An older woman, Sheela, lived in poverty in Dhaka, Bangladesh, when the nonprofit Payra offered her a chance to start a business selling saris (clothes). “She was really scared. But we got her a place so she was safe, we got her the products and after two months, we got her a new supply of products. After that, she was able to roll her money and get the products to run the business herself,” says Risalat Karim, who, as a student, helped found Payra.

Unemployment and Poverty in Bangladesh

Employment opportunities remain scarce in Bangladesh, even for university graduates preparing to enter the workforce. According to the World Bank, Bangladesh’s unemployment rate stood at approximately 4.7% in 2024. Each year, more than two million young people join the workforce. However, formal job creation lags, pushing many into low-paying, informal sectors. This persistent shortage underscores the critical role of job creation in tackling the country’s widespread poverty.

In 2016, nearly 90% of Bangladesh’s population survived on just $6.85 per day or less. This figure reflects the country’s deep-rooted income inequality and underscores the urgent need for sustainable economic development.

Barriers to Employment in Bangladesh

Many people living in poverty in Bangladesh are willing to work but face a severe shortage of employment opportunities or are systematically excluded from the labor force. With few options available, some beg on the streets to survive. “They’re hurt, they’re homeless. Some are blind, some are missing limbs,” said Karim. “We spoke with one man who didn’t have legs. He was interested [in working], but he was afraid he wouldn’t be able to do certain things.”

Beyond the natural challenges of finding work, some individuals in Bangladesh are trapped in street begging by dangerous criminal syndicates. These groups often prey on those already vulnerable, such as the homeless and unemployed, coercing them into continued begging through threats and, in some cases, physical violence. Disturbingly, there have been reports of syndicates mutilating individuals, including the deliberate removal of limbs, to increase sympathy from passersby.

According to Karim, this made security a major concern when approaching beggars and those who considered leaving the streets feared for their safety.

Employment as a Tool of Empowerment

Despite significant barriers to employment, conditions in Bangladesh have gradually improved alongside the country’s development. Data indicates a positive correlation between rising employment rates and GDP growth, with poverty levels steadily declining in recent years. As more people gain access to stable work, many have been able to break free from the cycle of poverty—and, in some cases, escape the control of exploitative street syndicates.

While Payra lacked the resources to drive large-scale societal change, the organization demonstrated that meaningful impact at the individual level is still possible. With just 20,000 BDT—roughly $164 per person—it helped several individuals escape poverty by supporting them in launching small businesses, including tea stalls, clothing shops and food vendors.

Women in the Workforce

There is a clear correlation between increased female workforce participation and the declining poverty rate in Bangladesh. “Before, there was a very low percentage of women working. Now, there are more working in industries like garments and food and that’s a leading reason why poverty data has decreased. Women being able to enter the market has helped families,” says Karim.

This trend aligns with broader economic logic: as more of the population gains access to employment, living conditions improve over time. Historically excluded from the workforce, women have played a critical role in this shift. Between 1974, shortly after Bangladesh’s founding and 2019, female labor force participation rose from just 4% to more than 36% and the upward trend continues. At the same time, the national poverty rate has steadily declined, highlighting the transformative impact of inclusive employment.

– Jesse Correll

Jesse is based in Boston, MA, USA and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr