Background of the EARN Project

Approximately 27 percent of Bangladesh's youth population is NEET (Not in Education, Employment or Training). This means a huge portion of the population is not engaged in education, employment, or training. The number stands at around 12.6 million. Of these, 89.6 percent are women, about 61 percent of whom live in rural areas. The main reasons behind their NEET status are the lack of skills development and income opportunities in rural areas, along with various barriers to participating in training programs. Multiple socio-economic challenges — particularly restrictions on women's mobility in many families and the disproportionate burden of household responsibilities — negatively affect young women. Meanwhile, labor force participation stands at just 36.4 percent for women compared to 84.2 percent for men, which is a matter of serious concern.

The fact that nearly 90 percent of the NEET population is female points to a gender-based issue. These women face multiple, overlapping barriers in accessing existing skills development opportunities. NEET youth in general also face several challenges. For instance, most training centers in the country are located in urban areas or places that remain out of reach for rural NEET women. Social norms and family restrictions limit their ability to travel outside their local area. In addition, there is a lack of safety and security, along with shortfalls in accommodation and safe transportation.

Another issue is that many NEET youth drop out before completing secondary education, leaving them without the minimum educational qualifications required for admission into formal technical training institutions. Furthermore, the content of many training programs is not directly linked to rural livelihoods and economic opportunities. Additional barriers include limited access to Socio-Emotional and Behavioral (SEB) skills training and Enterprise Development Training (EDT), living in areas with limited job opportunities, and inadequate awareness of modern facilities and information. As a result, NEET youth have lower employability. They also lack access to entrepreneurship support facilities such as seed financing to start a business, incubation support, and mentoring or guidance. These factors together form the background that led to the adoption of the EARN project.

The EARN project will accelerate the post-COVID-19 economic recovery process by expanding access to education and skills development training for NEET youth — particularly women — in selected rural areas of Bangladesh, and by improving their employability. It will also enable a rapid and effective response in the event of any crisis or emergency. The project incorporates core approaches for identifying eligible NEET youth from selected rural areas and providing them with various forms of support. It will offer women the opportunity to acquire essential skills by establishing training centers designed to be women-friendly, including the selection of appropriate locations.

The EARN project will provide "Second-Chance Education" for rural NEET youth, particularly women. Alongside entrepreneurship development and Socio-Emotional and Behavioral (SEB) skills training, the project will bring about transformative change through seed financing, linkages with employers and the labor market, and the creation of employment opportunities. It has the potential to ultimately generate millions of new jobs for Bangladesh's growing working-age population. The project will remove social barriers to create an enabling environment for the socio-economic inclusion of youth, particularly women, and will strengthen the institutional capacity of both public and private stakeholders. Beyond direct beneficiaries, many more young people will benefit through awareness-raising activities, social mobilization campaigns, career counseling, psychological support, and systemic capacity building.

The project's design will facilitate economic diversification and ensure sustainable economic development. It is expected that, through successful implementation, the EARN project will produce an adequate skilled workforce (approximately 900,000) in priority sectors by 2028 — driving economic transformation and helping the country graduate from a developing to a more advanced economy.