Importance of skills development for youths

Skills development training and demographic dividend, two interconnected concepts, are gaining widespread attention, yet the overlooked skills development of youths in Bangladesh raises concerns. These notions complement each other, with the advantages of demographic dividend being pivotal for nations fortunate enough to possess it. Despite being a blessed land on the global stage, offering abundant opportunities to leverage its demographic dividend, Bangladesh faces challenges in harnessing the full potential of its youthful workforce due to the negligence of skills development. The National Skills Development Authority (NSDA) and the National Skill Development Policy 2022 (NSDP 2022) play crucial roles in this endeavor, emphasizing the importance of addressing this oversight. These initiatives focus on skill development enterprises, providing a pathway to transform the nations youth into a valuable pool of human resources. However, the correlation between skill development training and demographic dividend highlights the need to address the ignored skills development of youths, recognizing that these elements are intricately linked in shaping the nations future prosperity.

Bangladesh, with a substantial proportion of its population falling within the working age 15 to 64 years, is poised on the brink of a demographic dividend. Currently, over 65 percent of the population is part of this crucial demographic segment. With a youthful population of 34 percent aged 15 and younger, and only five percent aged 65 and older, the potential of the demographic dividend is significant. The population is projected to reach 223.5 million by 2041 and 230-240 million by 2050, presenting a unique opportunity for demographic dividend realization. This demographic dividend, expected to last for 30 to 35 years, offers a window of opportunity from 2045 to 2060. The necessity of youth skills development training becomes evident in ensuring that Bangladesh optimally grasps the advantages of its imminent demographic dividend.

Skills development training plays a pivotal role in harnessing the demographic dividend in Bangladesh by aligning the workforce with evolving market needs. Through targeted training programs, individuals gain the competencies required for emerging job opportunities, fostering a skilled and adaptable workforce. This, in turn, enhances employability, productivity, and innovation, driving economic growth. Moreover, a well-trained workforce attracts foreign investments, further boosting the countrys economic development.
To effectively reap the demographic dividend in Bangladesh, a multifaceted approach is essential. Firstly, there should be a strong emphasis on comprehensive skills development programs, ensuring that the workforce is equipped with the necessary competencies for current and future job markets. Concurrently, conducting regular skills demand surveys and forecasting future skills requirements will enable policymakers to tailor educational and training initiatives to industry needs. Demand-driven policy formulation is crucial, aligning government strategies with the evolving economic landscape. Additionally, updating the curriculum to incorporate cutting-edge technologies and industry-relevant skills ensures that education remains relevant and responsive. Facilitating entrepreneurship, promoting innovation, and encouraging private sector involvement are also key components in harnessing the demographic dividend, fostering economic growth and creating a dynamic and competitive workforce for Bangladeshs sustainable development.

Collaboration among various institutes and ministries is essentialto harness the demographic dividend in Bangladesh. The Skills for Employment Investment Program (SEIP), managed by the Ministry of Finance, is a key player, providing funding and support for skill development initiatives. The Bangladesh Export Processing Zone Authority (BEZA) contributes by promoting industrialization and creating job opportunities, aligning with demographic dividend goals. The Directorate of Technical Education (DTE) focuses on enhancing technical skills, while the Bureau of Manpower, Employment, and Training (BMET) oversees overseas employment, ensuring a global perspective. The NSDA serves as a coordinating body for skill development efforts, ensuring cohesion and efficiency. Furthermore, the National Human Resource Development Fund (NHRDF) contributes to financing skills development projects. By fostering synergy among these institutions, Bangladesh can optimize its development with utmost potential.

Countries like South Korea and Singapore have emphasized technology and innovation, showcasing the importance of investing in these sectors to drive economic growth. Implementing family planning programs, as seen in Thailand, can help manage population growth and ensure that the working-age population is optimized for economic productivity. Additionally, fostering an environment conducive to entrepreneurship and private sector growth, as observed in China, can create diverse job opportunities. A holistic approach that involves cross-sectoral collaboration, effective governance, and strategic investments in education, healthcare, and technology is key to unlocking and maximizing the benefits of demographic dividend for Bangladeshs sustainable development.

The advent of the Fourth Industrial Revolution (4IR) and the emerging Fifth Industrial Revolution (5IR) underscores the critical role of skills development training in leveraging demographic dividend. In the context of these technological advancements, youth workforces become essential drivers of productivity, as they actively engage in inclusive exploration of innovative opportunities.

To harness this demographic boon successfully, policymakers must adopt a multifaceted approach. This includes prioritizing comprehensive skills development programs, conducting regular skills demand surveys, and formulating demand-driven policies. Moreover, updating curricula, fostering entrepreneurship, and promoting innovation are key components in creating a dynamic and competitive workforce. Drawing inspiration from successful models globally, such as those in South Korea, Singapore, Thailand, and China, Bangladesh can shape its policies to align with the changing economic landscape and technological advancements.

The realization of demographic dividends is not automatic but requires systematic efforts to develop skills among the active workforce. To transform demographic transition into demographic blessings, the crucial role of skill development training must be acknowledged. Aligning and promptly implementing the NSDP 2022 alongside the ongoing demographic shift is imperative. NSDA should analyze future work trends, invest in human capital with a focus on skill development initiatives, and create a conducive environment for local and foreign investments in the skill development sector to enhance production, productivity, and employment opportunities for the future workforce. Leveraging the resources, expertise, and knowledge developed by the SEIP Project is crucial, emphasizing their engagement in and prioritization for skill development sector institutions. Recognizing the potential risk of a demographic disaster if the expanding workforce lacks appropriate skills and education, the establishment of a dedicated skill ministry is highly recommended for achieving a successful demographic dividend.

The writer is a Project Officer at SEIP, Finance Division, MoF