youth employment scenario in rural areas of bangladesh… · higher than the overall unemployment...
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Youth Employment Scenario in Rural Areas of Bangladesh: A Case of Mohammedpur West Union
Ranjan Kumar GuhaAbdullah Al Mamun
Introduction• Contribution of agriculture to the GDP has been
reduced gradually from 33 percent in 1980-81 to16.33 percent in 2013-14.
• Employment in Rural Non Farm (RNF) sector isincreased to 45.5% in 2010 compared to 39.9% in1996.
• Trade and manufacturing of RNF sector contribute11.2 percent and 8.9 percent respectively to therural income while the share of service sector is only7.2 percent.
• Sixty percent of total populations belong to theworking age group while more than one fourth of thesame is youth (15-29 years). Youth constitute one-third of the labour forces in 2010.
• Employment in low productive and non-formalsectors like, agriculture has very little potential toget expected gain from the population agestructure advantage.
• In that case entrepreneurship development canplay a vital role for self employment andgenerating paid employment in rural areas.
• (Bakht, 1984), found that in rurathere is dearth ofhigh level entrepreneurial talent l areas ininnovation of process or products.
• Youth employment situation in rural areas bydifferent categories were explored in this study
Conceptual Framework
• Unemployment rate among the youth population ishigher than the overall unemployment rate inBangladesh.
• Among the unemployed youth, 63 percent hadsecondary or higher education.
• On an average only .2 million formal jobs are createdagainst the demand of 2 to 2.2 million job
• The youth unemployment rate was recorded 10.3% in2013 that is higher than the regional average. 95percent work in informal sector and 32 percent areself employed and 11 percent unpaid family worker
• Underemployment is persistent in nature and therate of underemployment is increased 16.6 percentin 2000 to 20.3
• Youth especially in rural areas try to migrate in othercountries for the prospect of higher earnings percentin 2010
• The major problems identified as mismatch betweensupply and demand of labor market, inappropriateand inadequate skill to perform effectively in thelabor market and inability to adequate job creation inthe formal sector of the economy.
• Bradley, 2005 explained environmental factors for Entrepreneurship Development
Capital availability
Presence of experiences
entrepreneurs,
Technically skill labor
force,
Accessibility of suppliers
Accessibility of customer or new market
Government influence
Availability of land or
facilities
Objectives Of the study • The general objective of the study is to assess the
employment condition of rural youths and quality ofentrepreneurial environment in rural areas.
Investigate the employment scenario
and enterprising initiative among the
rural youth ;
Assess the quality of entrepreneurial
environment and its relationship with entrepreneurship
development; and
Make policy recommendations for gainful employment
generation and entrepreneurship
dev.
Methodology
• CBMS Accelerated Poverty Profiling (APP) census• A rider questionnaire was administered to know
the situation of youth employment in rural areas• Mohammedpur (west) Union of Daudkandi
Upazila, Comilla• A total of 1575 youths of different categories
were interviewed• Some indicators were calculated from the
household profile
Findings
Housewife. 35.05
Student. 23.18
Remittance Earner. 12.04
Agr. Labour . 8.5
Service Holder. 3.89
Business. 3.59
Non Agr. Labr. 3.22
Unemployed. 3.18Other. 21.24
Occupation of Youth
One fourth of total population are Youth - Male 23.08% and female 23.86%.
Three fourths of female youths are married compared to one fourth male youth
17 percent youth were illiterate More than one third youth completed SSC to post graduation Female outnumbered male in passing (SSC) Graduation and post graduation level male outnumbered the female.
Youth Labor Force
0
5
10
15
20
25
30
35
40
45
Paid Employee Temporary absentfrom Work
Self Employed Employed butsearching for
better
Unemployed &ready to work and
searching job
Not Searching Job
43.37
20.38
15.56
5.19 6.65 7.94
Perc
enta
ge
Youth Labor Force by Activity and Gender
Male Female Both
Situation of Unemployed Youth (n=993)
• A good portion did not search for job in last three Major Causes are as follows:
Preparing to get
entry into labour market
Waiting for the results of previous interview
Waiting to go abroad
Busy with household activities
Low level Education
12.72
56.49
2.185.86
22.76
Fig. 1: Pattern of Using Day Time by Unemployed Youth
Gossiping Helping family members Acquiring skill Political activity Reading
Salaried job At home country
41%
Self employment
37%
Job at abroad20%
others 2%
Fig. 2. Prefered Areas of Employment by Unemployed Youth
32.25
55.81
71.79
80.89
89.69
97.57100.00
0
10
20
30
40
50
60
70
80
90
100
0
50
100
150
200
250
300
Low leveleducation
Lack of skill Poor Networking Lack of capital Social barriers Lack of familysupport
Lack ofexperiences
Cum
ulat
ive
perc
enta
ge
Resp
onse
s
Figure :03 Parato Diagram for Problems to get Employment
Count %
Employed Youth
52.73
7.27
21.82
3.6414.55
Fig. 4 Sector of Parttime Employment of Youth Students
Agriculture Reparing Private Tutor Dress Making Others
Causes: Contributing to family income (35%) , gainingexperience (33%) , meeting their educational expenses(20%), save money (10%)
A. Students with part time employment (n=55)
B. Paid Employee n=453
58%
8%
6%
4%5%
4%
4%3%
8%
Fig. 5 Paid Employee in different Sector
Agriculture Trade RestaurantRoad Construction Carpentry and massion TransportRepairing Service Sector Others
Average monthly income for the fixed salaried people are Tk.10,000 and temporary paid employee Tk. 6,650
Formal sector employee in teaching and health sector at publicsector are covered under social security program. But in theinformal sector there is no coverage of social security program.
