QUESTION NO:4)How is unemployment measured in Bangladesh,

and what are the potential sources of unemployment data? Do

you think it is using a global standard?

Ans: Unemployment refers to the condition where individuals who are

capable of working, are willing to work, and are actively seeking
employment, but do not have a job during a specified reference period. It is a
key measure of the health of the economy. The most frequently used
measure of unemployment is the unemployment rate. It's calculated by
dividing the number of unemployed people by the number of people in the
labor force in a specific region or workforce. In Bangladesh, unemployment is
measured through national surveys and follows international standards set
by the International Labour Organization (ILO). Bangladesh Bureau of
Statistics (BBS) primarily measures unemployment through its Labour Force
Survey (LFS). Household-based sampling is used to collect data across rural
and urban areas. There are three categories of the respondents:

 Employed: Worked at least 1 hour during the reference week

(following ILO standards).
 Unemployed: Did not work but actively looked for a job and was
available to work.
 Inactive: Not working and not looking for work.

Unemployment Rate Formula:

Unemployment Rate= Unemployed People / Labour Force ×100

Where Labour Force = Employed + Unemployed (actively seeking work)
It is calculated by dividing the number of unemployed individuals by the
total labor force (employed and unemployed) and expressing it as a
percentage. Bangladesh aligns with International Labour Organization (ILO)
guidelines in defining employment and unemployment.

In Bangladesh, several institutions and surveys provide data on

unemployment. The most authoritative data comes from government
surveys, supported by international and independent organizations. Such as:

1. Labour Force Survey (LFS) Reports: It is the primary and most

reliable source of employment and unemployment data. The LFS is a
household-based sample survey that provides detailed information on
employment, unemployment, and labor force participation. The Bangladesh
Bureau of Statistics (BBS) publishes comprehensive reports from their LFS,
typically with both annual and quarterly estimates. Recent reports include
the "Labour Force Survey 2022 Final Report"

2.Statistical Yearbook of Bangladesh: This annual publication from the

BBS includes a dedicated chapter on "Labor and Employment," which
presents various labor market indicators, including unemployment rates.
Recent yearbooks include Statistical Yearbook Bangladesh 2022, 42nd
EDITION.

3. International Labour Organization (ILO): The ILO is a United Nations

agency that sets international labor standards and collects and disseminates
labor statistics globally. The ILO's statistical database (ILOSTAT) provides a
vast array of labor market indicators for countries worldwide, including
Bangladesh. These figures are often based on national LFS data, sometimes
adjusted to ensure international comparability.

4. World Bank: The World Bank collects and publishes a wide range of
development indicators for countries, including labor market statistics.

5. Research Organizations (National and International): Institutions

like the Centre for Policy Dialogue (CPD), Bangladesh Institute of
Development Studies (BIDS), South Asian Network on Economic Modeling
(SANEM), and BRAC Institute of Governance and Development (BIGD) and
international research bodies often conduct their own assessments, surveys,
and policy briefs on labor market issues in Bangladesh. They do not collect
primary data, but their work often involves in-depth analysis of these data
surveys.

6. News Media and Financial Publications: Reputable news media and

financial publications in Bangladesh such as The Prothom Alo, The Daily Star,
Dhaka Tribune, The Business Standard and internationally (e.g., Reuters,
Bloomberg) regularly report on unemployment figures and trends.

7.UNDP & ADB Reports: These international organizations often conduct

labor market assessments related to human development and economic
outlooks. Such as UNDP (2022), ADB (2023) country reports.

8. Household Income and Expenditure Survey (HIES): It provides

indirect data on employment through information on income sources,
occupations, and household characteristics. It offers indirect insights into
employment patterns through income sources.
It's important that Bangladesh Bureau of Statistics (BBS) is the primary
official source for the most accurate and detailed unemployment data for
Bangladesh. Other sources are valuable for analysis, interpretation, but they
usually build upon or reference the data provided by the BBS.

Bangladesh is increasingly following global standards, specifically ILO’s

global standards in measuring unemployment through the Labour Force
Survey conducted by BBS. For a long time, the Bangladesh Bureau of
Statistics (BBS) primarily reported unemployment data based on the 13th
International Conference of Labour Statisticians (ICLS) guidelines from 1982.
The older definition of "employment" was not quite specific. This often
resulted in a lower reported unemployment rate. Experts and international
bodies, including the ILO, have consistently pointed out that this older
definition did not accurately reflect the true labor market situation and made
international comparisons difficult.

But the global standard for labor statistics is now the 19th ICLS guidelines,
adopted in 2013. This standard has a much narrower definition of
"employment," focusing primarily on work performed for pay or profit. The
significant development is that the BBS has started to publish unemployment
data using the 19th ICLS methodology in its recent Labour Force Surveys
(LFS), alongside the data based on the 13th ICLS. This is a crucial step
towards aligning with global standards. Recent reports (like the Quarterly
Labour Force Survey for July-September 2024 and the Labour Force Survey
2022 Final Report) provide figures calculated under both methodologies.
Bangladesh is actively adopting the global standard (19th ICLS) for
measuring unemployment. While it still provides data based on the older
definition for historical context, but the move towards 19th ICLS is a clear
indication of adapting globally recognized standards for best labor statistics.

