Poverty in Bangladesh is surging once again, reversing years of steady progress and laying bare deep structural weaknesses in the economy.
A new study by the Power and Participation Research Centre (PPRC) warns that 27.93 percent of Bangladeshis now live in poverty, up sharply from 18.7 percent in 2022. The proportion of people in extreme poverty has risen to 9.35 percent, compared to just 5.6 percent three years ago.
A fragile escape from poverty
At a national dialogue hosted online on September 13, experts warned that the recent reversal in poverty reduction is not a temporary setback but a symptom of deeper fragility.
“For too long, progress has been concentrated around lifting people just above the poverty line, without securing a sustained escape from poverty,” said Imran Matin, executive director of the BRAC Institute of Governance and Development. He described the situation as a “twin crisis” of rising transitory poverty and a troubling rise in chronic extreme poverty.
The PPRC study also found that 18 percent of Bangladeshis fall into the “vulnerable non-poor” category—at constant risk of sliding into poverty during shocks.
Jobless growth and inequality
Selim Raihan, professor of economics at Dhaka University, noted that despite years of high GDP growth, decent jobs remain scarce. “The ‘jobless growth’ phenomenon is real, and it is exacerbated by rising inequality,” he said, adding that access to quality education is out of reach for many families. With households shouldering 70 percent of education costs, poor families are being shut out of opportunities to break the poverty cycle.
Fahmida Khatun, executive director of the Centre for Policy Dialogue, stressed that stagnant investment, flawed employment metrics, and climate risks further complicate the outlook. She pointed to alarming statistics: more than 40 percent of Bangladeshi youth are NEET—Not in Employment, Education, or Training. “Job creation must be central to any poverty reduction strategy,” she said.
Rural hardship and agricultural decline
The squeeze is particularly severe in rural Bangladesh. Former Bangladesh Agricultural University vice-chancellor MA Sattar Mandal said structural problems are dragging rural households deeper into poverty. “Agricultural growth has slowed, wages have eroded, and rural non-farm income is shrinking. This explains why rural poverty is rising more sharply than urban poverty,” he said.
A worsening jobs crisis
One year after the student-led uprising toppled the Awami League government, many young Bangladeshis feel betrayed by broken promises of reform. Despite pledges to create a fairer job market, unemployment has worsened.
According to the Bangladesh Bureau of Statistics, the number of unemployed people rose to 2.7 million in 2024, while the industrial workforce has stagnated at around 12 million for a decade. Overseas employment, long a vital safety valve, also fell by 22 percent in 2024.
“Every year, 2.5 million graduates enter the job market, but there are opportunities for barely half of them,” said Dhaka University economist Muhammad Sahadat Hossain Siddiqui. “Weak private investment, capital flight, and poor governance are choking job creation.”
Violence and economic drag
The poverty surge has been compounded by political violence and insecurity since the ouster of Sheikh Hasina’s government in 2024. Business leaders and industrialists aligned with the Awami League have faced looting, extortion, and arson.
One of the most shocking cases was the attack on Gazi Group, owned by Golam Dastagir Gazi, after his arrest. Reports say factories and homes were looted and burned under the protection of elements linked to the interim government.
Student leader Jane Alam Apu accused senior advisors and police officials of direct involvement in orchestrating extortion and mob attacks. Such violence has forced multiple factories to shut down, fueling further job losses and undercutting growth.
Rising costs, stagnant wages
The crisis is felt most acutely by youth and low-income workers. With inflation climbing, many say their incomes cannot sustain basic needs. “Even a 20,000 taka salary is barely enough,” said Rajshahi University student Sukumar Podder. Career counselors warn that graduates face years of study only to land jobs with wages too low to support a modest life.
Sectoral headwinds and external shocks
The ready-made garment industry, Bangladesh’s economic lifeline, is under stress. Thousands of workers have been laid off amid factory closures, unrest, and declining export orders. The U.S. tariff hike on Bangladeshi apparel has further clouded demand, threatening millions of jobs.
While remittances reached $7.23 billion in the last quarter of 2024—offering a temporary cushion—fewer migrant departures signal weaker inflows in the future.
Reforms and risks
Bangladesh has secured an IMF deal to release $1.3 billion this year, tied to currency and revenue reforms aimed at restoring macroeconomic stability. But economists warn that without a bold push on skills training, investment, and governance reform, such measures may arrive too late for a disillusioned generation.
An uncertain horizon
The mood among youth is increasingly bleak. “Every tea stall conversation ends with the question: what will you do after graduation?” said Dhaka University student Mahbub Pias.
Once celebrated for lifting millions out of poverty, Bangladesh now finds itself at risk of backsliding. Experts warn that unless urgent measures are taken to generate jobs, strengthen education, and protect the vulnerable, the country’s hard-won development gains may unravel—leaving millions trapped in a cycle of insecurity and despair.
