Islam 1980 Graduate Unemployment in Bangladesh A Preliminary Analysis

Graduate Unemployment in Bangladesh : A Preliminary Analysis
Author(s): Rizwanul Islam

Source: The Bangladesh Development Studies , Autumn 1980, Vol. 8, No. 4 (Autumn
1980), pp. 47-74
Published by: Bangladesh Institute of Development Studies
Stable URL: https://www.jstor.org/stable/40794301
JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide
range of content in a trusted digital archive. We use information technology and tools to increase productivity and
facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.
Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at
https://about.jstor.org/terms
Bangladesh Institute of Development Studies is collaborating with JSTOR to digitize, preserve

and extend access to The Bangladesh Development Studies
This content downloaded from

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
All use subject to https://about.jstor.org/terms
Graduate Unemployment in Bangladesh :
A Preliminary Analysis
by
Rizwanul Islam*
Unemployment of the graduates is becoming a serious problem in

Bangladesh. And the problem cannot be dismissed as a mere job-search
phenomenon. Analysis in this paper indicates that the phenomenon can be
explained by the simultaneous operation of forces acting from both the
demand and supply sides and a less than perfect operation of the labour
market for graduates. Employability appears to be an important factor
affecting the demand for graduates as there is support for the existence of
a systematic relationship between the incidence of unemployment and the
relevance of education for the jobs available. Thus a kind of structural
imbalance does seem to exist in the labour market for graduates. The
problem is further aggravated by the type of expectations that is generated
amongst the graduates by the content of curricula, environment of the
educational institutions, the incentive structure in the labour market and
the whole system in general. The ultimate result is a mass production of
graduates, a large number of whom are not wanted by the labour market.
I. INTRODUCTION
Unemployment amongst the educated has assumed disquietin

in many LDCs, and Bangladesh is no exception. An estimate referr
shows the rate of unemployment amongst educated job-seekers ( d
economically active persons with Secondary School Certificat
qualifications) to be about 44 per cent.1 And there is no evidence t
the situation has not aggravated since then. It is of course poss
rate of unemployment amongst the educated varies with the level o
* The author is currently associated with the Asian Regional Team for Em-
ployment Promotion, ILO- ARTEP, Bangkok, Thailand. This paper is based on
some of the results represented in a forthcoming publication of the International
Institute for Educational Planning, Paris. The surveys were carried out by the
Foundation for Research on Educational Planning and Development, Dacca. He i
grateful to the Foundation for providing access to the filied-in questionnaires. The
responsibility for the present paper, however, lies solely with him.
1 See pj.

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
48 The Bangladesh Development Studies
Evidence is also available from other countries to su

an inverted U-shape between unemployment and ed
much is known about Bangladesh in this respect, t
are known to be a major problem group in the Sout
from sheer magnitude, unemployment amongst gradua
waste of resources and should therefore receive careful
Several explanations of the phenomenon of unem

educated are now available in the literature. Coo
emphasizes on the disparities in the rates at which
for educated manpower are growing in many LDCs.
hand, stresses the lag in the speed at which wages
persons adjust to clear the market. According to h
amongst the educated is more the result of an adj
unemployed take jobs. In contrast, Myrdal [ 8 ] em
of the educated towards manual jobs and the cultu
for such an attitude as explanations for their une
explanations, however, concentrate on particular asp
thus can provide only a partial understanding of
comprehensive analysis would bring together all these
some others which can be important. The task, however, is rendered
difficult at present by a lack of sufficient empirical knowledge of the situation.
Clearly, more light needs to be thrown on the problem of graduate unemploy-
ment in order to increase the manpower planner's understanding of the
situation. While no comprehensive analysis of the problem is aimed at in
the present paper, its purpose is only to contribute to the knowledge base on
which a fuller explanation of the problem can be built.
The paper starts by looking at the incidence of unemployment among

various groups of graduates. It then goes on to analyse some factors
which can affect the employment of graduates from the demand and the
upply sides. It also makes an attempt to look at the problem of unemploy-
ment as perceived by the unemployed graduates themselves. The major
findings of the paper are brought together in the concluding section in an
effort to build up possible explanation(s) for the problem of graduate
unemployment.
2 See, for instance, [ 6 ; 10 j.
3 It has, of course, been argued that such attitudes are not mere prejudices, but the
reflection of a realistic appraisal of actual prospects in the job market. See Foster [4j.

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
Islam : Graduate Unemployment in Bangladesh 49
II. HYPOTHESES TO BE TESTED AND THE DATA
While the incidence or the rate of unemployment is by itself interes

an examination of the variation in the incidence between different
( identifiable by sex, area of residence, specialization ) of graduate
provide useful insight for an understanding of the problem. It may the
be interesting to test the following two hypotheses.
First, the incidence of unemployment varies between graduates of diff

sexes and origin ( viz., rural and urban ).
Second, the incidence of unemployment varies among gradua

different specializations.
Similarly, an examination of the waiting period involved before gett

job for different groups of graduates may provide useful hints for an em
hypothesis about the phenomenon of unemployment. This hypothesi
to indicate that unemployment for some groups at least is merely a job
phenomenon and much of the waiting reported is voluntary.4 In the ab
of any direct evidence on the nature of waiting in our study, we ca
make an indirect guess about this nature from the relationships be
waiting and other variables like the family income, area of residen
specialization of the graduates. For example, the waiting involved in the
of graduates from lower income groups or from rural areas could not p
have been voluntary. On the other hand, the waiting reported by gr
from such specializations as engineering, agriculture and medicine must
been largely voluntary, aimed at getting the job commensurate wit
qualifications. The hypothesis we would like to test, therefore, is
variation in the waiting period reported by different groups of gr
provides support to the contention that their unemployment is lar
job-search phenomenon.
Employment of- graduates may be affected by factors working from

the demand and the supply sides. On the demand side, 'employabi
often said to play a key role in the employment of graduates. Relev
the education received for the jobs available in the market can be an imp
factor affecting the employability of the graduates. The education r
can be relevant for a job in two ways : (i) helping a graduate with a par
specialization in getting a specific job, and (ii) helping a graduate
4 See Mulat 1 7 J. Also compare with Blaug's view that the pool of unem
educated is a revolving queue in which an individual may be unemployed for t
three years while searching for the best available job opportunity. See Blaug I 2 j