QUESTION NO:5) Read the Bangladesh Economic Review of 2024

(or the latest available). What information do you see there that
matches what you learnt in the 105?
Ans: Here are the information that matches what I have learnt in the 105:
GDP and GNI: Gross Domestic Product (GDP) is the total value of all goods
and services produced within a country's borders in a specific time period.
Gross National Income (GNI), formerly known as Gross National Product
(GNP), is the total income earned by a country's residents, including income
generated both within the country and from abroad BBS has provisionally
calculated the GDP for the FY 2023-24 to be Tk. 50,48,027 crore, which is Tk.
5,57,185 crore higher than the previous fiscal year.

GDP growth Rate: The GDP growth rate is a measure of the change in a
country's Gross Domestic Product (GDP) over a specific period, usually a year
or a quarter, expressed as a percentage. GDP growth rate is provisionally
estimated at 5.82 percent in real terms and 12.41 percent in nominal terms
for FY 2023-24.

GDP calculation method: Bangladesh estimates GDP using the production

and expenditure approaches. In the production-based estimate of GDP, the
economy is divided into three broad sectors: agriculture, industry and
service.

Consumption Expenditure: Consumption expenditure refers to the total

spending by individuals, households, and governments on goods and
services to satisfy their current needs and wants. In the GDP calculated by
the Expenditure Method, consumption expenditure, especially private
expenditure, constitutes the majority of GDP. According to provisional
calculation by BBS, the contribution of consumption expenditure to GDP in
the FY 2023- 24 is 72.39 percent

Savings and Investment: According to provisional calculation by BBS, the

total domestic savings in the FY 2023-24 is 27.61 percent of GDP. Similarly,
national savings in the FY 2023-24 is provisionally calculated to be 31.86
percent of GDP

Inflation: Inflation refers to a general increase in the prices of goods and

services in an economy over a period of time, leading to a decrease in the
purchasing power of money. The general inflation rate rose to 9.73 percent
in the FY 2023-24, where inflation rate on food items was 10.65 percent and
on non-food items it was 8.86 percent.

Revenue Mobilization: as per the revised budget of the FY 2023-24, the

total revenue was Tk. 4,78,000 crore, which is 9.47 percent of GDP.
Government Expenditure: Government expenditure, also known as
government spending, refers to the total spending by a government within a
specific period, typically a fiscal year, on various goods, services, and
transfer payments. As per the revised budget of the FY 2023-24, the total
expenditure was Tk. 7,14,418 crore, which is 14.15 percent of GDP.

Interest Rate: Interest rate is the cost of borrowing money or the return on
lending money, usually expressed as a percentage of the principal amount.
The weighted average lending rate rose from 7.09 percent in June 2022 to
7.31 percent in June 2023, peaking at 11.52 percent in June 2024. Similarly,
the weighted average deposit rate climbed from 3.97 percent in June 2022 to
4.38 percent in June 2023, reaching 5.49 percent by June 2024.

Capital Market: Total market capitalisation declined by 14.24 percent,

falling from Tk. 7,72,078.04 crore in June 2023 to Tk. 6,62,155.89 crore in
June 2024.

Exports: Exports refer to goods and services produced in one country and
sold to another. In the FY 2023-24, total export earnings amounted to USD
44.48 billion, reflecting a 4.34 percent decline from USD 46.50 billion in the
FY 2022-23.

Import: Goods and services purchased from other countries and brought
into a country is called import. In the FY 2023-24, total import payments
(c&f) stood at USD 66.73 billion, which was 11.1 percent lower than that of
USD 75.06 billion in the previous fiscal year.

Wages Rate Index: General WRI: Rising from 118.82 in 2013-14 to 205.30
in 2022-23, the general wage rate showed steady growth, peaking at 7.74
percent in 2023-24, illustrating resilience amidst inflation.

Narrow Money: Narrow money refers to the most liquid forms of money
supply within an economy, readily available for immediate use in
transactions Narrow money. It is increased by 1.84 percent during the FY
2023-24, which was 15.49 percent in the FY 2022-23

Broad Money: Broad money refers to a measure of the total money supply
within an economy .It includes not only cash and demand deposits (narrow
money) but also less liquid forms of money like savings accounts, time
deposits, and other financial instruments that can be readily converted into
cash. Broad money (M2) stood at Tk. 20,33,231.6 crore in the FY 2023-24 as
compared to Tk. 18,87,168.1 crore of the FY 2022-23
Reserve Money: Reserve money stood at Tk. 4,13,644.6 crore at the end of
the FY 2023-24, which was Tk. 3,83,585.2 crore in the FY 2022-23.

Money Multiplier: The money multiplier refers to the process by which an

initial increase in the monetary base (like reserves held by banks) leads to a
larger increase in the overall money supply. Money multiplier reduced to
4.915 in the FY 2023-24 from 4.920 of the FY 2022-23 due to higher growth
of reserve money compared to broad money growth

Income Velocity of Money: Income velocity of money increased to 2.48 in

the FY 2023-24 which was 2.38 at the end of the FY 2022-23

Banking Sector: As of June 2024, there are 61 scheduled banks in

Bangladesh, which includes six state-owned commercial banks (SOCBs),
three specialised banks (SBs), forty-three private commercial banks (PCBs),
and nine foreign commercial banks (FCBs). Besides, there are five non-
scheduled banks in operation, which are: Ansar VDP Unnayan Bank,
Karmasangsthan Bank, Grameen Bank, Jubilee Bank and Palli Shanchay
Bank.

So these are the matches that I have studied in 105 course that matches
with the Bangladesh Economic Review.