Abstract: “Labor surplus in an economy can be a useful resource for development and future growth if it can be channeled through appropriate sectors and industries. Empirical evidence suggests that most of the countries that have successfully attained rapid economic development in last few decades, had done so through channeling their labor surplus mainly through both industrial and service sectors while putting a comparatively lower emphasis on the agricultural sector. However, due to difference in the economic infrastructure in different countries, the same method to utilize labor surplus may not be applicable universally. Rather being a highly agro-based country, Bangladesh may have to utilize its agricultural sector more to attain economic growth and labor surplus while looking for alternative sources such as agrobased and labor-intensive manufacturing and semi-skilled migration abroad. Bangladesh would also need to address the inefficiency of employment survey programs currently practiced in”

Keywords: labor surplus, unemployment, economic growth, human resource development, underemployment.