An unemployment rate among graduates begs the question of whether the country needs as many graduates as it is producing. Sectors such as RMG, IT, healthcare, agro-processing, development, manufacturing, and infrastructure development has been reported to face sever skill-shortages. The explanation is that the country is not producing the right kind of graduates.
The disconnection between market needs and the curriculum of higher education institutions is a major contributor to high levels of graduate unemployment and underemployment. There is historical precedence for this (for example, the first public textile university in Bangladesh was established in 2011, 3 decades after the industry took off). Arts and humanities, with no real market demand, account for a large share of the students (31 percent) enrolled in graduate or higher studies. These graduates are being forced to work in administrative and managerial fields. This disconnect is less pronounced in private universities, with their enrollment trend in line with actual market demands.
Another big issue is the quality of graduates. Many of the businesses complain about lack of soft-skills: English language, computer, communication, and problem-solving skills. The University Grant Commission has admitted to the lack of quality, stating that although graduate education has been extended, quality has not been at par in some universities. Factors such as outdated curriculum, lack of effective quality assurance, and a dearth of effective accreditation and quality assurance mechanisms is a constant shortcoming. Course grades are often wholly based on the performance in written exams, with less emphasis on presentations, case studies, and other analytical assignments. Pre-tertiary education also promotes a culture of rote-memorization that prevents development of problem-solving mindset. Although steps have been taken to overcome these problems at primary and secondary level, there is a long road ahead.
Employment growth has been uneven. Overall employment growth in 2005-12 was 4.1 percent. Administrative and managerial positions recorded a 28.2 percent growth in 2005-12 periods whereas clerical employment decreased. It is surprising that students with master’s degree make up 9.5 percent of clerical jobs, pointing towards possibility of underemployment of graduates as well. Graduate unemployment in Bangladesh is estimated at 47 percent. This is very high comparing with neighboring countries such as India (29 percent), Pakistan (31 percent), and Sri Lanka (6.8 percent). The unemployment rate among the people with master’s degree (17.5 percent) is higher than those with bachelor’s degree (0.73 percent).
