Unemployment is a great concern in Bangladesh.

Every year hundreds of thousands

student are coming out from college and university. Though it is one of the major
responsibilities of the Government to provide job to those young generation but the
Government is failed to meet the job demand among the large population. Only a tiny
fraction of total jobless is managed by different government offices and private
organization but a majority remain unemployed.
Historically for a long time British administration was the main cause of this problem.
After ending Mughol regime when British came in Sub continent (India, Pakistan,
Bangladesh) they started to do business, they exploited the sub-continent. They did not
establish any Industry which is helpful to remove the unemployment problem. Though
some Industry was made but all of them were placed in Indian Territory. So Bangladesh
region was neglected from the British period. After ending British rule in 1947 Pakistan
adopted the same rule they established all kinds of Industry in West Pakistan not in East
Pakistan. As a result of Pakistani monopoly rule we saw the freedom fighting war in
1971. After nine months continuous war it is divided and named East Pakistan as a
Bangladesh.
After 1971 Bangladesh has been facing political crisis badly. As a result no government
can take long term massive step to remove the unemployment problem. Within 37 years
Bangladesh has experience about eight new governments and two assassination incident
at the top level country leader. So now political crisis is one of the major causes of
unemployment problem in Bangladesh. Among others two major parties BNP and
Aowamileague are busy to gain only political power. None of these parties are trying to
do anything to solve the country’s major problem “UNEMPLOYEMENT PROBLEM”
Many Asian developing countries are the bright example in the World who is successful
to remove the unemployment problem successfully. Korea, Malaysia, Singapore are the
newest of them. They are growing rapidly because there is no Political crisis.
Government assured the foreign investor about political calm environment. So many
American, European and Japanese company are investing in those regions spontaneously.
As a result they are developing very fast. Bangladesh Government and political leader
should learn from those Asian countries.
Recent attitude and activity of political parties are very hateful to the common people. By
election if a party goes to power then another party cannot accept that, they do not go to
parliament they do not express constructive opinion in the parliament which is helpful for
common people. But they should not do it. May be there is some discrimination of the
election result but there are overall acceptation of the common people. To think about
greater welfare of the country they should keep patient, they should support the
Government they should assist the Government to take the long term strategy to remove
the unemployment problem.
If we watch towards Japan, Korea, Malaysia what we will see? Due to Industrialization
they have changed a lot. Without Industrialization no nation can expect strong economic
basement and solution of unemployment problem. After political settlement the first and
foremost thing for Bangladesh is, to build up industry to remove the unemployment
problem. If they can assure the political calm and stable situation, then foreigner will
come to invest in manufacturing sector to build new industry. In this respect
Transportation, Road and Highway, Electricity should be reconstructed strongly
otherwise everything will be failed.
Specially Automobile and Electronics Industry are the major items to intensify a
country’s overall financial condition. Most of money is spent in these two sectors. Lot of
population can be employed in these industry. Because by surrounding a automobile or
electronics industry hundreds of supporting small industry will be built up. As a result a
lot of people will be employed. In this respect Government should adopt a strong and
strict policy about importing used car. After establishing automobile industry they should
ban import of all used car. Used car import is destroying the environment and
employment opportunity.
To intensify the overall industrialization our Ambassadors who are employed in different
countries specially Japan, Korea, Malaysia, Singapore can help the Government to adopt
strong, effective, active and successful policy. Because they are well known with those
countries environment, government and people. They have practical and expert feeling
about the development policy in different sector of the respective country.
We have already wasted a lot of time. We don’t want to live as the poorest and neglected
nation in the world. We want our economic growth, our honor. We have a lot of
workforce and a lot of money in the Bank. But due to proper utilization and proper
development planning we are staying in back. In this regard Political leader, Intellectual,
Industrialist, Planner, Ambassador, Teacher Student and migrated generation in abroad
should contribute to achieve the country’s economic progress. If we can take proper steps
to obtain our economic growth, then we can remove our unemployment problem.
God says if you want to love me try to love people first. If you believe in God you have
to love people. Ask yourself according your ability and responsibility how much has you
done to help the people to help the country? 80% People are living in rural area. After a
long struggle a village parents educate his children helped them to grown up. They help
them to gain college or university degree. Rest duty is yours. That is Government. Yes It
is Government’s duty to provide job, to create job for our young generation. It is
fundamental duty of a Government to solve the problem of Unemployment.

