Job creation, inclusive growth must be the centerpiece: study

Amid the growing impact of Covid-19 on the country, a recent study says job creation and inclusive growth must be the centerpiece of the recovery strategy.

The study, carried out by the Centre for Research and Information (CRI) said the risk of broadening the inequality gap is more than ever before, and jobless recovery might put the progress of the past decade at risk.

In addition, the demographic dividend that Bangladesh has been enjoying might quickly turn into demographic liability, it added.

Imran Ahmed, Deputy Executive Director at Shakti Foundation and a former research fellow at the McKinsey Global Institute; and Syed Mafiz Kamal, a senior analyst at CRI, co-authored the paper.

Low income and or labour-intensive jobs, which represent most of the informal sector and a significant share of SMEs, have been most affected. Many of these jobs are temporary and will come back as the economy opens. However, some of the job losses will be more permanent, it said.

According to CRI estimates, the  "permanent" impact job loss is estimated to be around 6 million, which would nearly double the unemployment rate. It would affect approximately 24 million people.

Countries like Vietnam and New Zealand have announced that they are not opting for an immediate  "V" shaped recovery; their policymakers are prioritising on employment generation and inclusive growth. The authors of the report believe a similar approach should be taken for Bangladesh.