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
performing the job which his education has ena

hypotheses that need to be tested are : (a) the tr
graduates does not help them get the jobs availa
received is not useful in performing the jobs tha
relevant qualification may get.
That the labour market does not need the kind

the educational system of the country may also b
correspondence between the specialization and th
graduates. The degree of such correspondence ma
graduates of different specializations. A correlat
and the rate of unemployment would indicate th
important in explaining unemployment for som
therefore, be interesting to test the hypothesis tha
dence between the specialization of graduates an
varies between specializations.
On the supply side, students are often thought to

tions about career, wrong notions about the em
graduates, and unrealistic expectations about the
and salary. It is of course possible that a lack of
labour market for the educated and the non-avail
for students may result in such wrong perceptions an
The ultimate result may be a crowding of special
particularly high demand in the labour market and
market to meet the expectation of the graduates
test the following three hypotheses.
First, students have unrealistic expectations about

Second, students have wrong perceptions about th
for graduates with different specializations.
Third, students have unrealistic expectations a

and salary.
Finally, the perception of the unemployed graduates themselves about

their employment problem may provide us with an useful insight into the
problem. In the process of job-search it is possible for them to have obtained
some understanding of the difficulties involved. It is, however, quite likely
that the perception of the unemployed graduates may contain an element of
personal bias, and they may have a tendency to put the major blame on how
labour market information is disseminated, the method and criteria ofr ecrui>

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
islam : Graduate Unemployment in Bangladesh Si
ment used, and so on to the neglect of other supply-demand factors. Bu
may be possible to cross-check the responses obtained with more objec
information on the relevant variables. Thus the hypothesis we would like t
test is : the unemployed graduates see the problem of unemployment large
as a phenomenon of labour market imperfection. In addition, of course
would like to examine whether such imperfections are reflected in the sou
of information about job opportunities and the recruitment criteria used b
various employers.
Data used in this paper for testing the hypotheses mentioned above were
generated through sample surveys5 carried out by the Foundation for Rese
on Educational Planning and Development (FREPD), Dacca. There were
surveys- one for students and the other for graduates. The students' surve
covered 681 students from various institutions offering degrees. The graduat
survey attempted to cover the same respondents ; but a reasonable time per
was allowed to elapse between their examinations and the second surve
that information about the length of waiting period for a job and the incide
of unemployment amongst graduates could be obtained from this latter surv
Response could, however, be obtained only from 331 graduates (including th
unemployed).
III. THE INCIDENCE OF UNEMPLOYMENT AND THE

WAITING PERIOD FOR JOBS
Some Notes about the Data
The survey of graduates provides the necessary data for this se

few notes of caution about the limitations of this data may be useful
going into a discussion of the results. We have already mentioned
survey is a follow-up of an earlier survey of students. And out
students covered by this earlier survey response was received only fro
when they had become graduates. The rate of response for the g
survey was thus rather modest. It could be argued that in a survey lik
non-response is likely to be higher for the employed graduates, for t
employed must have responded in larger numbers in the hope of derivi
benefit ultimately. If this is true, the unemployed graduates must hav
represented themselves in the sample. This factor coupled with th
size of the sample should make one cautious about placing too much co
on the data about the incidence of unemployment. Variation in the m
between different groups rather than the overall magnitude should be
more attention here.
5 Methodology used for these surveys is described in the appendix.

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
Second, the large non-response could have intro

information relating to graduates. It is, however,
direction or magnitude of such bias. We can, there
reader about such possibilities.
The Incidence of Unemployment Among Various Group

Table I shows the rate of unemployment amongst
sexes, areas of residence and levels of family in
331 graduate respondents 155 reported tobe unemp
survey, thus giving an unemployment rate of nearly
consider the possibility of an over-representation of
the sample ( for reasons mentioned above ), the rate o
to be quite high.
The incidence of unemployment appears to be h
graduates and those of urban residence. It is, of c
large part of the female graduates who reported th
has not been looking for work at all or at least no
counterpart would do. The questionnaire had no wa
TABLE I
DISTRIBUTION OF UNEMPLOYED GRADUATES BY SEX, AREA OF

RESIDENCE AND THE LEVEL OF FAMILY INCOME
Number of Number of Í
Category Graduate Unemployed Percentage
Respondents Graduates | Unemployed
Sex
Male 284 123 43.31
Female 47 32 68.09
Area of Residence
Rural 246 113 45.93
Urban 85 42 49.41
Family Income
Upper 121 51 42.15
Upper-middle 98 52 53.06
Lower-middle 85 40 47.06
Lower 27 12 44-44
Total 331 Í55 46.83
Source : Graduates' Survey

