Nearly three in 10 highly educated young people in Bangladesh are unemployed, while almost half of those who find work are employed in jobs that do not adequately match their qualifications, highlighting a persistent mismatch between education and labour-market demand, according to the International Monetary Fund (IMF).
The findings were presented in the IMF’s Regional Economic Outlook: Asia and Pacific, released in Bangkok, Thailand, on Friday, 16 October 2026.
The report points to significant challenges in translating educational attainment into productive employment, despite the country’s expanding working-age population.
The unemployment rate among highly educated youths stands at 28-29 per cent, compared with 12-13 per cent for the overall youth population, the report says.
The figures suggest that higher education alone does not guarantee access to jobs that reflect young people’s qualifications and skills.
The report identifies a mismatch between the skills acquired through the education system and those sought by employers as a key factor behind the problem.
Bangladesh’s large informal sector presents another obstacle to securing quality employment.
Workers in informal jobs often face irregular incomes, limited job security and few opportunities for career development, restricting their prospects for stable and productive work.
Demographic dividend at risk
Despite these challenges, Bangladesh has an opportunity to boost economic growth by making better use of its expanding working-age population.
The IMF projects that the country’s population aged 15-64 will grow by 10-12 per cent between 2025 and 2035, creating a potentially significant source of labour for the economy.
However, the benefits of this demographic expansion will depend on the economy’s ability to generate sufficient quality jobs and equip young people with skills that meet employers’ needs.
Without improvements in employment opportunities and workforce skills, the growing working-age population could intensify pressure on an already challenging labour market.
AI reshapes demand for skills
The report also highlights the growing influence of artificial intelligence (AI) on labour markets across Asia, with changing technology affecting demand for different types of jobs.
Demand for occupations highly exposed to AI has declined by around 10 per cent relative to jobs less affected by the technology, the IMF says. At the same time, demand is increasing for workers with AI-related skills.
The changing employment landscape adds urgency to the need for Bangladesh to strengthen technology-driven skills development and prepare young people for evolving workplace requirements.
Education-employment gap needs attention
The findings underline the importance of closer alignment between education and the labour market, alongside efforts to expand productive and secure employment.
For Bangladesh, the challenge is not simply to increase educational attainment but to ensure that graduates can find jobs suited to their qualifications and that workers have access to opportunities for professional advancement.
Expanding quality employment, strengthening technical and digital skills, and improving links between educational institutions and employers will be essential to turning the country’s demographic advantage into sustained economic growth, the report’s findings suggest.