1.2 Million Jobs Lost Under Yunus Government, Another 1.2 Million at Risk

The contractionary and impractical monetary policies pursued by the Yunus government over the past one and a half years have triggered a severe crisis in Bangladesh’s labor market, resulting in the loss of 1.2 million jobs. Business leaders now warn that if the current situation persists, another 1.2 million people could lose their jobs within the next six months.
Instead of revitalizing the economy, the government’s policies have led to stagnation in industry, investment, and employment. Speakers at a seminar on LDC graduation, organized by the ICCB in the capital on Tuesday, said that tight monetary policy has increased production costs, restricted access to credit, and discouraged investment—directly affecting working people who are losing jobs at an alarming rate.
Former FBCCI President A.K. Azad said,
“Because of tightening the monetary policy, 1.2 million people have already lost their jobs and are now unemployed. The government is failing to manage the situation. If this continues, another 1.2 million people will lose their jobs in the next six months.”
His remarks highlighted growing concerns that the government’s policy decisions have placed little importance on the livelihoods of ordinary people. What is being presented as economic stabilization, critics argue, has in reality translated into mass unemployment.
Bangladesh Bank Governor Ahsan H. Mansur, speaking at the same seminar, said that there is no alternative to reducing defaulted loans if interest rates are to come down. He admitted,
“Non-performing assets were never truly low; they were shown as low only on paper.”
This admission, critics say, underscores how years of irregularities, looting, and capital flight in the banking sector are now being offset by policies that burden the general public. The government’s failure to control defaulted loans has shifted the cost onto workers through restrictive monetary measures.
The governor also stressed that restoring good governance in the banking sector is essential. However, questions remain as to why the Yunus government has failed to ensure such governance even after 18 months in power, and why effective action has not been taken against those responsible for large-scale financial misconduct.
On Bangladesh’s graduation from LDC status, speakers noted that while the government highlights it as a major achievement, there is little evidence of practical preparedness. With duty-free trade benefits set to decline and access to low-interest foreign loans becoming more difficult, the absence of a clear roadmap could intensify economic pressure in the coming years.
Mutual Trust Bank Managing Director Syed Mahbubur Rahman said,
“Due to the lack of good governance, defaulted loans in the banking sector have increased. If these are not reduced, banks will face serious trouble.”
Overall, critics argue that the Yunus government’s 18-month tenure has pushed the economy toward deeper uncertainty rather than stability. As millions lose their jobs and millions more face the threat of unemployment, the government is being accused of offering little more than statements and assurances, without effective solutions.
As it stands, 1.2 million people are already unemployed due to policy failures, and the looming risk of another 1.2 million job losses hangs heavily over the country.