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
thus a large part of unemployment among female graduates m

voluntary nature. But it is also true that the range of alternatives a
to women job-seekers in the Bangladesh situation is much more limi
it is not surprising to find a higher rate of unemployment amo
graduates.
It is, however, a bit difficult to explain the higher rate of unemployment

for urban graduates. It is possible that they are in a more advantageous
position to wait and search for jobs and hence may prefer to remain unem-
ployed rather than accept a job which does not suit their qualifications or
match their expectations.
One would have also expected a positive relationship between the level
of family income of the graduates and the rate of unemployment. The
reasoning would be that with their greater staying power the graduates of upper
income families could afford to remain unemployed more easily rather than
accept a job below their expectations. Those from lower income groups on
the other hand are likely to be compelled to accept whatever they get rather
than remain unemployed.6 But the data presented in Table I do not show
any strong relationship between the rate of unemployment and family income
of the graduates- the highest income group showing the lowest rate of unem-
ployment. After this group, however, the relationship looks more systematic.
Variation in the rate of unemployment among graduates of different

specializations is quite remarkable. While none of the medical graduates
were unemployed, only 3 per cent of the engineering graduates reported to
be unemployed. On the other hand, graduates specializing in management,
commerce and arts reported very high unemployment rates of 87, 81 and 76 per
cent respectively. The incidence of unemployment also appears to be quite
high among graduates of general science and social science subjects. These
findings are of course consistent with our common knowledge about the labour
market situation in Bangladesh. The pattern revealed by Table II · is also
consistent with the level of development of the economy and manpower needs
in Bangladesh.
6 This type of reasoning gets some indirect support from the fact that the average
actual income of the employed graduates is positively related to their family income*
See Section V,

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
TABLE II
DISTRIBUTION OF UNEMPLOYED GRADUATES BY SPECIALIZATION
Number of Number of
Specialization Graduate Unemployed Percentage
I Respondents Graduates | Unemployed
Agriculture 77 15 19.43
Arts 63 48 76.19
Commerce 21 17 80.95
Economics 9 3 33.33
Engineering 33 1 3.30
Law 10 4 40.00
Management 8 7 87.50
Medical 8 0 0
Science 74 44 59.46
Social Science 28 16 57.14
Source : Graduates' Survey
The Waiting Period for J
Only 35 per cent of th

their job-search start
support the hypothesis
period between graduate
The percentage of grad
for getting a job is abou
The corresponding perce
lower income families.
graduates of rural origin
that needed by graduat
cannot, therefore, say th
voluntarily wait longer p
jobs seems to be universa
This does not provide mu
unemployment is largely
for Blaug's view of the
graduates may have to w
in this wating is doubtful

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
Islam : Graduate Unemployment in Bangladesh 5$
TABLE III
DISTRIBUTION OF GRADUATES BY THE WAITING PERIOD FOR A JOB
|
Category of Graduates
τ Less tha
3 Months Months 6 Months Unemployed dl
Area of Residence
Rural 72 13 40 113 246
(29.27) (5.29) (16.26) (45.93)
Urban 22 8 11 42 85
(25,88) (9.41) (12,95) (59.41)
Family Income
Upper 38 9 17 54 121
(31.41) (7.44) (14.05) (44.63)
Upper-middle 23 3 14 51 98
(23.47) (3.06) (16.32) (52.04)
Lower-middle 25 7 14 38 85
(29.41) (8.24) (16.48) (44.71)
Lower 8 2 4 12 27
(29.63) (7.41) (14.81) (44.44)
Specialization
Agriculture 29 7 21 15 77
(37.66) (9.09) (27.28) (19.48)
Arts 9 2 2 48 63
(14.28) (3,17) ( 3.18) (76.19)
Commerce 3 0 0 17 21
(14.28) (80.95)
Economics 6 0 0 3 9
(66.67) (33.33)
Engineering 6 3 23 1 33
(18.18) (9.09) (69.69) ( 3.30)
Law 3 114 10
(30.00) (10.00) (10.00) (40.00)
Management 1 0 0 7 8
(12.50) (87.50)
Medical 7 0 1 0 8
(87.50) (12.50)
Science 18 8 3 44 74
(24.33) (10.81) ( 4.05) (59.46)
Social Science 12 0 0 16 28
(42.86) (57.16)
All Groups 94 21 51 155 331
(28.40) (6.35) (15.40) (46.83)
Note : ♦ The individual columns may not add up to the total becaus
not provide any answer to this question are not included here. T
within parentheses represent percentages of the row totals,
Source : Graduates* Survey.

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
Further support for this thesis of revolving queue is

part of Table III where we show the distribution o
zation and the waiting period for jobs. Only one o
graduates had to wait more than six months for a
to note that although the incidence of unemployment
for engineering graduates, more than 70 per cent of th
than six months. Similarly, 46 per cent of the agri
wait for more than six months, although the unempl
them also. This only shows that graduates experienc
ment irrespective of their specialization. The duration
may of course be quite long for graduates with some
commerce, management in the case of Bangladesh ( se
IV. THE EMPLOYMENT OF GRADUATES ;

SOME DEMAND PROBLEMS
The Relevance of Education for Jobs
The relevance of the training imparted by the educational institut

the world of work can have an important impact on the employabili
graduates and consequently on the demand for them. In this con
necessary to answer two questions : (i) how useful is the educatio
by the graudates for obtaining the jobs available ? (ii) how usef
education for performing the responsibilities associated with jo
employed graduates were asked both these questions ; and the r
presented in Tables IV and V.
On the first question, the employed graduates were asked to indicat
amongst given responses ) the degree of importance of their spe
in obtaining their present job. Nearly two* thirds of them thought
specialization they pursued was 'very much helpful' in getting th
1 1 per cent of them thought their specialization to be of no use in
the job. Looking at the variation in the response pattern, we se
the medical graduates and more than 80 per cent of the engine
agriculture graduates mentioned their training as very much helpfu
ing their present job. It is interesting to remember that these are
specializations for which incidence of unemployment is the lowe
other extreme, only one-fourth of the commerce and social science g
gave similar response. And it may also be recalled that the rate of un
ment is quite high for graduates with these specializations,

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
TABLE IV
DISTRIBUTION OF EMPLOYED GRADUATES BY SPECIALIZATION

AND THEIR OPINION ABOUT THE USEFULNESS OF THE
SPECIALIZATION IN GETTING THE JOB
<5neeift1i7atinn Specialization I Verv Μ"ς1* Moderately ι Not at all Unknown UnKnown I

