The large share of young people in Bangladesh’s population, once seen as a major economic advantage, is increasingly becoming a source of concern as the country struggles to create enough skilled workers and quality jobs.
With around 11.44 crore people aged between 15 and 64 — nearly 65% of the total population — Bangladesh is passing through a critical phase of its demographic dividend. But economists warn that the opportunity may turn into a burden unless the country can rapidly improve education quality, skills development and employment creation.
The warning comes ahead of International Youth Day, which will be observed globally Wednesday. A demographic dividend occurs when the working-age population grows faster than dependent groups such as children and elderly people, creating opportunities for higher production, income, savings and investment.
However, economists say a large workforce alone cannot deliver economic benefits unless people are equipped with relevant skills and connected to productive jobs.
According to the United Nations Population Fund (UNFPA), Bangladesh entered its demographic dividend phase in the 1990s. But the opportunity is time-bound, as the share of working-age people is expected to decline in the coming decades while the elderly population increases.
Former Bangladesh Institute of Development Studies (BIDS) director general and former Bangladesh Bank chief economist Mustafa K Mujeri said Bangladesh as failing to fully utilise its youth potential.
“A large section of the country’s population is of working age, yet they remain disconnected from the economy. Around 26 lakh graduates enter the job market every year, but unemployment remains worrying. If this huge youth force cannot be utilised, the demographic advantage may turn into a burden rather than a blessing,” he told TIMES of Bangladesh.
Skills gap widens
One of the biggest challenges is the growing mismatch between education and employment.
Although around 44–45 lakh students are enrolled in higher education, many graduates struggle to find jobs matching their qualifications.
According to the Bangladesh Bureau of Statistics (BBS) Labour Force Survey, around 26.20 lakh people are unemployed, including a significant number of highly educated youths.
Economists also point out that Bangladesh’s unemployment statistics do not fully reflect the employment crisis, as international definitions consider anyone working at least one hour a week as employed.
The skills mismatch is also visible in industries. While demand is rising for workers in technology, engineering, manufacturing and modern services, a large number of students continue to pursue general education, with limited participation in science, technology, engineering and mathematics (STEM) and technical training.
As a result, universities are producing degree holders while businesses struggle to recruit workers with industry-relevant skills.
Economist Fahmida Khatun told TIMES that Bangladesh has reached an important stage of its demographic dividend but has not been able to maximise the opportunity.
“The number of working-age people has increased, but productive and quality employment has not grown at the same pace. Opportunities for educated young people that match their skills and qualifications remain limited,” she said.
Overseas opportunities remain untapped
The global labour market could provide Bangladesh with another opportunity, particularly as many developed countries face ageing populations and growing demand for skilled workers.
Healthcare, caregiving, construction, manufacturing, technology and service sectors are expected to require more workers in countries experiencing demographic decline.
Mujeri said Bangladesh could benefit from this changing global demand by developing workers with technical skills, language abilities and internationally recognised certifications.
However, Bangladesh remains largely dependent on exporting unskilled and semi-skilled workers due to weaknesses in training and certification systems.
“Professional skills alone are not enough for overseas employment. Language and communication skills are also crucial,” experts said.
Women and youth left behind
A large number of young Bangladeshis remain disconnected from education, employment and training. The NEET (not in education, employment or training) rate among people aged 15–29 is around 39.88%, meaning nearly four out of every 10 young people in this age group are outside the education system and labour market.
The situation is particularly severe among women. While the NEET rate among young men is 18.55%, it is 61.71% among women.
Fahmida Khatun said increasing women’s participation in the labour force is essential for utilising Bangladesh’s demographic dividend.
“If a large number of working-age women remain outside the labour market, a significant portion of the country’s human resources remains unused,” she said.
Investment challenge
The shortage of jobs has also been linked to weak investment and slow industrial expansion.
GDP growth stood at 4.14% in the 2025–26 fiscal year, while growth slowed to 2.2% in the first quarter of the current fiscal year.
Bangladesh’s investment-to-GDP ratio remains around 28.5%, with private investment accounting for 22.03% and public investment 6.51%.
Fahmida Khatun said higher investment is necessary to create industries, expand production capacity and generate large-scale employment.
“Without increased investment, new industries, businesses and production capacity will not develop, and large-scale employment opportunities will not be created,” she said.
Time running out
Economists say Bangladesh still has an opportunity to benefit from its demographic advantage, but the window is narrowing.
The working-age population is expected to begin declining between 2030 and 2040, while the elderly population will rise.
Mujeri said Bangladesh had already passed a significant part of its demographic dividend period but could still benefit if urgent measures are taken.
“The opportunity has not completely disappeared. There is still potential to utilise this advantage. Necessary measures must be taken within the remaining time,” he said.
