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More than 60 per cent of people in Bangladesh with bachelor’s or higher degrees are being forced to take up informal jobs due to a lack of employment opportunities matching their qualifications, according to a 2026 World Bank report.
The findings were published in the World Bank’s report titled Demographic Change in South Asia: From Tailwinds to Headwinds for Development, unveiled at a programme at the Sonargaon Hotel in Dhaka on Tuesday.
The report says around 84 per cent of Bangladesh’s working population, or approximately 58 million people, are employed in the informal sector.
Their earnings are 45 to 84 per cent lower than those of workers in the formal sector.
Workers in the informal sector generally lack appointment letters, fixed wage structures and adequate legal protection, leaving them vulnerable to arbitrary dismissal by employers.
The report also highlights the slow pace of formal job creation in Bangladesh.
Employment in formal enterprises is growing at an annual rate of just 2.7 per cent, compared with an average of 5.4 per cent across 82 emerging economies.
It notes that 35 to 40 per cent of employment in medium and large enterprises in Bangladesh is also informal.
The World Bank warned that Bangladesh could become an ageing society before becoming wealthy if it fails to accelerate job creation, industrialisation and human capital development over the next two decades.
The country’s working-age population is projected to reach its peak in 2045, after which the proportion of elderly people will continue to rise.
The report also points to significant weaknesses in education, healthcare and social protection, urging greater investment in skills development, women’s participation in the labour market and formal employment.
