FROM PAGE B1

Noted economist Rizwanul Islam said the total number of people in the labour force has declined, indicating that potential members of the labour force are feeling discouraged by job prospects and are staying away.

The latest QLFS data showed that the labour force participation rate declined in the fourth quarter of 2024 and throughout 2025, mainly due to reduced participation of women in the workforce.

“The number declined more sharply for women, which means that the country is unable to utilise a major part of its human resources. The gender difference and its causes require serious research,” added Islam, a former special adviser on employment at the International Labour Office in Geneva.

“Rising unemployment is a matter of worry, but it is more worrisome if it is associated with a rise in youth unemployment, which is already much higher than general unemployment.”

The country is not only losing out on the possibility of reaping demographic dividends but also seeing a potential source of social discontent and unrest continue, he said.

The number employed in industry has continued its downward trend despite healthy growth in exports and output, indicating a continuation of jobless growth.

Furthermore, the continued decline in the share of industry shows that the reverse movement of the structure of employment is continuing. From a long-term point of view of development, this is disappointing and worrisome, the economist added.

Prof Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue, said job creation depends mainly on private investment, which has stagnated.

Amid high inflationary pressure, the central bank is controlling the supply of money to cool off prices, leading to a rise in lending rates. Another major factor hindering investment is political uncertainty.

Inflation has remained above 9 percent since March of 2023, standing at 9.17 percent in April this year.

Amid the central bank’s measures to control the money supply, credit flow to private firms grew by only 7.15 percent in January this year, the lowest since at least 2015, according to data from the Bangladesh Bank.