Female workforce fall raises concern ahead of LDC graduation

Bangladesh is witnessing an alarming fall in women's employment, raising concerns about economic preparedness ahead of its graduation from the least developed country (LDC) category in 2026.

According to the Bangladesh Bureau of Statistics (BBS) Labour Force Survey 2024, the female workforce declined from 25.3 million in 2023 to 23.7 million in 2024, with economists and policymakers warning of losing the country's growth momentum at a critical time.

The data was shared at a high-level dialogue titled "Female Employment as a National Opportunity for Advancing Economic Reform in Bangladesh," organised by Innovision Consulting Private Limited in collaboration with the Bangladesh Research Analysis and Information Network (BRAIN) and Voice for Reform, held in Dhaka today (5 January).

The event brought together policymakers, representatives from political parties, economists, think tanks, civil society organisations, women's groups, activists and others.

Addressing the event, Planning Commission Secretary Dr Quayyum Ara Begum highlighted structural shifts behind the trend, noting that the absence of women's participation from traditional sectors has developed gaps that remain vacant.

"The agriculture sector has lost a significant share of its women labour force as many migrated to informal parlor jobs, and the resulting vacancies remain largely unfilled," she said.

Research outputs presented at the dialogue showed that male labour force participation has remained largely stable while women's participation has fallen sharply, particularly in urban areas. Urban female labour force participation fell from 25.1% in 2023 to 22.5% in 2024, mainly due to shrinking manufacturing jobs and automation in the RMG sector.

Technological upgrades have reduced overall factory employment by more than 30%, disproportionately affecting women working in sewing and trimming roles, according to the findings.

Meanwhile, educated women face a severe mismatch between skills and jobs, with unemployment among female graduate degree holders nearly six times higher than the national average for women.

Employment quality also remains a major concern, as 95.96% of employed women are engaged in informal work, offering limited job security, social safety and career advancement.

"Formal sector employers often think of women's employment as a poor investment," said Professor M Niaz Asadullah. "We need to incentivise them to hire women out of genuine interest, rather than mere obligation."

Speakers emphasised that women's employment is not just a social concern but a macroeconomic imperative. Without stronger female participation in the formal economy, the country risks falling into the middle-income trap. Comparative examples were cited from Vietnam, where female labour force participation exceeding 70% has supported sustained export growth and poverty reduction.

As Bangladesh prepares to lose preferential market access and concessional financing following LDC graduation, participants stressed that mobilising the female workforce is essential to boosting productivity, exports and fiscal revenues.

The event also highlighted the extreme exclusion faced by marginalised groups, noting that employment among women with disabilities stands at just 12.8%, compared to 47.59% for men with disabilities.

To reverse the decline, the dialogue proposed a reform roadmap for the next government, placing recommendations for expanding affordable childcare facilities as 54% of women currently identify inadequate childcare as a major barrier to employment and strengthening enforcement of workplace safety.

Highlighting the unequal care burden, Nabila Khan, owner of Divine Beauty Lounge, said, "The mentality of sharing childcare responsibilities and household chores should evolve from a male perspective, as it has already progressed remarkably from a female perspective."