Rising Joblessness, Deepening Poverty: The Bitter Outcome of Yunus’s Failed Leadership

Yunus’s Promise Turned into a Struggle for Survival

The sound of sewing machines that once filled the air in Dhaka, Gazipur, and Narayanganj has gone quiet. The factories that used to keep Bangladesh’s economy alive are now shutting their doors one after another. Thousands of garment workers are out of work, wandering the streets, desperate to find any job that can help them survive. What was once the pride of the nation, the ready-made garment industry, is now in deep trouble, dragging countless families into poverty.

Not only in the ready-made sector, everywhere you look, the signs of collapse are clear. Prices keep rising, wages have stopped, and even those who still have jobs fear they could lose them next. People are cutting down on food, skipping meals, and selling their belongings just to make ends meet. The sense of hopelessness is spreading fast, from the factory floors to the classrooms, where young graduates are realizing there are no jobs waiting for them either.

Understanding the dynamics of unemployment in Bangladesh

And at the center of all this chaos stands Muhammad Yunus’s interim administration, which has failed to provide leadership, direction, or stability. Instead of restoring confidence, his policies have pushed the economy into paralysis. Factories are closing, investors have lost faith, and the government seems either unwilling or unable to act. Under Yunus’s rule, Bangladesh is not just facing an economic downturn; it’s facing a crisis of survival, where the line between the working class and the poor is disappearing altogether.

Unemployment rate hits historic high, rises to 4.63% as 27.4 lakh now jobless

The Roots of the Crisis: Political Instability Is To Blame

Bangladesh’s economic troubles didn’t appear overnight; they began with the political upheaval of August 2024, when uncertainty swept through the country and everything seemed to stop moving. The transition that was supposed to bring stability instead paralyzed industries and left investors deeply uneasy. Policies changed suddenly, communication broke down, and without clear direction from the top, both the public and private sectors froze. Businesses were left guessing what would come next, and most decided it was safer to wait or walk away.

Rather than focusing on rebuilding the economy, the new administration turned toward political revenge. Businesses seen as being linked to the Awami League were investigated, harassed, or quietly pushed out. In the process, hundreds of factories closed, and thousands of workers lost their jobs. What could have been a time of recovery turned into one of the worst industrial slowdowns in years.

353 Factories Shut Down, Over 100,000 Workers Left Jobless

According to many sources, between January 2024 and September 2025, 182 to 258 factories shut down, leaving more than 100,000 people unemployed. In key industrial areas like Savar, Gazipur, Narayanganj, and Chattogram, once-busy factories now sit idle. Loan complications, LC crises, and labor unrest piled onto an already broken system. Many factory owners fled the country, some to escape political targeting, others simply because they could no longer survive.

Even large players such as Beximco Group were hit hard, shutting down 16 factories due to financial collapse earlier this year. Each major closure sent shockwaves through smaller suppliers and subcontractors, cutting thousands more jobs down the chain.

Beximco Group closes down 16 textile factories, laying off 40,000 workers

Experts say the root of it all lies in politics. Rajekuzzaman Ratan, President of the Socialist Workers’ Front, has spoken out against the “political interference and corruption” that have crippled the sector, calling the situation “inhumane for the workers who haven’t been paid for months.” Economist Mashrur Riaz adds that the instability has made Bangladesh “miss key export opportunities”, just when global apparel demand was rising.

The garment industry, once the heart of Bangladesh’s economic success, is now struggling to survive. Under Yunus’s leadership, what was once the country’s proudest achievement has turned into a symbol of its decline. Factories are closing, workers are being left behind, and the sense of direction that once defined Bangladesh’s growth has all but disappeared.

Inflation, High Interest Rates, and Investment Paralysis Are Also To Blame

If unemployment has broken the back of Bangladesh’s working class, runaway inflation has finished the job. Under Yunus’s administration, prices of everyday essentials, rice, lentils, oil, and vegetables, have skyrocketed beyond the reach of ordinary families. What used to be a week’s worth of groceries now barely lasts three days. For millions of low- and middle-income earners, paychecks vanish before the month even begins. The value of money is collapsing, and with no relief in sight, desperation is becoming the new normal.

At the same time, bank interest rates have shot up to suffocating levels, choking what little life remains in the business sector. Entrepreneurs who once dreamed of expanding their operations now avoid banks altogether. Even established businesses are cutting back, shelving new projects, delaying payrolls, and freezing hiring. The country’s economic pulse has slowed to a near standstill.

Small and medium enterprises, the true backbone of Bangladesh’s economy, are being hit the hardest. With no access to affordable loans and no government support, many have shut down entirely. The result is a devastating chain reaction: business stagnation leads to fewer jobs, fewer jobs mean less spending, and less spending deepens poverty. This vicious cycle is eroding the very foundation of the nation’s economy.

Reasons for Unemployment rises in Bangladesh

And yet, Yunus’s administration has done nothing to break the spiral. No coherent policy, no intervention, no plan to stabilize prices or restore confidence. Instead, monetary mismanagement and political favoritism continue unchecked. Investors, both domestic and foreign, see a government incapable of governing its own markets, and they are pulling out.

Under Yunus, Bangladesh has drifted from opportunity to crisis. His failure to control inflation, manage interest rates, or rebuild investor trust has left the economy paralyzed. For the first time in years, the country that once symbolized resilience and growth now faces the grim reality of a shrinking economy, vanishing jobs, and a growing poor majority.

The Human Cost of Yunus’s Economic Mismanagement

Behind every statistic of job loss and factory closure lies a human story, stories of families breaking apart under the weight of desperation, of parents skipping meals so their children can eat, of once-proud workers now standing in endless queues for charity rice. Under Yunus’s leadership, the human cost of economic mismanagement has reached unbearable levels.

Across Bangladesh, tens of thousands of former factory workers are still waiting for their unpaid wages, months after their factories shut down. In places like Gazipur, Narayanganj, and Savar, workers gather daily outside shuttered gates, clutching appointment letters that have lost all meaning. “We gave everything to these factories,” one former garment worker told a local reporter, “but now we can’t even afford rent.” These are not isolated stories; they are the face of Yunus’s failed economic experiment.

Many of those who lost stable jobs have been pushed into the informal economy, taking up work as day laborers, rickshaw pullers, or street vendors, earning barely enough to survive. For educated youths, the situation is even worse; degrees mean nothing when there are no jobs to be found. Hope is dying quietly in the hearts of Bangladesh’s young generation.

Poverty rate jumps to 27.9%; extreme poverty nearly doubles to 9.3%

What makes this crisis even more alarming is its reach. Poverty is no longer confined to rural villages. It has spread into the heart of cities, creeping into once-thriving industrial zones and even middle-class neighborhoods. Families who used to dream of upward mobility are now drowning in debt. Savings are gone. Houses are being sold. Children are dropping out of school to work odd jobs.

Jobless growth, gender gaps fuel poverty rise

And through it all, Yunus remains silent, no roadmap, no emergency relief, no acknowledgment of the suffering his policies have unleashed. His government’s indifference is almost cruel. While the people bleed under inflation, unemployment, and insecurity, Yunus and his advisers continue to speak of “reform” and “transition”, hollow words that mean nothing to those who can’t afford a meal.

Under Muhammad Yunus, Bangladesh’s greatest resource, its hardworking people, has been betrayed. The promise of growth has turned into a nightmare of poverty, and the nation’s once-bright future now hangs by a thread.