<5neeift1i7atinn Specialization [ I Helpful Helpful | Helpful | Unknown UnKnown I | Total Total
(80.66) (16.13) (3.23) (100.00)
Arts 5 7 3 0 15
(33.33) (46.67) (20.00) (100.00)
Commerce 1 1 2 0 4
(25.00) (25.00) (50.00) (100.00)
Fxonomics 3 3 0 0 6
(50.00) (50.00) (100.00)
(84.38) (15.62) (100.00)
Lav/ 3 1 2 0 6
(50.00) (16.67) (33.33) (100.00)
Management 0 1 0 0 1
(100.00) (100.00)
Medical 8 0 0 0 8
(100.00) (100.00)
Science 14 8 7 1 30
(46.67) (26.67) (23.33) (3.33; (100.00)
(25.00) (50.00) (25.00) (100.00)
Total Π4 42 19 1 176
(64.77) (23.86) (10.80) (0.57) (100.00)
Note : Figures within parentheses represent percentages of row tot
Source : Graduates' Survey.
On the second question ( i e., about the usefulness of the education

received in performing the job ), 59 per cent of the employed graudates
considered their specialization to be «very much helpful', while only 10
per cent of them thought it to be of no use in performing their present
job. Here again, there is considerable variation in the response pattern
between graduates with different specializations. At the one extreme, all
the medical graduates mentioned their specialization to be very much helpful
while at the other, none of the management graduates did so. Similarly,
a higher proportion of the agriculture and engineering graduates (nearly
73 and 72 per cent respectively) mentioned their specialization to be very

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
much helpful in performing their job. On the other

and 25 per cent of arts, commerce and social science g
provided similar response. It is interesting to note t
the response pattern is also very much consistent with t
of unemployment among graduates from different specia
It is clear from these results that the relevance of education for the
jobs available in the market does have a positive impact on the demand
for graduates. This increases their employability and consequently, reduces
the incidence of unemployment amongst them* The hypothesis that the
TABLE V
DISTRIBUTION OF EMPLOYED GRADUATES BY SPECIALIZATION

AND THEIR OPINION ABOUT THE USEFULNESS OF THE
TRAINING RECEIVED IN PERFORMING THE JOB
<?n*rîflli7sirinn specialization Very Much I Moderately Not at all ΐτηΐΛ«Λ™,« Unkn0WI* Ι τΛ#Λι T
<?n*rîflli7sirinn specialization Helpful Moderately Helpful Helpful 1 ΐτηΐΛ«Λ™,« Unkn0WI* Ι τΛ#Λι Total
(72.58) (19.35) (6.45) (1.61) (100.00)
Arts 3 9 2 1 15
(20.00) (60.00) (13.33) (6.67) (100.00)
Commerce 1 2 10 4
(25.00) (50.00) (25.00) (100.00)
Economics 4 2 0 0 6
(66.67) (33.33) (100.00)
(71.88) (25.00) (3.12) (100.00)
Law 3 1 2 0 6
(50.00) (16.67) (33.33) (100.00)
Management 0 1 ο ο 1
(100.00) (100.00)
Medical 8 0 0 0 8
(100.00) (100.00)
Science 14 10 5 1 30
(46.67) (33.33) (16.67) (3.33) (100.00)
(25.00) (50.00) (16.67) (8.33) (100.00)
Total 104 51 17 4 176
(59.09) (28.98) (9.66) (2.27) (100.00)
Note : Figures within parentheses represent percentages
Source : Graduates' Survey,

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
talam : Graduate Unemployment in Bangladesh 59
training received by the graduates is not helpful in obtaining or per

a job is not generally true. In cases where it is true, unemploy
is also high.
Further support for this conclusion is provided by data on th
pondence between specialization and actual occupation (see Table
assessment of the degree of correspondence between specialization an
occupation can, however, be quite difficult in some cases. For spe
like engineering, medical, agriculture, law, etc., it is simple to d
the corresponding occupation. But in the case of general science
or graduates of arts, economics and other social sciences, it is
to determine what should be the most appropriate occupation. Ne
a look at the specialization-occupation matrix presented in Tabl
enable one to draw at least some broad conclusions.
Of the 32 engineering graduates who are employed, only 2 (i.c , 6 per

cent) reported a different occupation. All the medical graduates are employed
in the same profession. Similarly, more than 75 per cent of the agriculture
graduates who are employed reported to be in occupations closely related
to their specialization. Thus, the degree of correspondence between speciali-
zation and actual occupation appears fairly high in the case of medical,
engineering and agriculture graduates.
For science graduates, it is difficult to say which jobs correspond well

to their specialization, especially when occupations have been so broadly
categorised as in Table VI. But one can easily argue that occupations
like defence, banking, general public service, private executives, other private
services, etc. do not correspond very well to the qualifications of science
graduates. If this line of reasoning is acceptable, then we see from Table VI
that nearly half the science graduates are in occupations which do not
correspond well with their education. Similarly, none of the law graduates
are in the judicial service. Thus the degree of correspondence between
specialization and actual occupation appears very low in the case of science
and law graduates,
Finally, a good range of occupations may be considered to correspond
well with the educational background of arts, economics and other social
science graduates. Looked at from this point of view, data in Table VI
do not indicate too great a divergence between specialization and actual
occupation in the case of these graduates.
It thus follows that the degree of correspondence between specialization

and actual occupation does vary between graduates with different special!-

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
The Banzladesh Deveîomnènt Stwlfca
Ζ,
Ο
ϊ |1| ° « ξ. |o ο ο ο ο ο ο 5J f
i
< V3 w CM -ν
"ϊ β· δ- ^ w ϊ
υ
<
|_ -|° ° c c ° « -| β ο Nf
i 1 §
|οβ»»|οοοβββ w^
I S I
> eu
1.1
< |I| ° ° ° « « « "ÖO ο ο „ft
g O__W <£, ο
III «!© wfo oo ο ο ο ο „f