Types of Unemployment
Frictional unemployment

Frictional unemployment is the time period between jobs when a worker moves from one
job to another. Frictional unemployment is an example of a productive part of the
economy, increasing both the worker's long term welfare and economic efficiency, and is
also a type of voluntary unemployment.
Frictional unemployment is always present in an economy, so the level of involuntary
unemployment is properly the unemployment rate minus the rate of frictional
unemployment, which means that increases or decreases in unemployment are normally
under-represented in the simple statistics.

Natural rate of unemployment

The "natural" rate of unemployment is defined as the rate of unemployment that exists
when the labor market is in equilibrium and there is pressure for neither rising inflation
rates nor falling inflation rates.
Classical unemployment

Classical or real-wage unemployment occurs when real wages for a job are set above the
market-clearing level, causing the number of job-seekers to exceed the number of
vacancies.

Cyclical unemployment

Cyclical unemployment, also known as deficient-demand unemployment, occurs when

there is not enough aggregate demand in the economy. Cyclical unemployment is caused
by a business cycle recession, and wages not falling to meet the equilibrium level.
Cyclical unemployment rises during economic downturns and falls when the economy
improves. Keynesians argue that this type of unemployment exists due to inadequate
effective aggregate demand. Demand for most goods and services falls, less production is
needed and consequently fewer workers are needed, wages do not fall to meet the
equilibrium level, and mass unemployment results.

With cyclical unemployment, the number of unemployed workers exceeds the number of
job vacancies, so that if even all open jobs were filled, some workers would remain
unemployed.

Structural unemployment

Structural unemployment occurs when a firm or industry closes down due toa parmanent
decline in the demand for its products.It also occurs when labor market is unable to
provide jobs for everyone who wants one because there is a mismatch between the skills
of the unemployed workers and the skills needed for the available jobs.

Structural unemployment is hard to separate empirically from frictional unemployment,

except to say that it lasts longer. As with frictional unemployment, simple demand-side
stimulus will not work to easily abolish this type of unemployment.

Costs of Unemployment
Lost Prodoction
The single largest costs or unemployment is losi production. Unemployment is thus
negatively related with GDP. It has been estimated that 1 extra point of un ployment
redusec GDP by 2 percent
The Distribution Impact
The costs of unployment are not borne evenly by different sections of the population. It is
the unemployrd people who suffer most. In general unemployment hits the poor people
harder than the rich.
Lost Tax Revenue
Employed people pay taxes on their wages. Society in general benefits from the revenue.
Increased Unemployment means loss of tax revenue.
Social and psychological Impact
Idleness and lrngthy periods of unemployment makes people rusty and less productive.
High unemployment breeds crime, mental anxity and ill health.

Here are several solutions to unemployment:

1. Faster economic growth is viewed as a means of generating more jobs.

2.cuts in real wages -Cuts in real wages are a reaction to the view that through their
demands for higher wages, some groups of workers have priced themselves out of a job

3.Methods of accumulation and dissemination of information on available jobs and

workers could be improved -Swedish model, in which job centers have a nationwide,
integrated database of jobs, employers, and available employees. This type of database
could reduce the time spent by an average worker on the unemployment roll and thus
reduce the unemployment rate

4.unemployment agencies could tighten their job search and job acceptance
requirements

5. here could be improvements to the education and training provided to young people,
with a greater focus on vocational skills

6. countries need to ensure that their welfare systems do not provide disincentives to
work
 policies affect the labor market by reducing the supply of labor - For example, work
sharing, early retirement, and reduced migration

Generalized income guarantees - Guaranteed Minimum Income (GMI), Negative

==
Income Tax (NIT) and Basic Income. A non-conditional GMI or NIT, paid to each
individual, would at least ensure that no permanent resident would be without an
entitlement to a base income. This provides some limited security for those facing
unemployment and it provides an income floor below which no one falls without imposing
a ceiling beyond which no-one rises. With a Basic Income, because it is a universal
payment, people are always advantaged by any extra income obtained. However, a Basic
Income is just that - an unconditional universal income guarantee. It delivers an income
floor without interfering with productivity
==
== Government support to struggling industries in order to try to save jobs ==
Provide more training and education to the unemployed. This could help improve
==
computer skills and communication. These people will become more confident and
employable.
==
== The Government needs to try to create demand in the economy. It could; ==
- Give grants to businesses to produce goods
- Have projects such as road building
- Cut interest rates to encourage spending
- Cut income tax to encourage spending

Job creation is the number one solution.

The issue is one of how to create these jobs. What you MUST do is to get out of the way
of small businesses as they produce the most jobs for the dollar invested.

To do so, we should:

1 lower their tax burden.

2. Stop mandating foolish regulations
3. Stop providing grants and gifts to large corporations to unfairly compete against small
businesses
4. Increase work output by eliminating union mentalities in the work place.

