Unemployment rate hits historic high, rises to 4.63% as 27.4 lakh now jobless

Bangladesh is facing a concerning rise in unemployment, with the jobless rate climbing to 4.63% in the October–December quarter-its highest in recent years-amid persistent economic and political instability. According to the latest quarterly Labour Force Survey by the Bangladesh Bureau of Statistics (BBS), around 27.3 lakh people are now unemployed under the updated methodology prescribed by the 19th International Conference of Labour Statisticians (ICLS).

This new figure marks a sharp increase from 3.95% during the same period last year. When measured using the older 13th ICLS guideline, the unemployment rate also rose to 3.69% in December 2024, up from 3.20% the year before. In terms of actual numbers, unemployment under the 13th ICLS definition now stands at 26.1 lakh-206,000 more than the previous year-while the newer method shows a jump of 330,000 people.

Economists say the spike in joblessness is being driven by high inflation, a deteriorating investment environment, and rising bank interest rates—all of which are discouraging businesses from expanding or hiring.

The shift in methodology also plays a significant role in how employment data is interpreted. Under the 13th ICLS guideline, people working even an hour in unpaid family roles or producing for their own household are counted as employed. In contrast, the 19th ICLS framework only includes those who worked for pay or profit in the last seven days, excluding unpaid labour.

BBS‍‍`s move to adopt the 19th ICLS standard aligns with international trends and follows criticism over outdated methods. However, the switch has also highlighted stark differences in employment statistics, depending on which guideline is applied. This dual reporting system paints a more complex picture of the country’s labour market at a time when economic pressures are mounting.