Bangladesh is sitting on a “ticking time bomb” as high unemployment, particularly among educated young people, collides with the rapid advance of artificial intelligence (AI). The technology threatens to eliminate jobs that graduates have long relied on to enter the workforce, according to IT professionals and an academic.
But AI could also create opportunities in higher-value services, caregiving, hospitality and other professions that depend on human interaction, provided Bangladesh prepares its workforce for the changing demands of the global economy, they said.
The person who writes the education chapter of the government’s plan doesn’t get the chance to review the youth chapter. There is no coordination in the planning process.
M Niaz Asadullah Professor of economics, DU
At a discussion at The Daily Star Centre yesterday, the speakers said the challenge is not simply to train young people to use AI, but to reform an education system that has failed to equip many graduates with basic skills, align training with market demand and prepare workers for emerging opportunities overseas.
The Daily Star organised the event, titled “AI and Youth Employment: Is Bangladesh Prepared?”, as the eighth episode of its “Business & Beyond” series.
Graduate unemployment is even more alarming than what the IMF says. On our platform, we know that at least 50%-60% of graduates get no job for four to five years after graduating.
Fahim Mashroor CEO, Bdjobs
The discussion followed repeated warnings from global development partners about AI’s impact on the labour market. Last week, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said AI is affecting labour markets like a “slow-moving tsunami”, with about 40 percent of jobs worldwide eventually affected and young graduates among the most exposed.
AI will cut jobs; there is no doubt. But our white-collar base is so small that AI can help us leapfrog if every CEO uses it as artificial wisdom rather than a regular worker.
Raisul Kabir Founder and CEO, Brain Station 23 Ltd
At yesterday’s event, M Niaz Asadullah, a professor of economics at Dhaka University, said the country is approaching a potentially serious social crisis as technological disruption collides with longstanding weaknesses in education and employment.
Anything you can do on a computer, AI can do it better and faster. One can do the work of twenty. We cannot stop it; we must prepare to be AI-ready.
Mustafa Mahmud Hussain Co-founder and MD, PukuAI
“What we are facing is a ticking time bomb,” he said. “What I see is a massive social crisis developing.”
The problem, he argued, goes beyond AI. Bangladesh is entering this technological transition with major deficiencies in literacy, numeracy and science, technology, engineering and mathematics (STEM) education.
“We are studying, but we are not really learning,” Prof Niaz said, pointing to gaps in foundational education and students’ difficulties in acquiring basic competencies.
He also questioned whether the government’s ambitious employment and economic targets adequately account for the disruption AI could cause.
He said that the government has discussed creating 1 crore jobs, including 50 lakh for digitally certified workers, alongside a target for 85 percent of those workers to find employment within six months.
“But where will these projections stand when we account for technology-driven disruption?” he asked, arguing that education, youth employment and information and communications technology policies need to be coordinated.
At the event, Fahim Mashroor, chief executive officer of Bdjobs, said Bangladesh’s unemployment problem was already severe, even before the effects of AI were felt.
Drawing on his experience with his recruitment platform that holds around 60-70 lakh jobseeker profiles, he said many graduates struggle to find work for years after completing their studies.
He also argued that international estimates could understate the scale of graduate unemployment in the country.
“AI or no AI, they will be unemployed,” Fahim said, referring to young graduates already struggling to find work.
Mustafa Mahmud Hussain, co-founder and managing director of PukuAI, a domestic AI platform, said tasks performed on computers are particularly vulnerable to automation. “Anything you can do on a computer, AI now can do it better and faster,” he said.
AI could allow one person to perform tasks previously handled by several employees, Mustafa said, although businesses would need time to adapt their workplaces and processes to the technology.
He compared the transition with earlier technological changes, when the introduction of electric motors and computers required businesses to reorganise their operations before they could realise the full productivity gains.
Bangladesh, Mustafa said, cannot afford to wait until automation becomes widespread before preparing its workforce.
“We need preparation,” he said, stressing the need to equip people to work with AI rather than react only after jobs begin disappearing.
ENTRY-LEVEL JOBS AT RISK
The discussants said the technological transition poses a particular challenge for young people seeking their first jobs.
Prof Niaz said automating entry-level tasks could deprive graduates of the experience they need to build careers. Employers often demand experience even for junior positions, creating a difficult cycle for those trying to enter the workforce.
He suggested that companies adopting automation could be incentivised to offer supervised apprenticeships, allowing young people to gain practical experience while learning to work in changing environments.
Education reform, meanwhile, must go beyond teaching students to operate AI tools.
Prof Niaz said workers would need strong foundational knowledge, critical thinking skills and the ability to assess AI-generated information. Without subject knowledge, users might struggle to identify errors or judge whether an AI-generated answer is appropriate.
“In the age of AI, you need to be good at your own subject matter while also having a high level of AI literacy,” he said.
Raisul Kabir, founder and chief executive officer of Brain Station 23 Ltd, said AI is already reducing demand for traditional software outsourcing, posing a growing challenge for Bangladesh’s IT industry.
“Now, with AI, the work of 25 people can be done by 10,” he said, explaining how clients are using AI to reduce their reliance on software developers.
He added that AI is performing some tasks “in very good quality”, sometimes better than humans.
However, Raisul said the technology is also creating opportunities by enabling companies to take on work they previously could not handle.
“The net result of the new opportunities being created and the old opportunities disappearing is something we do not know yet,” he said.
He believes the software industry can remain sustainable in the short and medium term, provided companies move beyond conventional outsourcing and focus on delivering solutions.
Businesses that rely solely on software outsourcing face greater risks as AI adoption expands, he said. Developing new products and solutions, by contrast, could help them adapt.
SERVICES OFFER AN OPPORTUNITY
The speakers also identified a potential silver lining. They said AI-driven productivity gains in wealthier countries could increase demand for services that depend on human interaction.
Bdjobs CEO Fahim said that if AI-enabled businesses and economies generate more wealth while reducing working hours, consumption patterns would change. People with more disposable income and leisure time might spend more on restaurants, tourism, personal care, fitness and other personalised services.
“When people have money and time, they actually spend that money on personalised services,” he said, explaining why consumers might continue paying for experiences and personal attention even as technology takes over other tasks.
For Bangladesh, the opportunity lies in preparing workers to serve these expanding markets rather than competing mainly for low-paid, routine jobs. Fahim identified caregiving, nursing and hospitality as fields in which Bangladeshi workers could potentially secure higher-value jobs in wealthier countries.
He cited the Philippines as an example of a country moving beyond traditional call-centre work towards more specialised care services. Language proficiency, professional standards, cultural understanding and the ability to interact with customers are also essential for such jobs.
“Should we manufacture clothes and send them abroad, or should we send our people abroad to provide services?” he asked, arguing that Bangladesh needs to rethink how it prepares workers for international employment.
The country sends large numbers of workers overseas every year, but Fahim said it needs to move beyond its overwhelming focus on lower-skilled jobs and prepare more people for specialised occupations.
He called for appropriate training institutions and programmes to equip young people for international markets, including jobs in hospitality and caregiving.
Without such facilities, training initiatives risk producing certificates without the practical skills employers require, he commented.
Prof Niaz also stressed the need to distinguish between education in general, education for employment and training to improve workers’ productivity.
“Each requires a different approach, and all three need attention,” he said.