Not much for youth employment

The proposed budget seeks to increase the youth loan ceiling to Tk 2 lakh for trained individuals and Tk 5 lakh for successful entrepreneurs and also allocate Tk 100 crore fund for youths, as part of the interim government's efforts to address youth unemployment.

An additional Tk 100 crore has been allocated for a project titled Tarunyer Utshob (Youth Festival).

The government also aims to train and provide credit support to 9 lakh youth by December 2028. Freelancing training has already begun in 48 districts, targeting 28,800 educated but unemployed individuals.

Syed Sultan Uddin Ahmed, executive director of the Bangladesh Institute of Labour Studies, welcomed the increased loan ceilings for youth, but said money alone will not solve the unemployment problem.

"But loans are just a small part of what's needed," said Ahmed, also the chief of the labour reform commission.

Capital alone would not create entrepreneurs.

"Without support for access to land, training, international market links and regulatory assistance, even Tk 5 lakh won't be enough."

No ministry has submitted a 10-year workforce plan to the national skills authority despite importing advanced machinery.

There is an urgent need to coordinate among educational institutions, skills training agencies and industries to prepare the labour force.

"Without that, budget allocations alone won't solve the employment crisis."

Ahmed stressed the need for a comprehensive, future-oriented employment strategy aligned with ongoing transformations in the industrial and labour markets.

"We are witnessing fundamental changes in the nature of work due to automation and global shifts. Isolated initiatives cannot tackle youth unemployment -- what we need is an integrated national approach involving skills development, industry demand, financing, marketing and access to infrastructure," he added.

Prof Sayema Haque Bidisha, who teaches economics at Dhaka University, said the allocation for young entrepreneurs, the emphasis placed on various training programmes and the proposal to strengthen and establish training centres are commendable steps.

However, she said she is not clear about modalities of the Tk 100 crore Tarunyer Uthshob project.

"While the allocation sounds impressive, the key concern is on what will be the structure of this festival. If it becomes just a ceremonial event, its impact may be limited."

If the festival is designed to be employment-oriented -- focused on skill-building, entrepreneurship, internships, and job creation -- then it could be a truly meaningful initiative, she added.

Rizwanul Islam, former special employment adviser to the International Labour Organisation (ILO), also expressed scepticism about Tarunyer Utshob.

"I am not clear what impact it would have on creating jobs for youths."

He acknowledged the potential of the Tk 100 crore fund for youth entrepreneurs but emphasised the need for impartial execution.

However, only allocating some money and initiating a programme will not address the core unemployment issues.

"What we need is a comprehensive strategy. Without this, meaningful solutions will not emerge," he added.

Each year, around 2.2 million young people enter the workforce. Of them, around 1 million go abroad for employment, said Rajekuzzaman Ratan, a labour rights activist.

"But for the remaining ones, there is no clear employment policy -- not in last year's budget and not in this one either," he said, adding that many young people are being forced into jobs far below their qualifications.

The youth entrepreneur loan scheme might worsen debt burdens without real job creation, he said.

"In a fragile and vulnerable economy like ours, giving someone a Tk 5 lakh loan and expecting them to become an entrepreneur is unrealistic. It could simply increase their debt burden," he said.