The determinants of youth unemployment are based on lack of skills that the youth have, the size of the youth labor force and the youth demand along with aggregated demand. It seems that youth unemployment is more sensitive to the changes in aggregated demand that the adult unemployment. Some of the very common causes of unemployment in Bangladesh and other developing economies are the technological changes, contribution of women in labor force, demographic structure, economic conditions, production of electricity, immigration from rural areas towards towns and cities.

Economists and labor market experts attribute the high rate of inactive youth to various factors, including early marriage of girls, lack of necessary job skills, inadequate education, insufficient employment opportunities, and poor social conditions. Mental health is an important aspect of youth development. However, many young people face various mental health challenges such as anxiety, depression, and substance abuse. These challenges can arise from various factors such as social isolation, trauma, and family dysfunction.

Young population is an important human resource for development; they are vital elements for social, economic development and technological innovation change. But these resources have been facing a major challenge particularly the employment for young labor force. Young people have been disproportionately affected by unemployment, underemployment, vulnerable employment (sum of percentage of unpaid family workers and own account workers in the total employment) and working poverty. Even during periods of robust economic growth, the labor market is often unable to assimilate large numbers of youth.

Is Bangladesh in close to missing the demographic dividend
In a country with a youth bulge, as the young adults enter the working age, the country’s dependency ratio-- that is, the ratio of the non-working age population to the working age population—will decline. If the increase in the number of working age individuals can be fully employed in productive activities, other things being equal, the level of average income per capita should increase as a result. The youth bulge will become a demographic dividend. However, if a large cohort of young people cannot find employment and earn satisfactory income, the youth bulge will become a demographic bomb, because a large mass of frustrated youth is likely to become a potential source of social and political instability. Therefore, one basic measure of a country’s success in turning the youth bulge into a demographic dividend is the state of youth employment rate. Unfortunately, the recent record has not been favorable. While unemployment rates are naturally higher for young people, given their limited work experience, being appeared as double-digit unemployment.

Understanding Demographic Dividend
Demographic dividend refers to the growth in an economy that results from a change in the age structure of a country's population. This is typically brought on by a decline in fertility and mortality rates. Demographic dividends occur in countries that see declines in both fertility and mortality rates. A country that experiences low birth rates in conjunction with low death rates receives an economic dividend or benefit from the increase in productivity of the working population that ensues. As fewer births are registered, the number of young dependents grows smaller relative to the working population. With fewer people to support and more people in the labor force, an economy’s resources are freed up and invested in other areas to accelerate a country's economic development and the future prosperity of its populace.

To receive a demographic dividend, a country must go through a demographic transition where it switches from a largely rural agrarian economy with high fertility and mortality rates to an urban industrial society characterized by low fertility and mortality rates. In the initial stages of this transition, fertility rates fall, leading to a labor force that is temporarily growing faster than the population dependent on it. All else being equal, per capita income grows more rapidly during this time too. This economic benefit is the first dividend received by a country that has gone through the demographic transition.

Bangladesh is currently enjoying the benefits of the demographic dividend as the number of young people outnumbers the non-working-age population. The demographic dividend is accelerated economic growth resulting from a country's declining mortality and fertility rates and subsequent changes in the age structure of the population. Bangladesh isn’t doing enough to cash in on its demographic dividend. Presently, the foremost question for Bangladesh is whether the current momentum will continue in the coming years as well or if it will soon lose momentum. The question has arisen because the number of elderly people has increased over the years, pushing up the dependency ratio for the last two consecutive years.

The following chart shows that state of the working age population in comparison to the dependent populations last five years (2019 – 2023). In both areas there are negative scenarios that means the dependency ratio is increasing on the contrary the working age population is decreasing.

Demographic dividend may turn into a liability
So, what we need to do is to utilize the demographic dividend as an asset, before it becomes a liability. Analysts and demographers warn Bangladesh's first demographic dividend window will close between 2033 and 2040. The five-year plan envisages Bangladesh will become an ageing society by 2029 and an aged society by 2047.

Unemployment: current Bangladesh scenario According to data by the Bangladesh Bureau of Statistics (BBS), the number of unemployed persons grew by approximately 2.4 lakh to 25.9 lakh in the first quarter (January-March) of 2024 compared to the last quarter (October-December) of the previous year (2023). According to BBS Quarterly Labor Force Survey 2024, the jobless rate has increased to 3.51%. There were 23.5 lakh jobless persons in the nation in the fourth quarter of last year. On the other hand, it also showed that the unemployed ratio over the quarter 1 of year 2023 and 2024 found similar but in between the period from quarter 2 to quarter 4 of year 2023 it was in decreasing trend (decreased 3.51% to 3.20%) slightly (0.31% decreased).

The below graph also shows that, the number of unemployed among male and female group remain static by year-of-year (YoY) from Q1, 2023 to Q1, 2024. However, it was discovered during the year assessment that the rate of unemployed males fell by 0.24% and the rate of unemployed women fell by 0.45% from the start of the quarter to the conclusion of the quarter in 2023. The first quarter of 2024 saw a 0.31% increase in the unemployment trend, which was higher than the previous quarter of 2023 (Q4). The impacts of unemployed invariably alike on graduates- mental depression, embarrassment, socioeconomic vulnerability, erosion of inner potentiality, frustration and degradation of personality. Unemployment is caused by various reasons that comes from both the demand side and supply side. Demand side reduction may be caused by high interest rates, global recession and financial crisis. From the supply side frictional unemployment and structural employment play a vital role for go. It doesn’t take research to see what an acute turn in unemployment has taken place in Bangladesh. It can easily be predicted from looking at the crowd of youth in front of the manpower recruitment agencies, seeking to go overseas. If there were job opportunities in the country, the youth would not have become so desperate to go abroad.