Χ> #S Λ W 00 CO
g
5|g«ge - ». ο β-8.«8,«δβ - « β f
_£«? ^ ο «si? é2é β
Ρ""·! ·=> β ' ° © ο

I
«β
i .1 s . ä
Ι ι 1 Ι ι II i ?
Q
I I I I i il l a i 1 I

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
Islam: Graduate Unemployment in Bangladesh 61
*c3| θ0^4θ€ΜΟΟΟΟ-^Οτ^ΟΐηθςθΟ(Χ>0 0.|0 CD Ο

# m 8^^ w I ** 8 § 8 8 ~ 8 S I " I - i
>^ ^/ »w' W' '^/ S-^ 'W' V-^ v**/ N>-''
CD
W4
I « >-•>-/
g
Λ !
δ Ι
XL co ^
<U ^ CO o ο O O C· Ο Ο Ο ο -ΙΟ
I Ë.
•S
«TC ~ S*
3
«ο 2
3 « «TC § .. S ~
ο !·|·| .. ê <
1 |*fl 's
LU
CO
52·§
S «η 5^° f
-3ο -
° °δ °- 8.
«> β 2 ° *S8.
S - S^S
8
t$ - ζ * ~ ~ &
Ills ρ * § s ε U d
~~ΓVV /«X
/«X y*^
y*^^ ^*
^ ^^*
f^,,^ -f^,,
|-^ - ·""■
|-^ 5> ^ a ^
·""■ ,- ··
11 a * δ *
«Ο (Λ Ό
tí ** ο ^> λ
•Β tí II Ι« 8 Ι |θ
S „ ö | -a S s i w Ε ..
1 1 ι î Ι ι Ι δ % S 1 ι ϋ 1

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
zations. And this variation is consistent with that in the incidence of

unemployment. The rate of unemployment is lower in those cases wher
specialization corresponds well with the actual occupation of the graduates.7
The results of this section support the existence of a systematic rela

tionship between the incidence of unemployment on the one hand and th
relevance of education for the jobs available and the correspondence between
specialization and actual occupation on the other. This in turn indicates
that the demand problem can be important in explaining the employmen
problem of graduates in Bangladesh. Some kind of structural imbalance
does seem to exist in the labour market for the graduates ; the education
system is simply producing some types of graduates who are not neede
by the labour market.
V. THE EMPLOYMENT OF GRADUATFS I SOME SUPPLY PROBLEMS
Problems on the supply side may arise from unrealistic expectatio

of the students and graduates about career, inadequate information ab
the labour market leading to wrong notions about the employment prospe
of graduates, and unrealistic expections about the characteristics of a
salary, etc. In this section we shall examine each of these issues.
The number of graduates who succeeded in getting their expected occup

tion can give us an idea of how realistic their expectations are in
respect. Table VII gives this information for different occupations. W
see from this table that only 31 graduates have been successful in get
their expected occupation ; and they represent less than 18 per cent
the employed graduates. Table VII reveals some other interesting asp
about the expectation of graduates.
First, as many as 283 graduates (i.e., 85 per cent of the total) expec
to get some job in the public sector, although only 10 per cent of th
succeeded. The preference is thus not only for white collar jobs but o
whelmingly for the public sector. But the small number of successful gradu
only indicates the low absorptive capacity of the public sector.
Second, even within the public sector, the expectation is predominan

for superior administrative positions and places in the government educati
'This conclusion, however, does not apply equally to the arts and social scie
graduates.

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
islam : Graduate Unemployment in Bangladesh 63
TABLE VII
DISTRIBUTION OF GRADUATES BY SUCCESS IN GETTING THE

EXPECTED OCCUPATION
No. of Graduates No. of Graduates who

Occupations who Expected this Actually get this
^^
Public Sector
Superior administration 99 0
Foreign service 31 0
Judicial service 6 0
University teaching 58 4 ( 6.90)
Government education 38 0
Engineering 17 13 (76.47)
Medical 7 6 (85.71)
Defence 8 1 (12.50)
Agricultural specialist 11 4 (36.36)
Others 8 0
Sub-total 283 28 ( 9.89)
Private Sector
Private executive 5 0
Other private service 3 1 (33.33)
Private education 1 1(100.00)
Others 2 1 (50.00)
Sub-total 11 3 (27.27)
Self-Employment
Agriculturist 3 0
Trade 3 0
Manufacturing 1 0
Others 1 0
Sub-total 8 0
Inappropriate or no answer 29
Grand Total 331 31
Note : Figures within parentheses express the figures in the second column as
percentage of those in the first.
and foreign service. Although as many as 168 graduates expected to get

either of these occupations, none succeeded.
Third, only 11 graduates expected to get private sector jobs and 3 of

them succeeded.

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
Fourth, although a small number of the graduat

self-employed, none of them has been able to do so.
On the whole, these facts support the hypothes

unrealistic expectations about their career.
Are these unrealistic expectations generated by a

students and graduates about the employment prospec
zations ? Table VIII may provide the answer to this qu
were asked to mention the specialization they cons
employment prospects. And each respondent was a
twice - once when he was a student and again when he
The results presented in Table VIII indicate that t
change much as the students graduate and enter t
largest number of respondents (both as students an
TABLE VIII
PERCEPTION OF STUDENTS AND GRADUATES ABOUT THE EMPLOYMENT

PROSPECTS FOR VARIOUS SPECIALIZATIONS
No. of Students who Consider No. of Graduates who Con-

Specializations this to have the best sider this to have the best
Agriculture 56 (17.13) 27 ( 9.54)