Basically, we need to start believing that our Government is a necessary evil and that we
need as small a Government as possible to get what we really need done.

The minimum wage should be lowered, or better yet removed entirely. The idea that
minimum wage helps people within this country is silly, but a great vote getter! The idea
that raising minimum wage helps people is based on seriously flawed thinking. If it takes
45 minutes of work to buy a loaf of bread and they raise minimum wage, it will still cost
45mins to get that loaf of bread. The difference is only that it will now be easier for other
countries to compete against your job. Lowering minimum wage would do nothing to
reduce our standard of living, yet we could export more products to other countries.
Reducing minimum wage increases our ability to export products and fights inflation.

We say there are jobs but either there is lack of willingness to work or there is no proper
connect between aspirant and the corporate
cut down payments

Though many people care about the number of unemployed, economists typically focus
on the unemployment rate. This corrects for the normal increase in the number of people
employed due to increases in population and increases in the labor force relative to the
population. The unemployment rate is expressed as a percentage, and is calculated as
follows:

As defined by the International Labour Organization, "unemployed workers" are those

who are currently not working but are willing and able to work for pay, currently
available to work, and have actively searched for work.[50] Individuals who are actively
seeking job placement must make the effort to: be in contact with an employer, have job
interviews, contact job placement agencies, send out resumes, submit applications,
respond to advertisements, or some other means of active job searching within the prior
four weeks. Simply looking at advertisements and not responding will not count as
actively seeking job placement. Since not all unemployment may be "open" and counted
by government agencies, official statistics on unemployment may not be accurate.[51]

The ILO describes 4 different methods to calculate the unemployment rate:[52]

• Labour Force Sample Surveys are the most preferred method of unemployment
rate calculation since they give the most comprehensive results and enables
calculation of unemployment by different group categories such as race and
gender. This method is the most internationally comparable.
• Official Estimates are determined by a combination of information from one or
more of the other three methods. The use of this method has been declining in
favor of Labour Surveys.
• Social Insurance Statistics such as unemployment benefits, are computed base on
the number of persons insured representing the total labour force and the number
of persons who are insured that are collecting benefits. This method has been
heavily criticized due to the expiration of benefits before the person finds work.
• Employment Office Statistics are the least effective being that they only include a
monthly tally of unemployed persons who enter employment offices. This method
also includes unemployed who are not unemployed per the ILO definition.

[edit] European Union (Eurostat)

distinguish between various types of unemployment, including cyclical unemployment,

frictional unemployment, structural unemployment and classical unemployment.[5] Some
additional types of unemployment that are occasionally mentioned are seasonal
unemployment, hardcore unemployment, and hidden unemployment. Real-world
unemployment may combine different types. The magnitude of each of these is difficult
to measure, partly because they overlap.

Though there have been several definitions of voluntary and involuntary unemployment
in the economics literature, a simple distinction is often applied. Voluntary
unemployment is attributed to the individual's decisions, whereas involuntary
unemployment exists because of the socio-economic environment (including the market
structure, government intervention, and the level of aggregate demand) in which
individuals operate. In these terms, much or most of frictional unemployment is
voluntary, since it reflects individual search behavior.

On the other hand, cyclical unemployment, structural unemployment, and classical

unemployment are largely involuntary in nature. However, the existence of structural
unemployment may reflect choices made by the unemployed in the past, while classical
(natural) unemployment may result from the legislative and economic choices made by
labor unions and/or political parties. So in practice, the distinction between voluntary and
involuntary unemployment is hard to draw. The clearest cases of involuntary
unemployment are those where there are fewer job vacancies than unemployed workers
even when wages are allowed to adjust, so that even if all vacancies were to be filled,
there would be unemployed workers. This is the case of cyclical unemployment, for
which macroeconomic forces lead to microeconomic unemployment.

[edit]

The following text needs to be harmonized with text in Frictional unemployment.

[edit]

For example, minimum wage laws raise the cost of labourers with few skills to above the
market equilibrium, resulting in people who wish to work at the going rate but cannot as
wage enforced is greater than their value as workers becoming unemployed.[7][8] They
believed that laws restricting layoffs made businesses less likely to hire in the first place,
as hiring becomes more risky, leaving many young people unemployed and unable to
find work.[8]

Some, such as Murray Rothbard,[9] suggest that even social taboos can prevent wages
from falling to the market clearing level.

Some economists theorize that this type of unemployment can be reduced by increasing
the flexibility of wages (e.g., abolishing minimum wages or employee protection), to
make the labor market more like a financial market.[citation needed]

[edit]

In contrast, Austrian economists argue that government spending and policies are the root
cause of economic cycles and cyclical unemployment and should be reformed or
removed.

