Govt adopts data-driven strategy to boost jobs for marginalized groups

The interim government has adopted a data-driven labour market strategy aimed at improving employment outcomes for vulnerable and marginalized groups, marking a significant shift in Bangladesh’s social protection priorities. Although labour market programs constitute a smaller share of the overall social safety net, recent years have seen notable strategic recalibrations. According to the propos

The interim government has adopted a data-driven labour market strategy aimed at improving employment outcomes for vulnerable and marginalized groups, marking a significant shift in Bangladesh’s social protection priorities.

The reallocation within labour programs reflects a clear policy shift. The budget share for entrepreneurship support has risen significantly—from 10.76% in FY 2023–24 to 21.90% in FY 2024–25, and now to 36.83% in FY 2025–26.

This trend underscores a growing focus on self-employment and enterprise development, particularly for unemployed youth and marginalized populations.

Flagship initiatives such as the Promoting Gender-Responsive Enterprise Development and TVET Systems (ProGRESS) and the Economic Acceleration and Resilience for NEET (EARN) have played a pivotal role in this transition, delivering tangible results in youth and women’s economic empowerment.

Consequently, economic inclusion programs—which provide training, assets, and credit—now account for 60.84% of labour market expenditures in FY 2025–26.

This marks a decline from 74.18% in the current fiscal year and 86.11% in FY 2023–24, indicating a diversification of program priorities.

Notable entrepreneurship-focused interventions include the Fund for Women Entrepreneurs and the Rural Mother Centre Programme, both of which have been scaled up to enhance women’s economic participation and stimulate rural job creation.

Meanwhile, traditional vocational training retains a more targeted role, comprising 3.92% of labour programme spending in FY 2024–25.

Programs such as the Transforming Backward Youth into Skilled Industrial Workers Project, the nationwide Freelancing Training Programme, and an expanded Driving Training Programme for overseas employment are designed to build skill pipelines for both domestic and international labour markets.

Initiatives like the Vulnerable Women Benefit (VWB) and the Rehabilitation Programme for Persons Engaged in Begging further reinforce the government’s inclusive growth agenda by integrating social protection with employment generation.

Despite these efforts, Bangladesh’s domestic labour market remains under pressure. Youth unemployment stands at 16.8%, with 30.9% of young people not in education, employment, or training (NEET).

Graduate unemployment has also increased, reaching 13.1% in 2023, highlighting a widening gap between skills and market demand.

A nearly 30% decline in manpower exports in 2024 has further exacerbated domestic employment challenges. In response, initiatives like the Skills for Employment Investment Program (SEIP) and upcoming training programmes for over 841,000 youth aim to address this skills gap.

The formation of the Labour Reform Commission in April 2025 and ongoing national dialogues signal a renewed push for labour law reform, the formalization of informal work, and the expansion of social protections.

On June 2, Finance Adviser Dr Salehuddin Ahmed unveiled a Tk7,90,000 crore national budget for FY 2025–26—equivalent to 12.7% of GDP—via a televised address.

This is the 54th national budget and the first under the Dr Muhammad Yunus-led interim government. Of the total, Tk5,60,000 crore has been allocated for operating expenses and Tk2,30,000 crore for the Annual Development Programme (ADP).