Harnessing Demographic Dividend Dynamics of Youth Labour in Bangladesh

Abstract

Young population is the most important resource that can contribute to accelerated economic and social development of a country. If engaged in economic activities of the country in a well-coordinated manner, they can be a formidable force in taking the country forward. On the contrary, if not addressed, youth unemployment can become a threat to social, economic and political stability of a country. Youth unemployment can result in demoralisation, depreciation in human capital and social exclusion (Freeman and Wise, 1982). Unemployed youth may gradually lose their skills and become mentally frustrated or socially alienated (Freeman and Wise, 1982). Youth unemployment is associated with malnutrition and loss of self-con dence, which may lead to depression. Additionally, youth unemployment may instigate stress and strife within families. Prolonged periods of unemployment can be psychologically debilitating and increase chances of future unemployment or wage penalty (Bell and Blanch ower, 2009). Crime rates are found to be positively related to youth unemployment (Fougère et al., 2009). More than 33 per cent of Bangladesh’s total population represents youth who are aged between 18-35 years (Ministry of Youth and Sports, 2017). Thus Bangladesh is uniquely positioned to bene t from demographic dividend – a situation when the dependency ratio is low due to the large working-age population. However, this potential remains mostly untapped since a large section of the young population is outside the labour market, and thus cannot contribute to the economy.