C. Employment in Family Enterprise (n=45)
6%
64%
10%
8%
14%
Graph 6: Youth Employment in Family Enterprise by Different Sector
Cottage Agriculture Groceery Barbar others
The average salary of paid employee is around Tk. 4,000 per month
The unpaid worker in the family used to take money from the guardian of the family whenever they need it.
More than one third of the employed youth has plan to start new business or expand existing business
One third of youths has their plan to move into salaried job
Entrepreneur (n=29)
61%21%
18%
Fig. 7. Entrepreneurail Activities by Different Sector
Production/ Manufac. Service Trade
Mean age of youth entrepreneurs were 23 yrsand 10% of them were female.
• The average initial capital required for startingtheir endeavors was Tk. 43,000
• Fifty five percent entrepreneurs collect theinitial amount from their personal savings orfamily support. NGOs supports the initiatives ofnearly one fourth entrepreneurs. Bank and DYDeach supported 5 percent initiative. Besides, 11percent entrepreneurs had to depend on takingcredit from informal money market.
• Twenty five percent of the entrepreneurs gainedprevious experience
• In case of training only 7 percent of theentrepreneurs got training from department ofyouth and NGO. Monthly average profit fromtheses endeavor is recorded Tk. 4,619.
• Employed two persons in their business.• Entrepreneur himself/herself or family
members work as a manger in theirorganization.
• In most cases there is no product, processor supply chain innovation in theirendeavors.
• They used to concentrate on contributingto the traditional business by supplyingquality goods on a reasonable time frame.
• The prohibiting factors related to high risk,lack of information
• Requirement of small amount of money,availability of raw materials, existing marketfor entrepreneurial product or services, doingsomething residing at home, bright future andwork with more were identified as attractionfor starting own business in rural areas.
• Eight and ten percent of the respondentshave their plan to expand area of operationand diversify their business endeavorrespectively.
Entrepreneurial Environment
• Credit, Bank and InsuranceFinancial Environment 2.11
• Training, technical and informationSkill formation Environment2.19
• Promotional activities of Public and Private Institutes
Institutional Environment2.28
• Transportation and ElectricityInfrastructural Environment2.38
• Raw materials and MarketSupply Chain Environment2.15
• Attitude of Community and Individual Social Environment 2.18
Entrepreneurial Environment and Entrepreneurship
Quality of Entrepreneurial Environment (%)
Number of Entrepreneur (%)
Ward Number
Poor Good
1 98.61 1.39 -2 98.57 1.43 -3 36.78 63.22 12 (41.37)4 82.07 17.93 -5 98.15 1.85 4 (13.79)6 36.84 63.16 9(31.03)7 81.55 18.45 -8 100.00 0.00 1(3.44)9 51.92 48.08 3 (10.34)
Conclusion and Recommendations• Youth are homogeneous in respect of their age but
they are heterogeneous in respect of their demand, skill, attitude, family status, educational qualification etc.
• Paid job at home and abroad is the most preferred area of youth to be employed in a gainful way.
• But, it would be difficult to crate lot of jobs in the formal sector. In that context, entrepreneurship development for adding value in the product, service and process is very much essential.
• Technical and financial assistance is needed to transform the endeavor of youth into a rewarding venture. In that way entrepreneur can create their gainful employment as well as transform skill to their employee
• Public sector should give more emphasis on ensuring qualityeducation, providing skill having market demand and organizingthem into formal organization.
• Financial organizations, private organization need to be moreinnovative to cater the need of financial and other advisorysupport for starting an enterprise.
• Female youth need special attention as a good portion of themneed to be busy with household works. Innovative mechanism isneeded to employ them in a gainful way by balancing load ofhousehold and economic works.
• For developing entrepreneurial environment in rural areas publicprivate partnership is essential. Both of them can play theirpotential role on the basis of competitive advantage in acoordinated manner.
Recommendations
Thank You