Arts 5 ( 1.53) 3 ( 1.06)
Business administration 12 ( 3.67) 9 ( 3.18)
Commerce 15 ( 4.59) 5 ( 1.77)
Economics 6 ( 1.83) 8 ( 283)
Engineering 41 (12.54) 55 (19.43)
Medical 148 (45.26) 147 (51.94)
Pharmacy 9 ( 2.75) 3 ( 1.06)
Science 7 ( 2.14) 7 ( 2.47)
Social science 7 ( 2.14) 4 ( 1.41)
Technical education 20 ( 6.12) 14 ( 4.95)
Others 1 (.0,31) 1 ( 0.36)
Total* 327 (100.00) 283 (100.00)
Note: *The column totals do not add u

appropriate or no answers to the relev
this table. The figures within paren
totals.
Soufce : Graduates' Survey and Students' Survey,

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
medical graduates as having the best employment prospects.

specializations which they consider to have good employment
engineering and agriculture. Since the incidence of unemploymen
to be the lowest in the case of these three specializations, students
seem to have correct perception about the labour market situ
employment prospects of different specializations. Thus the
expectation of graduates about career cannot be said to have b
by wrong notions about the labour market situation. It is pr
the environment of the educational institutions, the content of t
and the system in general gear the expectation of students i
way regardless of the signals provided by the labour market
prevailing incentive structure may contribute further to the buil
such expectations.
Do the students have unrealistic expectations about job char

also ? From a given set of characteristics students were aske
(as many as they wanted) those which they expect from a job. In
ponses were obtained and they are distributed as in Table IX. I
TABLE IX
DISTRIBUTION OF RESPONSES ABOUT THE EXPECTED CHARACTERISTICS

OF A JOB BY THE FAMILY INCOME LEVEL OF STUDENTS
Ma^ |as.|ga IËS lass I <■£.

Good salary 17 55 47 61 180
(21.52) (23.71) (16.61) (18.43) (19.48)
Prestige 33 86 127 137 383
(41.77) (37.07) (44.88) (41.39) (41.41)
Good service conditions 18 41 55 65 180
(22.78) (17.67) (19.79) (19.64) (19.46)
Prospects for promotion 6 15 15 14 50
( 7.59) ( 6.47) ( 5.30) ( 4.23) ( 5.41)
Security 0 22 19 22 63
(0.00) ( 9.48) ( 6.71) ( 8.65) ( 6.81)
Others 5 13 19 32 69
( 6.33) ( 5.60) ( 6.71) ( 9.67) ( 7.46)
Total 79 232 283 331 925
Note : Figures within par

Source; Students' Suj-ve

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
been natural for them to expect good earnings, securi
prospects for promotion from a job. But interestingly
per cent) of responses are associated with 'pres
expected of a job. Of course, nearly 20 per cent of th
earnings and service conditions to be the expected cha
Table IX also classifies the responses by the income

But for all income groups, prestige seems to be th
of a job.
This also explains our earlier results about the career expectations of gra-
duates. Graduates see their education primarily as a vehicle for achieving social
prestige and upward mobility in a society characterised by class differentiation.
This is clearly demonstrated by the fact that students from lower income fami-
lies also consider prestige to be the most important characteristic a job should
possess.
TABLE X
AVERAGE EXPECTED AND ACTUAL INCOME OF GRADUATES

( amounts in Taka )
Category of I Expected Actual Actual as a

Graduates Income a Income b Expecfed
Sex
Male 926 733 79.19

Female 871 606 69452
Area
Rural 906 674 74.42
Urban 953 889 93,22
Family Income
Upper 947 798 84.22
Upper-middle 894 714 79.84
Lower-middle 919 655 71.23
Lower 854 621 72.68
All Groups 918 722 78.65
Note : » Expected income has bee

b Actual income has been calcula

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
Finally, let us sec how realistic arc lhe expectations of gradu

earnings. From Table X we see that on an average the graduates earn
less than 80 per cent of what they expected. There is however an interesting
variation in the divergence between expectation and reality between various
groups of graduates. The divergence is greater for female graduates, and
for those of rural origin and from lower income families. But this docs
not mean that these graduates expect higher income than do others. On
the contrary, they expect lower incomes compared to their counterparts
(i.e., males, those from urban areas and upper income groups). In fact,
it is clear from Table X that the average actual income is higher for
male graduates, those of urban origin and from higher income families.
While an analysis of the determinants of the earnings of graduates is beyond
the scope of the present paper8, Table X indicates that sex, area and family
background of the graduates can be important determinants of income.
The correspondence between expected and actual earnings can depend

on two sets of factors : how accurately one can assess the situation in the
job market and how much success one can achieve in getting the kind
of job one desires. Both of these factors can vary between males and
females, between graduates of rural and urban origin and between those
coming from different income classes. The jobs for graduates are almost
entirely in the modern sector and are located in the urban areas. Those
with an urban background are, therefore, likely to have a better assessment
of the job market. Moreover, they are in a better position to search
for jobs and have a greater staying power to wait for the kind of jobs
they desire. An examination of the actual nature of jobs of the employed
graduates showed that many of those of rural origin are in fact under-
employed in low-paid jobs. It is thus quite natural to find that not only
the average earnings of the rural graduates are lower, the degree of
correspondence between expected and actual income is also lower for them.9
Second, it is not difficult to agrue that male graduates are likely to

have a better assessment of the job market and a greater ability to find
out the right kind of job for them. The latter is more likely because
in the social reality of Bangladesh, not all kinds of jobs are acceptable
to the female job-seekers who usually prefer jobs in the public sector,
8 For such an analysis, see [5],

9 Access to jobs with higher earnings may be limited for graduates of rural origin
simply because of the employers' preference (however irrational that nlay be) for urban»
based graduates.

