Labour standards key to negotiations post-LDC graduation

Bangladesh needs to improve its labour standards to secure market access for its exports following its graduation from the least developed country status by 2026, policymakers and experts said at an event on Thursday.

At a technical dialogue on the "National Employment Policy and Labour Market Employment Challenges in Bangladesh," it was also highlighted that if labour standards are not improved in alignment with the growth of the economy, it may exert pressure on bilateral negotiations to obtain the generalised system of preferences (GSP) plus facility after 2029.

The International Labour Organization (ILO) and the Ministry of Labour, Employment and the Research and Policy Integration for Development (RAPID) jointly organised the programme in Dhaka.

In a keynote presentation, RAPID Chairman MA Razzaque said, "We should improve our labour standards. If we fail to do so, it might pose challenges in negotiating with any country to obtain favourable facilities post the LDC graduation."

He said when a nation is moving ahead step by step, that any one may asked what about its labour standards.

Sharifa Khan, secretary to the Economic Relations Division, said that after graduating from the LDC status, Bangladesh will no longer have access to the GSP facilities. However, she also highlighted that after 2029, the EU countries may provide GSP+ facilities.

"GSP+ will not be similar to the existing GSP benefits; instead, it will be more closely linked with factors such as decent work, labour rights, and the environment. So, we need to demonstrate our commitment to these aspects and showcase the quality of our practices," she added.

State Minister for Labour and Employment Begum Monnujan Sufian said Bangladesh is on the road to LDC graduation in 2026. She emphasised the importance of reviewing labour market and employment policies to promote job creation and macroeconomic growth for a successful transition into an upper middle-income country.

"Bangladesh does indeed sit on untapped potential. As mentioned, over two million youth enter the labour force each year, and we must improve on harnessing this demographic dividend in the next 12-15 years," she added.

Tuomo Poutiainen, country director of the ILO Bangladesh, said that these are the collaboration of the ILO and the government of Bangladesh.

"But if there is one agenda that is paramount is generating quality job. I want to reflect on our journey together. Of course, we've been together from the very start, from 1972," he added.

The country director said policies, programmes, and investments are needed to generate this quality jobs.

"We believe that there is a room for dialogue and discussion," he added.

De-feminisation trend in industrial employment

Razzaque said that there is a de-feminisation trend observed in the urban labour force, particularly in industries such as manufacturing, construction, and utilities, where the number of women workers has significantly declined.

According to data from the Bangladesh Bureau of Statistics (BBS), the number of women participating in the urban labour force was around 17.3 million in 2022, compared to 19.6 million in 2017.

The economist said that the reason behind these declines is the adoption of new machinery and technologies in the garment industry.

"One cannot ignore the trend of adopting new technology, as failing to do so would result in factory owners losing their competitiveness," he added.

According to BBS data, industry employment in 2022 stood at around 12.05 million, compared to 12.4 million in 2017.

In response to a question, Razzaque said that over the past five years, the labour force has expanded by 10 million people. However, it is challenging to determine the exact number of jobs that have been created in relation to this increase in manpower.

Razzaque said that employment in the agricultural sector has slightly increased, while the share of the services sector remains unchanged. However, employment in the manufacturing sector has decreased. He added, "On a broader scale, most individuals are employed, but there is scope for them to engage in more productive jobs."

"Women employment in the agricultural sector has shown positive growth," he added.

In 2022, employment in the agriculture sector stood at about 32.2 million, compared to 24.7 million in 2017, according to BBS data.

Regarding the National Employment Policy 2022, Labour and Employment Secretary Ehsan E Elahi said this policy has been formulated with the aim of encouraging contemporary, non-discriminatory, entrepreneurial and productive employment this is aligned with national development goals.

"The aim of this policy is to establish and develop a society free from unemployment and poverty by making the manpower suitable and sufficient," he added.

Ehsan E Elahi said creating decent job for everyone is must to achieve the Perspective Plan 2041.

"In this regard, we must ensure per capita income of more than $12,000 and to lower the poverty rate at 0% to escape the middle income trap," he added.

Md Kawser Ahmed, member (Secretary) of the General Economics Division, said the government emphasised on providing industry-relevant skills training, promoting entrepreneurship, and creating job opportunities that can help to empower the two million new market entrants.

Sher Singh Verick, head of the employment, labour market and youth branch in the ILO, presented a keynote titled "Global Trends and Employment Policy Responses: Comprehensive Approaches in Time of Multiple Crises and Uncertainty."

Shahnaz Arefin, secretary of the Statistics and Informatics Division, SM Zulfiqar Ali, senior research fellow of Bangladesh Institute of Development Studies, Professor Tasneem Arefa Siddiqui, of Dhaka University, also spoke at the event.