Beyond the Gulf: Why labour market diversification efforts are failing to gain traction

Highlights:

• Bangladesh is struggling to expand overseas labour markets
• Gulf job opportunities continue to shrink
• The government is seeking new markets in Europe
• Experts cite a shortage of skilled workers
• Worker recruitment in Europe fell in 2024
• Analysts stress better training and diplomacy

Efforts to diversify overseas labour markets for Bangladeshi workers have failed to gain meaningful momentum over the years, even as opportunities in traditional Middle Eastern destinations continue to shrink.

Job markets in countries such as Oman, Bahrain and the United Arab Emirates have remained largely closed to low-skilled Bangladeshi workers for periods ranging from two years to nearly a decade.

Infographic: TBS

Recent tensions involving Iran and the US-Israel axis have further worsened the situation over the past two months, adding fresh uncertainty to the region.

Against this backdrop, the government says it has stepped up efforts to expand employment opportunities beyond the Gulf and reopen closed markets. 

Prime Minister Tarique Rahman, speaking during a question-answer session in parliament on 15 April, also said that, in light of recent instability in the Middle East, the government is working on a plan to expand overseas employment opportunities.

As part of the push, the government has already signed bilateral agreements with seven countries, with a particular focus on Europe. The countries are Serbia, Greece, North Macedonia, Romania, Portugal, Brazil and Russia.

However, despite repeated commitments by successive governments to explore new markets, progress has remained limited.

Speaking at an immigration conference on Wednesday (6 May), State Minister for Expatriates' Welfare and Overseas Employment Nurul Haque Nur said, "We are trying to reopen closed labourmarkets such as Malaysia, as well as exploring new destinations.

"Our country is overpopulated. If you cannot create employment – whether at home or abroad – it will lead to disorder…Many may have expected more visible changes and improved services within these two months of the government. While we may not have met those expectations yet, we are trying."

But, sector insiders and experts attribute the stagnation to a persistent shortage of skilled workers, weak diplomatic engagement, insufficient labour agreements and persistent problems such as visa fraud.

Shamim Ahmed Chowdhury Noman, former secretary general of the Bangladesh Association of International Recruiting Agencies (Baira), said progress has long been slow; however, he welcomed the renewed initiative.

"Over the years, we have urged the government to open access for Bangladeshi workers in Eastern European countries like Portugal, Croatia and Hungary. But there has been very little progress in the past two decades," he told The Business Standard.

"They need thousands of workers, but we cannot meet the demand due to a lack of skilled manpower," he added.

He also highlighted structural barriers, noting that only a small number of Bangladeshis migrate to these countries each year.

"One of the major challenges is the absence of embassies of many of these countries in Bangladesh. Aspirant migrants often have to travel to India for visas, which increases both costs and complexity," he said.

Data from the Bureau of Manpower, Employment and Training (BMET) shows that, after steady growth between 2020 and 2023, recruitment of Bangladeshi workers in Europe fell sharply in 2024, dropping to 22,271 from 46,455 the previous year – a decline of more than 50%.

Sector insiders say many workers who initially migrated to Balkan and non-Schengen countries later moved irregularly to Schengen nations, contributing to employer reluctance.

Despite rising labour demand across Europe, employers in countries such as Romania, Poland, Malta, Bosnia, Croatia and Albania are becoming increasingly hesitant to recruit from Bangladesh.

MoUs signed, but challenges persist

On 6 May last year, Bangladesh and Italy signed a memorandum of understanding to curb illegal migration and promote legal pathways. The agreement allows for both seasonal and non-seasonal workers, particularly in agriculture.

According to BMET data, Bangladesh sent workers to 182 countries between 2020 and 2024, with 42 European nations recruiting Bangladeshi workers. 

Italy topped the list with 26,333 legal hires, followed by Romania, the UK, Croatia, Malta, Poland, Portugal, Cyprus, Albania and Russia. In 2024 alone, Italy recruited more than 8,000 workers from Bangladesh.

Bangladesh also signed an MoU with Greece in 2022 to send 4,000 skilled workers annually, mainly in agriculture, over a five-year period.

But industry insiders caution that agreements alone will not be enough to unlock new markets.

"Diplomatic efforts must go beyond paperwork," Fakhrul Islam, a former Baira leader, told TBS. "Delegations need to visit, engage employers and ensure consistent follow-up. Otherwise, these agreements will remain on paper."

Migration experts echo similar concerns, highlighting gaps in skills, coordination, and transparency in recruitment. Without addressing these structural issues, Bangladesh risks losing ground to competing labour-sending countries.

Shakirul Islam, chairman of Ovibashi Karmi Unnayan Program (OKUP), said past initiatives have often stalled despite significant spending and limited accountability.

An urgent shift needed

Despite the challenges, the urgency of diversification is widely acknowledged.

With global labour markets evolving and traditional destinations becoming increasingly volatile, expanding migration routes is no longer optional. It is essential not only for workers seeking stable employment, but also for an economy heavily reliant on remittance inflows.

Mohammad Jalal Uddin Sikdar, a migration expert and faculty member at North South University, said it is now crucial to look beyond traditional Gulf destinations.

He noted that China's Belt and Road Initiative is driving large-scale infrastructure projects across Asia, Africa and Europe, where labour shortages are emerging due to low population growth. Similar demand is rising in Russia, Central Asia and parts of Africa, particularly in the energy sector.

To tap into these opportunities, he stressed the need for a skilled workforce, language-based training and stronger migration diplomacy.

Government steps so far

Officials at the expatriates' welfare ministry said high-level visits are being arranged to strengthen bilateral ties with potential recruiting countries beyond the Middle East.

"Bangladesh missions abroad have been instructed to explore labour markets and assess profession-based demand," said an official from the ministry's employment desk. "Based on their recommendations, local lobbyists or expert firms may be appointed where necessary."

The official added that steps are underway to sign agreements with Thailand, while initiatives have been taken to expand worker migration to Japan by strengthening language and skills training.

Japanese language training is currently being offered at 53 Technical Training Centres. The government has also taken steps to recruit trainers in Japanese, Russian, Arabic, German and Italian, with 41 trainers already appointed.

State Minister Nurul Haque said, "Currently, our Technical Training Centres offer training in around 58 trades. However, not all of the 104 institutes have the same facilities. We have already identified this and instructed the director general just on Tuesday (5 May) to inform us about the equipment and facilities needed, so that we can seek funding in the upcoming budget."