Classical economics rejects the conception of cyclical unemployment, seeing the

attainment of full employment of resources and potential output as the normal state of
affairs.[citation needed]

[edit]

The following text needs to be harmonized with text in Structural unemployment.

Structural unemployment may also be encouraged to rise by persistent cyclical

unemployment: if an economy suffers from long-lasting low aggregate demand, it means
that many of the unemployed become disheartened, while their skills (including job-
searching skills) become "rusty" and obsolete. Problems with debt may lead to
homelessness and a fall into the vicious circle of poverty. This means that they may not
fit the job vacancies that are created when the economy recovers. Some economists see
this scenario as occurring under British Prime Minister Margaret Thatcher during the
1970s and 1980s. The implication is that sustained high demand may lower structural
unemployment. This theory of persistence in structural unemployment has been referred
to as an example of path dependence or "hysteresis".

Much technological unemployment (e.g. due to the replacement of workers by

machines) might be counted as structural unemployment. Alternatively, technological
unemployment might refer to the way in which steady increases in labor productivity
mean that fewer workers are needed to produce the same level of output every year. The
fact that aggregate demand can be raised to deal with this problem suggests that this
problem is instead one of cyclical unemployment. As indicated by Okun's Law, the
demand side must grow sufficiently quickly to absorb not only the growing labor force
but also the workers made redundant by increased labor productivity. Otherwise, we see a
jobless recovery such as those seen in the United States in both the early 1990s and the
early 2000s.

Seasonal unemployment may be seen as a kind of structural unemployment, since it is a

type of unemployment that is linked to certain kinds of jobs (construction work,
migratory farm work). The most-cited official unemployment measures erase this kind of
unemployment from the statistics using "seasonal adjustment" techniques.

[edit] Long-term unemployment

This is normally defined, for instance in European Union statistics, as unemployment

lasting for longer than one year. It is an important indicator of social exclusion.

[edit] Hidden unemployment

Hidden, or covered, unemployment is the unemployment of potential workers that is not

reflected in official unemployment statistics, due to the way the statistics are collected. In
many countries only those who have no work but are actively looking for work (and/or
qualifying for social security benefits) are counted as unemployed. Those who have given
up looking for work (and sometimes those who are on Government "retraining"
programmes) are not officially counted among the unemployed, even though they are not
employed. The same applies to those who have taken early retirement to avoid being laid
off, but would prefer to be working. The statistic also does not count the
"underemployed" - those with part time or seasonal jobs who would rather have full time
jobs. Because of hidden unemployment, official statistics often underestimate
unemployment rates.

[edit] Full employment

In demand-based theory, it is possible to abolish cyclical unemployment by increasing

the aggregate demand for products and workers. However, eventually the economy hits
an "inflation barrier" imposed by the four other kinds of unemployment to the extent that
they exist.

Some demand theory economists see the inflation barrier as corresponding to the An
alternative technical term for this rate is the NAIRU or the Non-Accelerating Inflation
Rate of Unemployment.

No matter what its name, demand theory holds that this means that if the unemployment
rate gets "too low," inflation will get worse and worse (accelerate) in the absence of wage
and price controls (incomes policies).

One of the major problems with the NAIRU theory is that no one knows exactly what the
NAIRU is (while it clearly changes over time). The margin of error can be quite high
relative to the actual unemployment rate, making it hard to use the NAIRU in policy-
making.

Another, normative, definition of full employment might be called the ideal

unemployment rate. It would exclude all types of unemployment that represent forms of
inefficiency. This type of "full employment" unemployment would correspond to only
frictional unemployment (excluding that part encouraging the McJobs management
strategy) and would thus be very low. However, it would be impossible to attain this full-
employment target using only demand-side Keynesian stimulus without getting below the
NAIRU and suffering from accelerating inflation (absent incomes policies). Training
programs aimed at fighting structural unemployment would help here.

To the extent that hidden unemployment exists, it implies that official unemployment
statistics provide a poor guide to what unemployment rate coincides with "full
employment".

Year Unemployment rate Rank Percent Change Date of Information

200
40.00 % 12 2002 est.
3
200
40.00 % 14 0.00 % 2002 est.
4
200
40.00 % 178 0.00 % 2004 est.
5
200
2.50 % 22 -93.75 % 2005 est.
6
200
2.50 % 23 0.00 % 2006 est.
7
200
2.50 % 27 0.00 % 2007 est.
8
200
2.50 % 27 0.00 % 2008 est.
9
201
2.50 % 19 0.00 % 2009 est.
0