Unemployment

Presentation on The Impact of

Unemployment in Bangladesh

Presented by:

Name ID

A.W.M. Anwarul

Haque

M1213012

Shahrin Fatema

Shrabony

M1213013

Sumaya Imam M1213016

Tanvir Ahmed M1213020

Abu Zafar Md. Shaleh M1213021

Md. Mehedi Hasan

Chowdhury

M1213034

Outline of The Presentation

Introduction part Methodology Causes of unemployment Impact of unemployment Findings and analysis Conclusion and recommendation

Introduction

Unemployment occurs when people are without jobs and they have actively looked for work within the past four weeks.

Bangladesh is highly populated country. Unemployment scenario is like a threat on Bangladesh’s economy.Manpower is considered everywhere as precious national

assets, unfortunately we are unable to utilize properly our human resources.Bangladesh ranks 7th among 220 countries of the world in terms of the size

of its labour force.

Problem Statement

• Our unemployed youths are totally influenced by the effect of unemployment.

• The unemployment people and their families live a very miserable life.

Objectives

The broad objective :•Find out the impact of unemployment in Bangladesh.

The specific objectives are- •To find out the cause of unemployment in Bangladesh.•To find out the impact of unemployment on society of Bangladesh.•To find out the impact of unemployment on economic condition of Bangladesh.• To find out the labour force by sex and residence.•To find out the employed and unemployed population by sex and residence.

Hypothesis

The hypotheses of this study are-Labour force participation rate of male is higher than that of female.Unemployment is higher in rural areas than urban areas. Unemployment rate of female is higher than that of male.

Rationale of The Study

We are tried to find out the actual unemployed.Our economic and social scenario due to unemployment .

Scopes of The Study

• It has measured the living standard of mass people.• Utilization of our labour force.• To know the employed and unemployed people of Bangladesh.

Limitations of The Study• All of the data presented are secondary data.• Data is found up to 2010. • Because of time shortage many related area can’t be focused in depth.

MethodologyThe sources of secondary data for the study are-

•Studying and verifying the relevant reports & documents• Bangladesh Bureau of Statistics.• Millennium Development Goals.•International Labor organization.

• Disequilibrium Unemployment: When the real wage rate is above the equilibrium.

• Equilibrium Unemployment: It refers to the natural unemployment.

Disequilibrium Unemployment

Real wage unemployment : Monopoly power of trade unions Govt.’s involvement

Demand deficient unemployment : Economic recessions Firms build a stock of unsold goods

Unemployment by growth in labour supply: The equilibrium real wage rate falls

Equilibrium Unemployment

Frictional unemployment: When voluntarily leave their job or sacked Occurs in urban area of Bangladesh, Ex: Dhaka city.

Structural unemployment: When the structure of the economy changes

Regional unemployment: Occurs due to the concentration of particular industries in

particular areas. Seasonal unemployment:

when the demand for certain types of labour fluctuates with the season of the year

Causes of Unemployment in Bangladesh Defective education system Slow economic growth More emphasis on capital intensive techniques Less means for self-employment

Job search and false illusion Employer incentives Global recession Lack of proper utilization of resource Lack of positive belief and outlook

IMPACT OF UNEMPLOYMENT

Two folds impact

1. Social Impact

2. Economic Impact

Apparently, serious social evil High rate indicates unhealthy situation of an economy Neither improve life nor can help the nation to progress Suffer for this huge inactive population

Social Impact of unemployment in BangladeshSocial Impact of unemployment in Bangladesh Impact on personality and skill

The longer people are unemployed, the more dispirited they may become

Exploitation of labour Labourers are exploited to the maximum possible extent

Impact on relationshipsMay bring a decrease in social outings and interactions with other

people, including friends Impact on social security

Breeds many social problems comprising of dishonesty, gambling, bribery etc. As a result of unemployment social security is jeopardized

Political InstabilityLose all faith in democratic values and peaceful means.

