Unequal employment sector of safety versus productivity

Currently, the state is giving more importance to private investment, production, employment, exports, entrepreneurship creation, small and medium enterprise growth, startups and industrial diversification. These have also been called the basis of future growth in the recent budget speech. But most of the country’s youth still prefer government jobs. The problem is mainly created due to the imbalance between government and private jobs.

So the old question can be raised anew: Why has the private sector not yet become a safe enough alternative for the youth? The main reason for this is that no one makes decisions just by looking at the salary. They look at whether the job is sustainable, whether there is protection in case of illness, and whether there will be a pension in old age.

Currently, government jobs themselves are a big security package. The Ninth National Pay Commission has recommended increasing the minimum from Tk8,250 to Tk20,000 and the maximum from Tk78,000 to Tk160,000. At the same time, proposals have been made for health insurance, pension reform, welfare board restructuring, allowance review, pay grade restructuring and human resource development of government employees. It is wrong to see these as just salary increases. It is an indication that government jobs are becoming more stable, secure and established as long-term careers.

There are also proposals for reforms in the recruitment process. There are proposals to complete the BCS exam within a year, annual recruitment schedule, ethics assessment, setting limits on effort, and reducing the misuse of political identity verification. Whether these proposals are fully implemented or not, the message is clear: government jobs are more predictable, systematic and institutionalised.

In contrast, the reality in the private sector is much more uncertain. In March this year, credit flow to the private sector fell to a record 4.72 percent. High interest rates, energy uncertainty, global instability, inflation and caution in bank lending are making business expansion difficult. In this situation, hiring new manpower, long-term investment, and job security are shrinking.

Bangladesh Bank’s Tk600 billion stimulus package aims to restart closed and distressed factories, restore business confidence and employment, especially in export-oriented industries. The same package also mentions revitalising production, supporting export-oriented industries and financing the rural economy. This move shows that the private sector is not only a place of potential but also a place of stress. There, costs are high, credit is tight, markets are uncertain, production is risky and long-term protection of workers is weak.

The gap is also clear in the pension system. A large part of the country’s nearly 18 million registered private sector workers do not have institutional financial security in retirement. While government employees remain within the pension and welfare framework, a large part of private sector workers still rely on their own savings, family support or an uncertain future.

Higher education unemployment exacerbates the crisis. In 2024, about 900,000 graduates were unemployed, which is 13.5 percent of the total unemployment. When higher education cannot guarantee jobs and the private sector cannot provide adequate security, it is natural to have an excessive inclination towards government jobs.

According to my ‘Afnan Equilibrium’ theory, sustainable development is not built on productivity alone. It also requires a balance between technology, productivity, resilience, and social impact. In the case of Bangladesh, the pressure for technology and productivity is being placed on the private sector. But resilience or security is being concentrated more in government jobs. As a result, young people are leaning towards security rather than risk. This is a logical response to unequal security.

The solution, therefore, is not to weaken government jobs. Government employees should have fair salaries, pensions, health protection, and professional dignity. At the same time, a minimum security foundation must be created in the private sector as well. Portable pensions, joint pension contributions of employers and employees, health insurance, provident funds, written contracts, layoff protection, limited unemployment assistance, and digital employee records should gradually become a normal part of the labour market.

If the government provides factory revitalisation, refinancing, startup funds, or small and medium enterprise support, job quality must also be added. The budget speech has mentioned initiatives to launch employment exchanges at the district and upazila levels, skill development, worker information management and labour legal protection. Not just administrative initiatives, these need to be seen as opportunities that link productivity and security. Government-aided institutions can be encouraged to meet minimum conditions for worker registration, appointment letters, training, pension contributions and employment retention. This will increase productivity and resilience together.

The proposed employment exchange system should also not be just a registration centre. It should be a centre for verified jobs, skill mapping, apprenticeship programmes, linkages with local industries, and results monitoring.

Writer: Shaikh Afnan Birahim is researcher and analyst

The article was originally published in the print and online editions of The Daily Samakal and has been rewritten for the English version by Mohammed Humayun Kabir, Assistant News Editor