Youth unemployment in Bangladesh is expected to remain significantly higher than the national average, with university graduates facing the greatest difficulties, according to the latest report by the International Labour Organization (ILO).

The ILO’s World Employment and Social Outlook (WESO) report indicated that Bangladesh could face mounting challenges in providing employment opportunities for its youth, especially against the backdrop of ongoing political, economic, social and climatic transitions.

The report also mentioned that the country sends over a million workers abroad each year, which adds further pressure to the domestic labour market.

Outgoing ILO Country Director for Bangladesh, Tuomo Poutiainen, was reported as saying that the global contraction in employment was deeply concerning for countries like Bangladesh.

He pointed out that the WESO findings highlighted the urgent need for the country to focus on generating decent employment, particularly for women and young people.

Poutiainen was also said to have stressed the importance of moving forward with reforms in skills development, as more employment opportunities were likely to emerge in high-skilled sectors, especially digital jobs.

According to him, preparing the workforce for such roles was critical for enabling access to better-paying and more specialised employment both at home and abroad.

The report further observed that, although educational attainment had improved globally, many labour markets—including Bangladesh’s—continued to suffer from mismatches between education and employment, leaving a considerable number of graduates without suitable job opportunities.

As of 2022, only 47.7 per cent of workers held qualifications that appropriately matched their job requirements. While the share of under-educated workers declined from 37.9 to 33.4 per cent over the past decade, the proportion of over-educated workers rose from 15.5 to 18.9 per cent.

The International Labour Organization (ILO), in its latest update World Employment and Social Outlook (WESO) released on Wednesday, downgraded its global employment forecast by up to seven million jobs in 2025 due to rising uncertainty.

Geopolitical tensions and trade disruptions were identified as key contributors to a weaker economic outlook, which is expected to result in slower job growth.

The ILO revised its global employment projection for 2025 to 53 million new jobs, down from the previously estimated 60 million.

This adjustment translates into a reduction in global employment growth from 1.7 per cent to 1.5 per cent for the year.

The decline—equivalent to around seven million fewer additional jobs—reflects a downgraded global economic outlook, with GDP growth now expected at 2.8 per cent, compared to an earlier projection of 3.2 per cent.

The ILO’s revised estimates are based on the latest economic growth forecasts published in the International Monetary Fund’s (IMF) April 2025 World Economic Outlook.

The report also estimates that approximately 84 million jobs across 71 countries are directly or indirectly linked to US consumer demand. These jobs—and the incomes they generate—are increasingly at risk due to heightened trade tensions.

The Asia-Pacific region accounts for the majority of these jobs—56 million—while Canada and Mexico have the highest proportion of jobs exposed to US demand, at 17.1 per cent.

ILO Director-General Gilbert F. Houngbo said that the global economy was growing at a slower pace than initially expected.

He warned that continued geopolitical tensions and trade disruptions, along with unresolved structural issues in the world of work, could have significant negative ripple effects on labour markets globally.

He added that proactive steps such as strengthening social protection, investing in skills development, promoting social dialogue, and creating inclusive labour markets were essential to ensure that technological advancements benefit all.

The report also highlighted growing concerns over income distribution. The labour income share—the proportion of GDP going to workers—fell globally from 53.0 per cent in 2014 to 52.4 per cent in 2024. The largest declines were observed in Africa and the Americas.

Had the labour income share remained stable, global labour income in 2024 would have been $1 trillion higher, equivalent to an additional $290 per worker in constant purchasing power terms.

This decline underscores the disconnect between economic growth and workers’ compensation and contributes to rising inequality.

The report further noted a shift in employment towards high-skilled occupations, with women leading this trend. Between 2013 and 2023, the share of women employed in high-skilled roles rose from 21.2 to 23.2 per cent, compared to 18 per cent for men in 2023.

However, occupational segregation persists, with women still underrepresented in sectors such as construction, while remaining overrepresented in clerical and caregiving positions.

The report also examined the impact of emerging technologies, finding that nearly one in four workers may see their jobs transformed by generative AI.

While medium-skilled roles are more likely to face some level of exposure, high-skilled jobs are more likely to be highly exposed, with a significant share of tasks potentially subject to automation.