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Bangladesh’s roadmap towards global workforce

Representational image. Illustration: AI generated

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In the fiscal year 2022-23, migrant workers sent back $21.61 billion in remittances, providing critical foreign exchange reserves

Morshed Noman

Publisted at 9:19 AM, Mon Dec 2nd, 2024

Labour migration has long been a vital component of Bangladesh’s economy, with over 12 million nationals working in various countries.

In the fiscal year 2022-23, these workers sent back $21.61 billion in remittances, providing critical foreign exchange reserves.

However, Bangladesh’s labour export model is heavily reliant on low-skilled migration, resulting in lower per capita remittances compared to countries like the Philippines or India.

Transforming this model to emphasise quality migration, diversifying markets, and maximizing socio-economic returns is essential for the country’s long-term economic stability.

Bangladesh’s reliance on traditional markets in the Middle East, such as Saudi Arabia, the UAE, Qatar, Oman, and Kuwait, has been both a strength and a vulnerability.

Over 80% of Bangladeshi migrant workers are employed in these regions, predominantly in construction, domestic work, and other low-skill sectors.

While these jobs provide a steady income stream, their concentration in specific markets leaves Bangladesh exposed to geopolitical, economic, and policy-related risks.

Additionally, the demand for low-skilled labour offers limited growth potential in terms of wages and remittance contributions.

One of the most pressing issues is the lack of skill development among Bangladeshi workers.

Only 20% of migrants undergo formal training before departure, significantly limiting their access to higher-paying, skill-intensive roles.

In contrast, countries like the Philippines invest heavily in vocational training, enabling their workers to secure jobs in sectors like healthcare, IT, and professional services.

Expanding technical and vocational education is critical for Bangladesh to remain competitive in the global labour market.

Key areas for training include healthcare, caregiving, information technology, advanced construction techniques, and hospitality.

For example, caregiving and nursing are high-demand fields in ageing societies like Japan and several European countries, while IT training can open opportunities in remote work and digital industries.

Language training is another crucial area for improvement.

Proficiency in English, Arabic, Japanese, or Korean significantly enhances employability and workplace integration.

Language barriers often limit Bangladeshi workers to entry-level roles, while language training could enable them to access managerial or specialised positions.

Establishing government-funded language programs tailored to target markets would ensure workers are better equipped for international employment.

The financial burden associated with migration is another major challenge.

Many Bangladeshi migrants rely on intermediaries or recruitment agencies, incurring exorbitant fees that can lead to debt and financial stress.

Reports indicate that migration costs for Bangladeshi workers are among the highest globally, with workers spending several thousand dollars for placements in low-wage jobs.

Digital platforms for job matching can bypass intermediaries, ensuring transparency and reducing costs.

These platforms can also provide detailed information about job roles, salaries, and legal protections, empowering workers to make informed decisions.

Additionally, the government could offer low-interest loans or subsidies to reduce the financial barriers to migration.

Exploring new labour markets is critical for reducing dependency on traditional markets and expanding opportunities for Bangladeshi workers.

Countries like Japan, South Korea, and various European nations present significant potential.

For instance, Japan’s Technical Intern Training Program and South Korea’s Employment Permit System (EPS) provide structured pathways for semi-skilled and skilled workers.

Europe, particularly countries like Germany and Italy, offers demand in caregiving, skilled trades, and hospitality.

African nations experiencing rapid infrastructure development could also serve as new destinations for skilled Bangladeshi workers in construction and engineering.

Diversifying markets requires robust diplomatic engagement.

Bangladesh needs to strengthen bilateral agreements with these countries to ensure ethical recruitment practices, worker protections, and streamlined migration processes.

Such agreements can also help align training programs with the specific needs of target markets, ensuring that Bangladeshi workers are equipped with the skills in demand.

Maximising remittance inflows requires formalizing money transfer systems.

Despite the significant number of workers abroad, informal channels still account for a considerable portion of remittances, leading to lost revenue for both migrants and the economy.

Encouraging the use of digital remittance platforms can address this issue.

These platforms offer secure, fast, and cost-effective options for transferring money, benefiting both workers and their families.

Additionally, providing tax incentives for formal remittances could encourage migrants to use official channels.

The Philippines serves as a strong model in this regard, where targeted measures have resulted in higher remittance flows through formal systems.

Financial literacy campaigns are another way to maximize the impact of remittances.

Educating migrant families about savings, investments, and productive use of remittance income can enhance its long-term economic benefits.

For example, remittances could be channelled into small businesses, real estate, or national savings instruments, fostering economic growth and stability.

Protecting the welfare of migrant workers is an integral aspect of sustainable labour migration.

Many Bangladeshi workers face exploitation, harsh working conditions, and limited legal recourse. Establishing labour desks in Bangladeshi embassies abroad can provide on-the-ground support for addressing grievances and ensuring worker rights.

Additionally, legal aid services and insurance schemes for healthcare and life coverage can improve the security and well-being of migrants.

Social security programmes tailored to migrants, such as pension schemes or repatriation assistance, would provide long-term benefits for workers and their families.

Reintegration programs for returning migrants are another critical area.

Many workers struggle to adapt upon returning home, with limited opportunities to utilise their overseas experience.

Programmes that facilitate re-skilling, entrepreneurship, or employment placement can help returning migrants contribute to the local economy.

For instance, a skilled construction worker returning from the Middle East could be encouraged to start a small business or train others in advanced techniques, multiplying the benefits of their overseas experience.

Bangladesh can also draw lessons from other countries to enhance its labour migration model.

The Philippines, often considered a global leader in overseas employment programmes, has implemented comprehensive measures to support its workers, including pre-departure orientation, skill certification, and welfare services.

India’s focus on IT and engineering has positioned its workforce in high-paying global industries.

Bangladesh could adopt similar approaches, tailoring them to its unique demographic and economic context.

Collaboration with international organisations such as the International Labour Organization (ILO) and the International Organisation for Migration (IOM) can further support Bangladesh’s efforts.

These organisations can provide technical assistance, funding, and best practices for ethical recruitment, skill development, and worker protection.

Engaging with regional forums like SAARC and ASEAN could also help Bangladesh create cooperative frameworks for labour mobility and skill recognition.

Public awareness campaigns highlighting the value of skilled migration are essential to fostering a cultural shift.

Many aspiring migrants prioritize immediate opportunities in low-skill sectors due to a lack of awareness about the benefits of skilled employment.

Promoting success stories of skilled workers and showcasing the higher earnings and better living conditions they enjoy could inspire more individuals to pursue vocational training and skill development.

Bangladesh’s labour migration strategy must evolve to prioritise quality over quantity.

Enhancing skill development, reducing migration costs, diversifying labour markets, and protecting worker welfare are key steps in this transformation.

By addressing these areas, Bangladesh can unlock the full potential of its migrant workforce, boosting remittance inflows and ensuring long-term socio-economic benefits.

The journey toward quality migration is not just an economic imperative but also a pathway to improving the lives of millions of Bangladeshi families reliant on this vital sector.

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