One-third of all the new employment opportunities that are created for Bangladeshi people every year are abroad. Malaysia, Singapore or the Middle Eastern countries are the primary destinations for the less educated youths. The number of Bangladeshi citizens who have moved to Europe sailing through the Mediterranean Sea between 2009 and 2024 is 106,598. The degree of unemployment in the country can be estimated just from this figure.

The impact of youth unemployment in Bangladesh
Youth unemployment in Bangladesh has significant social, economic, and political implications. As a country with a large and growing youth population, addressing the challenges of unemployment is crucial for sustainable development. Here’s a detailed look at its impacts:
1. Economic Impact
Reduced Economic Growth: High levels of youth unemployment led to underutilization of the country's human resources, which can hinder overall economic growth.
Increased Dependency: Unemployment forces young people to rely on family or government support. This dependency adds pressure to family incomes and social welfare systems.
Stunted Skill Development: Extended periods of unemployment can cause young people to lose skills or fail to develop new ones, creating a cycle of poverty and low productivity.

2. Social Consequences
Increased Crime and Social Instability: Youth unemployment can lead to frustration, which, in some cases, may result in increased involvement in criminal activities or social unrest.
Mental Health Issues: Unemployment, especially when prolonged, can lead to a decline in mental health, including increased rates of depression, anxiety, and stress among the youth.
Erosion of Social Cohesion: High unemployment rates can exacerbate feelings of inequality and social exclusion, weakening the social fabric and fostering discontent within society.
3. Political Consequences
Increased Political Discontent: Unemployed youth may become disillusioned with government policies and leadership, leading to political instability. Unemployment can also drive the youth towards extremist ideologies or make them easy targets for radicalization.
Civil Unrest: Prolonged periods of high youth unemployment can contribute to protests, demonstrations, and even uprisings.
4. Migration Pressure
Brain Drain: High unemployment encourages skilled and educated youth to seek better opportunities abroad, leading to a brain drain.
Illegal Migration: Many unemployed youths resort to illegal means to migrate to other countries, which can expose them to exploitation, human trafficking, and other dangers.
5. Impact on Education
Misalignment with Market Needs: The gap between the education system and labor market needs is often a cause of youth unemployment that further exacerbates unemployment rates. Discouragement in Higher Education: Persistent unemployment may deter young people from pursuing further education, as they may feel that a degree or skill training will not guarantee a job.
6. Gender Disparities
Women Affected More: Youth unemployment often disproportionately affects young women due to gender-based barriers, such as cultural restrictions, lack of mobility, and fewer job opportunities.
7. Informal Employment and Exploitation
Informal Sector Dependence: Many unemployed youths turn to informal employment, which lacks job security, benefits, and legal protections which increases their vulnerability to exploitation.
Child Labor: In extreme cases, families may push younger members into child labor due to the economic pressures caused by unemployment, affecting their education and future prospects.

Solutions and recommendations: to mitigate the negative impacts of youth unemployment, Bangladesh must focus on

1. Promote Education for Everyone
Equitable Access: Ensure all children, regardless of socio-economic background, have access to quality education to foster long-term development and economic growth. Skill Development: An educated workforce is better equipped with critical skills needed in an evolving job market.
2. Make Job Training More Accessible
Vocational Training: Provide practical, market-aligned training programs to equip youth with the skills needed for specific industries.
Lifelong Learning: Make job training available throughout a person's career to adapt to changing market conditions and technological advancements.
3. Increase Jobs in Labor-Intensive Industries
Boost Employment: Expanding sectors like agriculture, textiles, and construction can absorb large numbers of workers, reducing unemployment.
Sustainable Growth: Labor-intensive industries are crucial for driving economic growth in developing countries with large youth populations.
4. Invest in Infrastructure
Job Creation: Large infrastructure projects (roads, bridges, etc.) create immediate employment opportunities in construction and related industries.
Economic Growth: Improved infrastructure enhances productivity, facilitates trade, and boosts long-term economic prospects.
5. Reduce Barriers to Unemployment Insurance
Safety Net: Simplify access to unemployment benefits, ensuring that unemployed individuals can maintain basic living standards while seeking new jobs.
Financial Security: It prevents poverty and enables job seekers to take time to find suitable employment rather than rushing into uncertain jobs.
6. Create Affordable Housing
Social Stability: Affordable housing reduces the financial burden on low-income families, allowing them to allocate resources to education, health, and other critical needs.

Some other initiatives

Vocational Training and Skills Development: Strengthening vocational education and aligning it with market demands can help reduce the skills mismatch.
Encouraging Entrepreneurship: Promoting entrepreneurship among the youth through access to credit, training, and mentorship can create new job opportunities and foster innovation.
Public-Private Partnerships: Collaboration between the government and the private sector can stimulate job creation in emerging industries such as technology, renewable energy, and service sectors.
Youth Engagement Programs: Effective youth policies and programs can provide the necessary platforms for employment, mentorship, and job placements.

Conclusions
A country is severely harmed when it has a high unemployment rate. We cannot expect the progress of our country to continue while leaving millions of its people unemployed and for our nation to continue to be proud of itself. Tackling youth unemployment in Bangladesh is essential for the country's long-term stability and prosperity. Failure to address this issue could result in ongoing economic stagnation and social challenges. It is imperative that we put out our utmost effort to eradicate this stain. Solutions for youth unemployment issues are to try to shed light on this phenomenon by concentrating on the capabilities and qualifications that are seen as critical for the employment opportunities. The government should focus on promoting entrepreneurship, infrastructure development, and the manufacturing sector to create new job opportunities. By taking these steps, Bangladesh can reduce its unemployment rate and achieve sustainable economic growth in the future.