Educated Unemployment Costs BDT 265 Billion Annually

Md. Tofazzal Hossain Tuhin graduated from one of Bangladesh’s top universities two years ago with big career dreams. Today, he struggles to make ends meet, a victim of educated unemployment. He’s not alone—around 13.5% of graduates, or 885,000 people, face the same fate, costing the country an estimated BDT 265 billion annually, or 0.6% of GDP.

According to the Bangladesh Bureau of Statistics (BBS), nearly 885,000 university graduates are currently unemployed across the country. This represents approximately 13.5% of the total tertiary-educated workforce, indicating a significant gap between the supply of skilled labor and available job opportunities.

Economists estimate the economic loss by calculating the potential annual earnings that unemployed graduates could have contributed. Assuming an average entry-level salary of BDT 300,000 per graduate per year, the calculation is as follows:

885,000 graduates  × 300,000 { BDT/year} = 265,500,000,000 { BDT/year} {BDT 265Billion }

This figure represents the lost income that these graduates could have earned, which in turn impacts the country’s consumption, investment, and overall economic growth. Beyond the monetary loss, educated unemployment also contributes to wasted human capital, social frustration, and slower innovation, all of which hamper long-term development.

Experts point to several reasons behind this growing challenge, including rapid population growth, limited high-skill job opportunities, and a mismatch between the education system and labor market needs. While Bangladesh has made significant progress in higher education and literacy, the economy has struggled to absorb the increasing number of graduates, especially outside sectors like garments and low-skilled services.

Economists and policymakers stress the need for skills-based education, vocational training, entrepreneurship programs, and investment in high-tech industries. Creating more white-collar jobs and improving alignment between education and labor market demand are seen as critical steps to reduce educated unemployment.

“Tuhin’s situation is a reflection of a larger national problem,” said Dr. Rahman, a Dhaka-based economist. “Addressing educated unemployment is not just a social priority—it is an economic necessity to ensure that the country fully utilizes its human capital for growth and innovation.”

As Bangladesh strives to transition to a middle-income economy, tackling educated unemployment remains a priority. Every graduate  remains unemployed is a reminder of the untapped potential that could contribute billions to the nation’s economy.