World Bank Commits to Support Bangladesh’s Economic Transformation Focused on Job Creation

The World Bank has reaffirmed its commitment to supporting Bangladesh's economic transformation, with a renewed focus on large-scale job creation—particularly for youth and women—following a high-level visit by its South Asia Vice President, Johannes Zutt.

Concluding a three-day visit to Dhaka, Zutt held strategic discussions with top government leaders, signalling deeper collaboration at a time when Bangladesh faces mounting labour market pressures and global economic uncertainty.

Youth Employment Gap: A Growing Economic Challenge

At the centre of the discussions was Bangladesh's widening employment gap, with new data highlighting the scale of the challenge.

Over the past decade:

• 14 million young people entered the labour market

• Only 8.7 million jobs were created

• Nearly half of working-age youth remain without employment

The situation is even more acute for women, who face structural barriers to workforce participation, including limited access to skills training, formal employment opportunities, and supportive workplace policies.

"Young women face particularly steep barriers," Zutt noted, underscoring the urgency of inclusive job creation strategies.

High-Level Engagement on Economic Priorities

During his visit, Zutt met with key figures shaping Bangladesh's economic policy, including:

• The Finance and Planning Minister

• The Commerce Minister

• The Prime Minister's Adviser on Finance and Planning

• The Governor of Bangladesh Bank

Talks focused on aligning World Bank support with Bangladesh's development priorities—especially job creation, investment growth, and skills development.

Call for Urgent Structural Reforms

Zutt emphasised that addressing unemployment at scale will require long-delayed macroeconomic and financial sector reforms, which are critical to removing barriers to growth.

Key reform areas include:

• Strengthening the financial sector to improve access to credit

• Enhancing the business environment to attract investment

• Addressing structural inefficiencies that limit private sector expansion

"With global uncertainties rising, it is urgent to address foundational bottlenecks to economic growth and job creation," Zutt said.

World Bank Strategy: Turning Growth into Jobs

The World Bank Group is shifting its approach toward ensuring that economic growth translates into local, inclusive employment opportunities.

Its strategy in Bangladesh and beyond focuses on:

• Investing in physical infrastructure (transport, energy, connectivity)

• Strengthening human capital through education and skills development

• Supporting a business-friendly regulatory environment

• Mobilising private sector investment to scale job creation

Importantly, the Bank stressed that its approach is not about relocating jobs globally, but about unlocking economic potential within countries themselves.

Longstanding Partnership with Bangladesh

The visit also highlighted the depth of the World Bank's partnership with Bangladesh.

Since the country's independence, the institution has committed over $46 billion in financing, including:

• Grants

• Interest-free loans

• Concessional credits through the International Development Association (IDA)

These investments have supported key sectors such as infrastructure, education, health, and poverty reduction.

A Critical Moment for Economic Transition

As Bangladesh seeks to transition toward a more advanced, job-rich economy, the pressure to create opportunities for its rapidly growing workforce is intensifying.

The World Bank's renewed engagement signals:

• Increased support for labour-intensive growth strategies

• Greater emphasis on women's economic participation

• A push for structural reforms to unlock private sector potential

With nearly half of its youth struggling to find employment, the coming years will be pivotal in determining whether Bangladesh can convert its demographic momentum into sustainable economic growth.