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Jobless growth: evidence from Bangladesh
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Journal Article
Jobless growth: evidence from Bangladesh
2024
Overview
This paper examines jobless growth in Bangladesh by analyzing the relationship between employment growth and output growth from 2002 to 2017. The findings show a marked decline in aggregate employment elasticity since 2013, suggesting that employment is becoming less responsive to growth, leading to jobless growth. Employment elasticities across categories—such as rural, urban, male, and female—generally declined from 2002–2010 to 2010–2017, although the results are not statistically significant in some instances. Throughout the period, female employment was notably responsive to economic growth, whereas male employment elasticity was consistently lower. A breakdown of aggregate employment elasticity reveals that while agriculture remains the predominant employment source, its dominance is diminishing. In contrast, the manufacturing and construction sectors are gradually rising in employment significance. Yet, the shift in decomposition suggests that changes in sectoral elasticity within agriculture continue to influence the trajectory of aggregate elasticity because of its substantial employment contribution. Our research does not present significant evidence of any swift structural shifts in sectoral employment distributions.