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
those involving shorter hours and lower intensity of

that these are the jobs associated with low earnings.
Third, the graduates from upper income families, with
and knowledge of the market may be in a better po
paid jobs.
On the whole, however, the expected income of graduates other than
those of urban origin and higher income families appear to be substantially
greater than what they can actually earn.
VI. THE PROBLEM OF UNEMPLOYMENT AS PERCEIVED

BY THE UNEMPLOYED GRADUATES
In order to find out how the. unemployed graduates view the

of unemployment, several factors which could be responsible for th
were placed before them and they were asked to indicate as man
as they considered relevant for themselves. In all, there were 24
from 155 unemployed graduates. Table XI shows the distribution of
TABLE XI
DISTRIBUTION OF THE RESPONSES OF UNEMPLOYED GRADUATES ACCOR-

DING TO FACTORS MENTIONED AS RESPONSIBLE FOR UNEMPLOYMENT
Reasons for Unemployment I Number of Responses

1. Selected the worng specialization 35 (14.11)
2. Absence of an influential guardian 90 (36.2 9)
3. Job-search too expensive 22 ( 8.87)
4. Did not get the preferred job 50 (20.16)
5. Labour market too competitive 49 (19.76)
6. Others 2 ( 0.81)
Total ~ 248 (100.00)
Note : Figures within parentheses re
It is seen from this table that more responses are associated with the
reason described as 'absence of an influential guardian.' Apparently important
factors like 'labour market too competitive' and 'selected the wrong speciali*
zation' ranked third and fourth according to thé number of responses
associated with various factors. This implies that the unemployed graduates

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
Islam : Graduate Unemployment in Bangladesh 6ί>
place more emphasis on the imperfect operation of the lab

(possibly, imperfections in the dissemination of information and p
for recruitment) than on simple supply-demand factors as being r
for their failure to become employed.
An examination of the sources from which the employed gr

their job information and the method used for recruitment
some support to the view of the unemployed graduates. W
the employed graduates got information through employment exc
per cent of them got it through friends and relations and ot
However, 35 per cent of them got information through new
the case of private sector, friends and relations and other sour
information to 84 per cent of the employed graduates (see Table X
TABLE XII
SOURCES OF INFORMATION ABOUT THE PRESENT JOB

OF THE EMPLOYED GRADUATES
Source Sector | Sector
Newspaper advertisements 88 5 0 93
(68.76) (11.36) (0.00) (52.84)
Employment exchange 0 0 0 0
Friends and relations 7 17 1 25
( 5.47) (36.36) (33.33) (13.64)
Others 27 21 2 50
(21.09) (47.73) (66.67) (28.98)
No response 6 2 0 8
( 4.69) ( 2.55) (0.00) ( 4.55)
~ToTaï ~~ "Ϊ28 ~~ 45 ~ 3 176
(100.00) (100.00) (100.00) (100.00)
Note : Figures within parentheses represent percentages of column totals.
So far as the method of recruitment is concerned, 18 per cent

to have been 'personally selected'. In the case of graduates empl
the private sector, this category accounts for 43 per cent of the
(see Table X11I).

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
TABLE XIII
METHOD OF RECRUITMENT OF THE EMPLOYED GRADUATES
Methods Methods Public Private Other ι Tof Totdl Τ

Methods Methods
Examination by the Public Service 7 0 0 7
Commission ( 5.47) (0.00) (0.00) ( 3.98)
Written examination by the employer 27 3 1 31
(21.09) ( 6.82) (33.33) (17.01)
Oral examination by the employer 70 22 2 94
(54.69) (17.73) (6C.G7) (53.41)
Personally selected by the employer 12 19 0 31
( 9.38) (43.18) (0.00) (17.01)
Others 12 1 0 13
( 9.37) ( 2.27) (0.00) ( 7.39)
Total 128 44 3 176
(100.00) (100.00) (100.00) (100.00)
Note : Figures within parentheses represent percentages of column totals.

It is thus clear that both in the dissemination of information about

job and in the process of recruitment, non-formal channels and procedures
are widely used, particularly in the private sector. This provides an explanation
as well as some support to the unemployed graduates' view that an influential
guardian can help a graduate in getting a job and their inability to find
one is largely due to the absence of such a guardian.
VII. CONCLUSION
Results presented in this paper indicate that the unemployment of gr

in Bangladesh can be explained by the simultaneous operation of f
acting from both the demand and supply sides and a less than
operation of the labour market for graduates. Employability does
to be an important factor affecting the demand for graduates ; b
not true that graduates are in general unemployable. Graduates wit
specializations are clearly more employable than others, and the r
unemployment is distinctly lower for them. Thus a kind of structural im
does seem to exist in the labour market for graduates ; the ed

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
islam : Graduate Unemployment in Bangladesh 71
system is simply producing some types of graduates who are

by the labour market.
The problem is further aggravated by the type of expectati

generated amongst the graduates by the content of curricula,
of the educational institutions, the incentive structure in the labo
and the whole system in general. Despite the fact that the st
graduates have quite realistic perceptions about the employmen
they continue to aspire for certain kinds of jobs (white collar
cularly, in the public sector). They look at these jobs prim
vehicle for achieving social prestige and upward mobility in a class d
society. This leads them to crowd the educational instituti
with the hope that they will ultimately succeed in getting
But the result actually is a mass production of graduates a la
of whom are not wanted by the labour market.
Imperfections in the operation of the labour market in such

can create further problems. While informal methods of disse
formation about job opportunities and recruiting graduates can
in some cases, they are more likely to lead to a misallocati
jobs amongst aspiring graduates.
REFERENCES
1. Blaug, M. (ed.), Economics of Education, Vol. 1, Penguin, 1970.
2. Blaug, M., "The Unemployment of the Educated in India", in Ri

Jolly et al. (eds.), Third World Employment, Penguin, 1973.
3. Coombs, P.H., "The World Educational Crisis : A Systems Analy

in Richard Jolly et ah (eds.), Third World Employment, Penguin, 197
4. Foster, P.C., "The Vocational School Fallacy in Development Plan

in [1].
5. International Institute for Educational Planning, Higher Education and

Employment in Bangladesh (forthcoming).
6. International Labour Organisation, "Unemployment of the Educated

in Ceylon" in Matching Employment Opportunities and Expectations : 4
Programme of Action for Ceylon, ILO, Geneva, 1971,

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
7. Mulat, T., Educated Unemployment in the Sud

Programme Research Working Paper no. WEP 2
8. Myrdal, G., Asian Drama, Vol. 2.
9. Planning Commission, Government of Banglade

for the Educated in Bangladesh, Dacca, 1974.
10. Psacharopoulos, G. and Sanyal, B.C. "Higher Ed

ment : The ΠΕΡ Experience in Four LDCs", pap
HEP Seminar on Education, Employment and W
University of Dijon on 5-6 December, 1979.

