Workforce Development in Dhaka: Market Trends and What Businesses Need to Know Now

Dhaka’s labor market is undergoing notable change as multiple initiatives aim to address skill gaps and unemployment. In April 2025, Dhaka saw the launch of the 'Domestic Worker Learning Platform,' providing free training to more than 4 million domestic workers across Bangladesh, marking formal recognition of domestic work as a sector requiring technical skills [3].

Meanwhile, the German Embassy in Dhaka supports the PRECISE project, which introduces a dual Technical and Vocational Education and Training (TVET) model. This model combines classroom instruction with practical on-the-job training to prepare a workforce for green and sustainable industries adhering to EU standards [9]. Further bolstering the skill pipeline, the Social Development Foundation administers the Youth Employment Generation Support (YEGS) program, targeting youth and vulnerable populations in Dhaka by equipping them with technical skills and facilitating job placements [4].

Why Workforce Development Matters Now

Unemployment and underemployment remain pressing challenges in Dhaka-Bangladesh’s largest metropolitan area and economic hub. According to a 2025 survey by the Bangladesh Institute of Development Studies, 66% of graduates from colleges affiliated with the National University are unemployed. This has spurred action to provide foundational digital and financial literacy, key areas identified as lacking among new graduates [7].

Dhaka Division records the highest unemployment figures nationwide, with approximately 687,000 individuals out of work as of December 2024, representing nearly 26% of the country’s total unemployed population [4][9]. Graduate unemployment is especially acute, with around 13.5% of bachelor’s degree holders jobless and nearly one third of young graduates aged 15-29 remaining out of work [4][5]. Even as the formal job market in mid-2025 has shown signs of recovery-offering over 8,000 new vacancies in sectors like Ready-Made Garments (RMG), Fast-Moving Consumer Goods (FMCG), and technology-significant mismatches between employer demands and workforce skills persist [5].

Local Developments Shaping Employment Prospects

Dhaka’s service sector employs more than two-thirds of the city’s workforce, while industrial jobs account for about 20%. The garment sector alone represents half of industrial employment and 28% of female labor [1]. Services and industry interplay with rising demand for skilled workers in emerging sectors, including green technology bolstered by initiatives like the PRECISE project. This project targets over 1,000 industrial workers and students, aiming to develop competencies aligned with sustainability goals and global market standards [9].

Cross-border labor migration opportunities have also expanded. In November 2025, Bangladesh and Japan signed a memorandum of understanding to send at least 100,000 skilled and semi-skilled Bangladeshi workers to Japan over five years, opening new pathways for wage earners and linking labor supply with international market demand [3].

The Social Development Foundation’s YEGS program actively addresses skills shortages by training Dhaka’s youth and other vulnerable groups with technical skills tailored to local industry needs while facilitating job placements. This approach helps offset the mismatch between education and employment requirements [4].

Additionally, free digital and financial literacy programs, prompted by graduate unemployment survey data, aim to equip young professionals with foundational skills critical in today’s increasingly technology-driven business environment [7].

What Businesses Need to Know

Companies operating in Dhaka must navigate a labor market marked by a large, available workforce eager to upskill amid persistent structural unemployment. The growth of formal job opportunities in RMG, FMCG, and technology sectors signals industry areas with strong hiring potential.

Yet, business leaders should recognize the continuing gap between current workforce capabilities and employer expectations, especially in digital and green economy skills. Collaborations with training initiatives such as the ‘Domestic Worker Learning Platform,’ PRECISE TVET project, and YEGS can provide a pipeline of better-prepared workers.

Investing in employee skill development aligned with government and international training programs enhances competitiveness while addressing the chronic problem of graduate unemployment in Dhaka. Capitalizing on the enhanced skill sets developing in key sectors will be crucial as Dhaka’s employers adjust to both local economic realities and opportunities in regional labor migration agreements like the Bangladesh-Japan labor deal.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.