Bangladesh is facing what economists are calling an “employment emergency,” as rising joblessness, political unrest, and fragile social safety nets push millions of people deeper into poverty. The warning came from leading economists at an online seminar titled “Why is Poverty Increasing Instead of Decreasing”, organized by the private research institute Power and Participation Research Center (PPRC) on Saturday night. The discussion shed light on troubling new data: poverty in Bangladesh has surged by 10 percentage points over the last three years, lifting the national poverty rate to 28 percent. Alongside this, nearly half of the population is now either poor or economically vulnerable. Poverty Rising Despite Growth: Presenting the keynote address, Hossain Zillur Rahman, Executive Chairman of PPRC, highlighted stark realities. According to a recent PPRC survey, 18 percent of people are considered “economically vulnerable.” This means that about 46 percent of the population is either poor or at significant risk of slipping into poverty.
He noted that the increase in poverty has been most pronounced in rural areas, where small farmers face mounting challenges such as rising input costs and shrinking profits. “More than half of all families, around 51 percent, report having at least one member suffering from a chronic illness, forcing households to divert scarce income into healthcare. Meanwhile, unemployment has risen to 4.63 percent from 3.95 percent, with the number of jobless people reaching 2.73 million,” he said.
Rahman warned that the country’s ongoing economic, political, and social unrest has made an already fragile financial situation far worse. “This is not a time for complacency. We must recognize that an employment emergency has been created in Bangladesh,” he stressed.
Rehman Sobhan: Reforms Without a Poverty Agenda: In the discussion session, Professor Rehman Sobhan, Chairman of the Center for Policy Dialogue (CPD), pointed out a fundamental weakness in government policy. “The current government, led by Professor Muhammad Yunus, has undertaken various reforms, particularly in governance and finance, but poverty alleviation has not been placed on the agenda,” he argued.
Sobhan said that while reforms in areas such as banking or revenue are important, they must be tied to employment and poverty reduction strategies. “Without such integration, poverty will continue to rise regardless of macro-level changes.”
Jobless Growth and Stalled Investment:  Professor Selim Raihan, from the Department of Economics at Dhaka University, expressed alarm at the mismatch between reported growth and the lived reality of the poor. “I was surprised that the 2022 BBS poverty survey did not reflect the impact of the pandemic. We have consistently seen that economic growth in Bangladesh has not been poverty-reducing or employment-generating. Instead, inequality has widened,” he said.
According to Raihan, wages in many sectors, including the country’s largest export earner - the garment industry - remain below the poverty threshold. “Even after working full-time, millions of workers are officially poor. If this continues, growth figures will mean little to ordinary people.”
He added that the political uncertainty and fragile law and order situation make the outlook grim. “The question is whether the reform initiatives we are seeing now will be sustained by the next government. Without continuity, the poverty crisis will deepen further.”
Employment Definition Under Scrutiny: Fahmida Khatun, Executive Director of CPD, criticized the official measurement of employment in Bangladesh. “According to the BBS, if you work one hour a week, you are considered employed. This is absurd. No one can survive on such low earnings. We have seen ‘jobless growth’ for years, where GDP rose but new industries failed to create sustainable employment.”
She stressed that both domestic and foreign investment have stalled over the past decade, with industrial growth heavily concentrated in a few sectors. “Despite 15 years of GDP growth, the lack of new job opportunities shows how disconnected growth has become from employment and poverty reduction.”
Farmers Struggling With Rising Costs: From an agricultural perspective, Professor MA Sattar Mandal, former Vice Chancellor of Bangladesh Agricultural University, pointed to worsening conditions for rural households. “Fertilizer and irrigation costs have risen sharply. Due to drought, irrigation periods are longer, which means higher diesel costs. These have reduced farmer profits substantially,” he explained.
At the same time, rural purchasing power has declined, while wages for agricultural workers have stagnated. “When real wages don’t increase but costs rise, poverty inevitably worsens,” Mandal added.
Education Crisis and Weak Social Protection; Imran Matin, Executive Director of the BRAC Institute of Governance and Development (BIGD), linked the poverty surge to a wider governance crisis. “We are facing not only an employment emergency, but also an education crisis. Women’s participation in the labor force is declining. Social protection programs are inadequate and poorly targeted,” he said.
Matin emphasized that poverty reduction cannot be achieved without stronger institutions and good governance. “Specific programs are needed for women and vulnerable groups. Otherwise, inequality and exclusion will deepen.”
The Cost of Chronic Illness: One striking finding of the PPRC survey is that 51 percent of families are coping with chronic illnesses such as diabetes, heart disease, or asthma. “For many, regular spending on medicines has become unavoidable. Without stronger social protection, these families are falling deeper into poverty,” said Hossain Zillur Rahman.
He suggested that the government expand healthcare-related social programs to include these households. “Ignoring the health dimension of poverty is a mistake. We must act to prevent medical expenses from becoming the biggest driver of vulnerability.”
Political and Economic Instability Fueling Poverty: Beyond the statistics, economists agreed that political turmoil is worsening poverty trends. Investor confidence has weakened, foreign exchange reserves remain under pressure, and inflation continues to hurt real incomes.
Selim Raihan noted that “political instability creates uncertainty for both businesses and workers. Without stability, even well-designed reforms cannot deliver results.”
Fahmida Khatun added that stalled investment is both a cause and a consequence of political unrest. “Employers are unwilling to expand operations under uncertainty. Without new industries, the employment emergency will only deepen.”
A Call for Urgent Action: The seminar ended with a broad consensus: Bangladesh must adopt an integrated policy response that directly addresses employment, inequality, and social protection.
Hossain Zillur Rahman summarized the situation bluntly: “We are dealing with 46 percent of the population who are either poor or vulnerable. Employment is at the heart of the problem. Unless we treat this as an emergency, poverty will not decline - it will rise further.”
Economists recommended the following steps: Redefining employment standards so that part-time or underpaid work is not counted as full employment. Expanding rural support programs, particularly subsidies for farm inputs and irrigation. Targeted social protection for households facing chronic illnesses. Reviving domestic and foreign investment with political stability and improved business confidence. Promoting inclusive education and women’s employment, ensuring marginalized groups are not left out.
Bangladesh’s battle against poverty has entered a critical stage. The last three years have erased some of the gains made in previous decades, with poverty rising by 10 percentage points. Political unrest, jobless growth, rising rural costs, and weak social safety nets has combined to create an “employment emergency.”
As Professor Rehman Sobhan warned, reforms without a poverty reduction agenda will not solve the problem. And as PPRC’s Hossain Zillur Rahman stressed, without urgent action, nearly half the population will remain trapped in poverty or at its edge. The voices of economists at the PPRC seminar make it clear: Bangladesh’s fight against poverty will not be won by growth statistics alone. It requires jobs, stability, and policies that put the livelihoods of ordinary people at the center of national priorities.