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
Appendix
SAMPLING METHODOLOGY FOR THE STUDENTS*
AND GRADUATES' SURVEYS
For the survey of students, the following institutions were selected

(i) Bangladesh University of Engineering and Technology ;
(ii) Bangladesh Agricultural University ;
(iii) Dacca University ;
(iv) Dacca Medical College ;
(v) Dacca Law College ;
(vi) Five general degree colleges fone from urban and four from rural
areas).
There are four general universities in Bangladesh. Except Dacca University

which is the oldest and the largest ( and is situated in the capital of the
country ), the others are still in their formative stage. Selection of this
university, therefore, seems justified. Selection of Dacca Medical College and
Dacca Law College can be justified on similar grounds. As regards engineering
and agricultural universities, since there is only one institution in each of these
categories, the question of choice did not arise at all.
There are 255 general degree colleges in the country, a larger number of
which are in the rural areas. Out of these, only five colleges, one located in a
typical urban centre and four in rural areas ( one from each of the four admi-
nistrative divisions ), were purposively selected for inclusion in the survey.
Resource constraint was presumably the principal reason for limiting the
number of colleges to five.
It should be noted that a stratified random sampling method necessary for

obtaining reasonably representative results would require in the Bangladesh
situation the selection of a sufficiently large number of institutions. But the
resource constraint did not permit the adoption of this technique. Therefore,
the alternative course of selecting the institutions purposively was taken. But
care was taken to ensure that the enrolments in the selected institutions were
large so that students from various social and economic strata could be
captured by the survey. Besides, students were selected through random
sampling, so as to make the results as representative as possible under the
constraints imposed by the availability of resources,

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC
Final year students of the major disciplines in th

formed the sampling frame for the survey of student
of students from these disciplines was drawn subje
not less than 5 students are covered from each dis
completed before the students appeared at their respe
In all 681 students were covered by this survey.
The second survey, viz., the graduates' survey was

sense that the students interviewed earlier were trace
and attempt was made to interview them through a se
naires. All the students surveyed earlier were sent q
addresses ( viz., their Dacca address, the permanent
of their nearest relative) were used for the purpos
account the fact the publication of the results of the
and to allow a reasonable pre-employment waiting p
interval was allowed between the students' survey and
In all, 331 graduates ( including employed and unempl

202.43.95.43 on Wed, 01 Mar 2023 06:41:31 UTC

Islam 1980 Graduate Unemployment in Bangladesh A Preliminary Analysis

Uploaded by

Copyright:

Available Formats

You might also like

Islam 1980 Graduate Unemployment in Bangladesh A Preliminary Analysis

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Islam 1980 Graduate Unemployment in Bangladesh A Preliminary Analysis

Uploaded by

Copyright:

Available Formats

Graduate Unemployment in Bangladesh : A Preliminary Analysis

Author(s): Rizwanul Islam

Stable URL: https://www.jstor.org/stable/40794301

Bangladesh Institute of Development Studies is collaborating with JSTOR to digitize, preserve

This content downloaded from

Unemployment of the graduates is becoming a serious problem in

Unemployment amongst the educated has assumed disquietin

This content downloaded from

Evidence is also available from other countries to su

Several explanations of the phenomenon of unem

The paper starts by looking at the incidence of unemployment among

2 See, for instance, [ 6 ; 10 j.

This content downloaded from

While the incidence or the rate of unemployment is by itself interes

First, the incidence of unemployment varies between graduates of diff

Second, the incidence of unemployment varies among gradua

Similarly, an examination of the waiting period involved before gett

Employment of- graduates may be affected by factors working from

This content downloaded from

performing the job which his education has ena

That the labour market does not need the kind

On the supply side, students are often thought to

First, students have unrealistic expectations about

Third, students have unrealistic expectations a

Finally, the perception of the unemployed graduates themselves about

This content downloaded from

III. THE INCIDENCE OF UNEMPLOYMENT AND THE

Some Notes about the Data

The survey of graduates provides the necessary data for this se

5 Methodology used for these surveys is described in the appendix.

This content downloaded from

Second, the large non-response could have intro

The Incidence of Unemployment Among Various Group

DISTRIBUTION OF UNEMPLOYED GRADUATES BY SEX, AREA OF

Total 331 Í55 46.83

Source : Graduates' Survey

This content downloaded from

thus a large part of unemployment among female graduates m

It is, however, a bit difficult to explain the higher rate of unemployment

Variation in the rate of unemployment among graduates of different

This content downloaded from

DISTRIBUTION OF UNEMPLOYED GRADUATES BY SPECIALIZATION

Source : Graduates' Survey

The Waiting Period for J

Only 35 per cent of th

This content downloaded from

DISTRIBUTION OF GRADUATES BY THE WAITING PERIOD FOR A JOB

This content downloaded from

Further support for this thesis of revolving queue is

IV. THE EMPLOYMENT OF GRADUATES ;

The Relevance of Education for Jobs

The relevance of the training imparted by the educational institut

This content downloaded from

DISTRIBUTION OF EMPLOYED GRADUATES BY SPECIALIZATION

<5neeift1i7atinn Specialization I Verv Μ"ς1* Moderately ι Not at all Unknown UnKnown I

On the second question ( i e., about the usefulness of the education

This content downloaded from

much helpful in performing their job. On the other