Bangladesh: 86% women in 2.1 mn job loss, can Yunus deliver where Hasina did?

First Post

27-05-2025

Once a global symbol of women's empowerment, Yunus now presides over a decline in employment of women in Bangladesh read more
In recent years, the narrative around women's economic participation in Bangladesh has appeared encouraging on the surface. Official data from the Bangladesh Bureau of Statistics (BBS) claims a notable increase in female labour force participation, from 36.3 per cent five years ago to 42.68 per cent in 2022.
Particularly in rural areas, where the participation rate exceeds 50 per cent, this suggests a nation steadily progressing toward greater gender parity in employment, according to BBS figures released on March 29, 2025. Yet, a deeper look into the quality, sustainability and truth behind these figures tells a starkly different story.
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According to an analysis by the Centre for Policy Dialogue (CPD), the actual participation rate of women in economic activity may be closer to 19 per cent. This dramatic discrepancy raises crucial questions about how labour force participation is measured, what constitutes employment and who is left out of official tallies.
At the same time, a recent loss of 2.1 million jobs in the first half of the fiscal year— with women accounting for nearly 86 per cent of those losses— has exposed the fragility and superficial nature of women's inclusion in the economy, as highlighted during an event titled Advancing Gender-Responsive Budgeting and FfD4 Outcome organised by Citizen's Platform for SDGs, Bangladesh and UN Women Bangladesh, The Daily Star reported.
A shift in leadership and the waning of women's gains
Bangladesh made significant strides in including women in its economy during Sheikh Hasina's time as prime minister. Her government introduced policies focussing on women, expanded social safety nets and promoted female employment in sectors like garments, microfinance and education. Initiatives to support rural female entrepreneurs and reduce child marriage were also more noticeable and measurable under her leadership.
Ironically, when Muhammad Yunus, a Nobel Peace Prize winner known for empowering rural women through microfinance, became the Chief Adviser of Bangladesh, progress for women in the labour market did not continue as expected. Despite his global reputation, employment indicators worsened, NEET (Not in Education, Employment, or Training) rates rose, and safe overseas job opportunities for women declined. This suggests a disconnect between symbolic leadership and effective policy execution.
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Yunus's administration has faced challenges, including youth unemployment, economic instability and a loss of public trust in the banking system. While efforts are being made to reform labour laws and improve transparency, the situation highlights the irony of a leader celebrated for empowering women struggling to maintain that progress in a broader administrative role.
Measurement mirage: Conflicting data and the real picture
The BBS paints a picture of steady advancement. Their survey emphasises significant progress in rural female employment, crediting women with increasingly contributing to the national economy. However, CPD Senior Research Fellow Towfiqul Islam Khan, speaking at the UN Women event, highlighted that the official labour force figures overstate the actual engagement of women, The Daily Star reported. Only 19 out of every 100 women are actively participating in economic activity, many of whom are not even securing formal employment.
This gap between BBS and CPD data is not merely a statistical disagreement but a reflection of flawed definitions and inconsistent measurement frameworks. For instance, BBS considers anyone working even one hour per week for pay as employed. This definition inadvertently captures many women engaged in irregular, marginal or unpaid family labour, thereby inflating participation rates and masking economic vulnerability.
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Further complicating the narrative is the officially reported female unemployment rate of 3.6 per cent, which Khan argues is closer to 9.7 per cent. Among young women, unemployment exceeds 22 per cent. These figures suggest that the real crisis is not just in the quantity but the quality and security of employment opportunities available to women.
Unseen and unpaid: Hidden economy of women's labour
A significant portion of women's economic contributions remains invisible in national statistics. This is particularly true for the overwhelming number of women engaged in unpaid care work, domestic labour and informal sectors. CPD found that 80.8 per cent of employed women hold what are termed 'vulnerable jobs', characterised by low productivity, limited security and poor financial returns. Only 3 per cent of employed women receive pensions or retirement benefits, highlighting the lack of long-term social protection.
The World Bank, in its report Voices to Choices: Bangladesh's Journey in Women's Economic Empowerment released in April 2019, highlights that over one-third of women in the labour force are unpaid family helpers. These women work without pay in family-run farms, shops or other informal enterprises, often without acknowledgment or compensation. In essence, they serve as the backbone of rural and low-income household economies while remaining statistically invisible and economically powerless.
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The burden of unpaid work further constrains women's ability to engage in paid employment. Childcare, elder care and household responsibilities disproportionately fall on women, leaving them with fewer hours, less mobility and limited opportunities for formal work or education. This entrenched inequality in time use is a critical but under-discussed barrier to gender parity in the labour market.
A silent exodus: Job losses and economic shocks
Economic stressors like inflation and declining private investment have disproportionately affected women, according to Debapriya Bhattacharya, convenor of the Citizen's Platform for SDGs and a distinguished fellow at CPD, The Daily Star reported. Sectors that traditionally absorb female labour, including ready-made garments, domestic work and small-scale retail, have faced the brunt of economic contraction, automation and global shifts in supply chains.
CPD noted that nearly two-thirds of young women belong to this group, indicating a systemic failure to integrate half the population into meaningful economic roles. This represents not only a wasted demographic dividend but a looming social crisis with long-term implications for national productivity and stability.
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Economic disempowerment and structural barriers
Behind every statistic lies a web of social, cultural and institutional barriers that continue to limit women's access to quality work. The World Bank points to persistent gender gaps in asset ownership, financial inclusion and entrepreneurial activity. For instance, women own significantly less agricultural and non-agricultural land than men and have limited access to credit and formal banking systems.
Even among those women who work, control over income remains an issue. The World Bank found that many women must hand over their earnings to husbands or family members, reducing their financial autonomy. Only 36 per cent of women have bank accounts, compared to 65 per cent of men. These disparities limit women's ability to save, invest and engage in entrepreneurial ventures, reinforcing cycles of dependence and poverty.
The situation is worse for women seeking work abroad. Female migrant worker departures dropped from 8,789 per month in 2022 to just 4,610 so far in 2025, according to data from the Bureau of Manpower, Employment and Training cited by CPD. For those who do manage to migrate, reports of forced labour, abuse and exploitation are increasingly common highlighting the need for stronger legal protections and safer migration pathways.
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The crisis in women's employment is not just a setback for gender equality but a national economic emergency in Bangladesh. While 44 ministries currently produce gender budget reports, the quality and utility of these documents remain limited.
The perception of progress in female employment in Bangladesh is built on precarious foundations. The contradiction between official statistics and lived realities reflects deep-seated structural inequalities that policies have yet to meaningfully address.
As women continue to dominate low-quality, insecure and invisible forms of labour, Bangladesh risks stagnating not only in its gender equality goals but also in its overall economic development.