Health and mental diseasesCauses depression, dissatisfaction, anxiety, hopelessness and many

other negative emotional states

Economic impact of unemployment in BangladeshUnemployment Financial Cost

Government losses tax revenues, Firms lose the profit that could have been made

Gross Domestic Product (GDP) rate decreaseHigh unemployment rate does not help to change the GDP progress

moreTension over taxes rise

Unemployment also brings up discontent and frustration amongst the tax paying citizens

Spending powerPoor spending power of people increase the tendency of saving which in

terns adversely affects the economy

Economic impact of unemployment Economic impact of unemployment

Standard of leavingCompetition for jobs and the negotiation power of the individual

decreases and thus also the living standard of people with the salaries packages and income reduced

Increase in PovertyHigh number of unemployed members of the country is one of the

prime reasons of poverty.Urban Overpopulation

Lower development & work activities effects in rural-urban migration in our country

Economically active population (million)

0

10

20

30

40

50

60

Economically Active Population (million)

Year 1983-84 1984-85

1985-86 1995-96 1999-2000 2002-03 2005-06 2010

Economically Active Population ( million)

28.5 29.5 30.9 36.1 40.7 46.3 49.5 56.7

Table : Economically active population (million) (15 years and more) over time

Labour Force Participation Rate (%)

0

10

20

30

40

50

60

70

80

90

Male

Female

Year 1983-84 1984-85 1985-86 1995-96 1999-2000 2002-03 2005-06 2010Male (%)

78.5 78.2 81.4 87.0 84.0 87.4 86.8 82.5

Female (%)

8.0 8.2 9.9 15.8 23.9 26.1 29.2 36.0

Table : Labour force participation rate (%) by sex over time

Employed and Unemployed Population (million)

0

10

20

30

40

50

60

Employed

Unemployed

Year 1983-84 1984-85 1985-86 1995-96 1999-2000

2002-03 2005-06 2010

Employed(million)

27.9 29.0 30.5 34.8 39.0 44.3 47.4 54.1

Umemployed(million)

0.5 0.5 0.4 1.3 1.7 2.0 2.1 2.6

Table : Employed and unemployed population (million) (15 years and above) over time

Unemployed Population by Sex (million)

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1999-2000 2002-03 2005-06 2010

Male

Female

Year 1999-2000 2002-03 2005-06 2010Male (million)

1.1 1.5 1.2 1.6

Female (million)

0.7 0.5 0.9 1.0

Table : Unemployed population (million)of Bangladesh by sex

Unemployed Population by Residence (million)

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

1999-2000 2002-03 2005-06 2010

Urban

Rural

Year 1999-2000 2002-03 2005-06 2010Urban(million)

0.5 0.6 0.5 0.9

Rural(million)

1.2 1.4 1.6 1.7

Table : Unemployed population (million) of Bangladesh by residence

Unemployment Rate of Bangladesh (%)

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Unemployment rate (%)

Year 1983-84 1984-85 1985-86 1995-96 1999-2000 2002-03 2005-06 2010

Unemployment Rate (%)

1.8 1.7 1.3 3.6 4.2 4.3 4.2 4.6

Table : Unemployment rate (%) in Bangladesh over time

Unemployment Rate by Sex (%)

0

1

2

3

4

5

6

7

8

1999-2000 2002-03 2005-06 2010

Male

Female

Sex 1999-2000 2002-03 2005-06 2010Male (%) 3.4 4.2 3.4 4.1Female (%) 7.8 4.9 7 5.8

Table : Unemployment rate (%) of male and female in Bangladesh

Conclusion

Unemployment is a serious problem of Bangladesh. It affects not only the society but also the economic condition of Bangladesh. There are no exhaustive remedies for unemployment problem nonetheless solving unemployment is a continuous process. So we should take utmost effort to develop our condition through proper plan.

Recommendations

Some suggestion and policy recommendations are given bellow which can contribute in reducing unemployment in Bangladesh.

We should develop a political calm environment where foreign investment frequently come.

Industrialization is the most important factor for solving unemployment problem.

We should pay attention strongly to vocational and technical education.Language efficiency and computer education are another important

factors for getting job.The scope and coverage of the Equity Entrepreneurship Fund (EEF)

should be extended beyond agriculture and IT-enabled services (ITES) to cover other potential areas like electronics, light engineering.

Thank You

Any Question?