Bangladesh faces a growing risk of worsening youth unemployment driven by the combined effects of longstanding educational challenges and rapid advancements in artificial intelligence (AI), experts warned at a recent forum. The country’s young job seekers, particularly university graduates, could find it increasingly difficult to secure entry-level positions as AI disrupts traditional employment sectors, speakers said.
The discussion, held at The Daily Star Centre and titled “AI and Youth Employment: Is Bangladesh Prepared?”, examined how AI is transforming the labor market and what steps are needed to prepare the workforce for the shift. The event featured economists, IT industry leaders, and AI specialists who called for urgent reforms in education and employment policies.
Professor M Niaz Asadullah of Dhaka University described the situation as a “ticking time bomb,” highlighting the intersection of high graduate unemployment and inadequate foundational skills in literacy, numeracy, and STEM education. He cautioned that Bangladesh’s ambitious government targets for job creation may be overly optimistic if they do not account for technology-driven disruption. “We are studying, but we are not really learning,” he said, emphasizing the need for better alignment between education outcomes and labor market demands.
Fahim Mashroor, CEO of the recruitment platform Bdjobs, noted that even before AI’s impact, many graduates were struggling to find employment, with some remaining jobless for years after finishing their studies. “AI or no AI, they will be unemployed,” Fahim said, underscoring the severity of the existing job crisis. Meanwhile, Mustafa Mahmud Hussain, co-founder of the domestic AI firm PukuAI, pointed out that AI is capable of automating many computer-based tasks more efficiently, potentially reducing the number of entry-level jobs available. He urged early workforce preparation to enable employees to work alongside AI technologies rather than being displaced by them.
Panelists also discussed the implications for young people seeking their first jobs. Professor Asadullah warned that automation of basic tasks could prevent graduates from gaining critical work experience, creating a catch-22 scenario given employers’ demands for experienced candidates. He proposed incentivizing companies to offer apprenticeships combined with training on adapting to AI-driven workflows.
The forum further addressed the impact of AI on Bangladesh’s IT industry, a significant source of employment. Raisul Kabir, CEO of Brain Station 23 Ltd, said AI is already reducing the need for traditional software outsourcing by enabling fewer workers to deliver the same output. While this poses short-term risks, he noted that AI also opens opportunities for companies to develop new products and services, potentially sustaining the sector in the medium term.
Despite these challenges, the discussants saw potential opportunities arising from AI-driven economic changes in wealthier countries. Increased productivity and the resulting rise in disposable income might boost demand for services requiring human interaction, such as hospitality, caregiving, nursing, and personalized care — sectors where Bangladeshi workers could find higher-value employment abroad. Fahim cited the Philippines as an example of a country successfully moving its workforce into specialized care services.
To capitalize on these prospects, panelists emphasized the need for Bangladesh to rethink its workforce strategy, focusing on training that equips young workers with the skills required for international service roles rather than concentrating on low-paid, routine jobs. They called for investment in appropriate educational institutions and programs to build language proficiency, professional standards, and cultural competencies alongside technical training.
Professor Asadullah underscored that different aspects of education — general knowledge, employability skills, and productivity training — must be addressed with tailored approaches to help Bangladesh navigate the transformative impact of AI on its labor market.