Economy
Record 1.3m Bangladeshi Workers Go Abroad in 2023, Remittance Growth Sluggish
Bangladesh achieved a record high in sending workers abroad in 2023, surpassing the previous year by 15%, driven by the reopening of the Malaysian market and expanded quotas in Saudi Arabia. The Bureau of Manpower, Employment, and Training (BMET) reported that 1.3 million workers found employment in 137 countries, marking a substantial increase from the 1.135 million recorded in 2022. Notably, remittance growth remained modest, with a mere 3% year-on-year increase in 2023.
The robust surge in Bangladeshi workers migrating overseas showcased a disconnect as remittances stagnated around $22 billion over the last two years. Malaysia, reopening its labor market after a four-year hiatus, emerged as the second-largest employer of Bangladeshi workers globally, following closely behind Saudi Arabia. The increased quota for Bangladeshi workers in Saudi firms, raised from 25% to 40% in 2021, significantly contributed to enhanced hiring opportunities.
Saudi Arabia led in recruiting the highest number of workers in 2023, reaching approximately 498,000, constituting around 38% of Bangladesh’s total foreign employment. The roles primarily included construction workers, cleaners, masons, plumbers, and drivers. Despite the success story, challenges arose as workers, especially in Oman, Saudi Arabia, and Malaysia, faced difficulties due to fake job offers and higher migration costs compared to government-fixed rates.
The remarkable achievement in overseas employment had a positive aspect with a surge in non-traditional destinations. Italy became the largest non-traditional destination, recruiting workers for agriculture, hospitality, and manufacturing. The UK and South Korea also joined as major employers, reflecting a diversification in migration patterns.
The increase in non-traditional destinations contributed to a 22% rise in skilled worker migration, surpassing the 2022 mark. However, unskilled migration continued to dominate, constituting 50% of total foreign jobs. Skilled migration accounted for approximately 25%, with professions such as drivers, caregivers, domestic staff, and hospitality personnel leading the way.
Migration experts and bankers attribute the disparity between overseas employment and remittances to the prevalence of low-skilled occupations, the use of illegal money transfer channels (hundi), and fraudulent job offers. Despite challenges, recruiting agencies emphasized their adherence to legitimate demand, emphasizing the multiple stages of review and verification undertaken before workers are sent abroad.
BMET officials acknowledged the small number of workers facing challenges in securing employment abroad compared to the overall migrant population. The government’s efforts to diversify migration patterns and address discrepancies in remittance growth are anticipated to shape future policies in the overseas employment sector.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
