In this paper, we have tried to find out specially the features of unemploymentunderemployment
scenario. As we know, like auction market labor market is not perfectly
competitive. For various heterogeneities, it has some distinct features. In Bangladesh,
unemployment and underemployment problems arrive due to the lack of effective demand for
labor. Hence, in this paper we desire to focus the demand determinants of labor in
Bangladesh. In this case, we have emphasized on manufacturing sector, which is the
emerging sector of Bangladesh economy both from the employment generation and from
economic growth perspectives. To estimate the demand determinants we have used ARDL
model where the estimation period is from 1980 to 2002.