How machines are winning in garment factories as workers lose jobs
Bangladesh’s narrow, garment-heavy export base and weak investment diversification have prevented new industries from absorbing workers displaced by machines
When Roksana Akhter lost her job in Gazipur early this year, she thought it was temporary. But she never got called back. Her factory had installed a machine that could replace six workers.
Her story shows how modern machines are quietly reshaping Bangladesh's factories, dominated by garment and textiles, and their backward linkages. Automated cutting, knitting, and sewing lines are boosting productivity severalfold, but they are also wiping out thousands of low-skilled jobs.
According to RAPID, a local research organisation, Bangladesh lost 14 lakh manufacturing jobs between 2013 and 2023, even as the sector grew at around 10% annually. Manufacturing employment fell from 9.5 million to 8.1 million, a clear sign of jobless growth.
This raises an obvious question: How did job creation fall even as garment exports surged from $12.5 billion to $40 billion over the past decade?
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A deeper look reveals the answer: extreme dependence on the RMG sector, which accounted for 85% of total exports in FY25. For years, Bangladesh failed to build alternative export engines. Now, as garments and textiles automate rapidly to stay competitive against countries like China and Vietnam, the impact is hitting both new job creation and existing workers.
"The manager said the new machine could do the work of six helpers. They only kept the operators. I don't have that skill, so there was no place for me anymore," said Roksana, now working part-time as a tailor in her neighbourhood for less than half her previous salary.
We see clear long-term gains from investing in automation. Wages have increased, and there are additional obligations like termination benefits, eight weeks of maternity leave, provident fund contributions, Eid bonuses, and more. But machines don't carry these costs.
Roksana's story depicts a reality Bangladesh has yet to fully grasp: The economy is growing, factories are modernising, but jobs are disappearing, analysts say.
Modern machines eating up jobs
Nowhere is automation advancing faster than in the sweater industry. Textile millers are not far behind as they rush to increase efficiency, meet deadlines, and avoid labour-related disruptions.
Industry insiders say one automated sweater machine, operated by a single person, can produce around 30 pieces per day, compared to a maximum of five from a manual machine. Automation also helps tackle labour shortages, rising wages, absenteeism, and risks of unrest over payments.
Rezwan Selim, managing director of Softex Sweater and vice-president of BGMEA, said the upfront investment for automated jacquard machines is significantly higher than for manual ones, but the long-term competitiveness they offer is far greater due to lower labour requirements and sharply higher output.
Previously, he said, one manual machine needed one operator. Now a single worker can run six automated machines, delivering four to five times more productivity.
"We see clear long-term gains from investing in automation," Rezwan said.
He added that recent amendments to the labour law (ordinance) have also discouraged manufacturers from expanding their workforce.
"Wages have increased, and there are additional obligations like termination benefits, eight weeks of maternity leave, provident fund contributions, Eid bonuses, and more. But machines don't carry these costs," he told TBS.
Shams Mahmud, managing director of Shasha Denims, said many Bangladeshi entrepreneurs were slow to adopt modern machinery because manual labour was historically cheaper.
"But that has changed now," he told TBS. "Wages have risen significantly, and we know they will continue to rise. Every new investment now factors this in, and companies are buying modern technology and machines for long-term gains."
Citing an example, he said several factories, including Shasha Denims, have purchased fully automatic pocket-attaching machines that deliver higher productivity and consistent stitching quality.
"Work that previously required five people can now be done by a single operator," he said. "My investment in these machines will pay back in four years."
Shams added that five years ago, he needed 80–90 workers on a production line. Today, he needs 45–50 to produce the same — or even higher — output.
MA Jabbar, managing director of DBL Group, one of Bangladesh's top five garment exporters, said automation is essential for staying competitive and maintaining quality. Even so, he is focusing on developing multi-skilled workers to retain his workforce.
"Earlier, one knitting machine was run by one operator; now the same person operates three," he told TBS. "We need multi-skilling and re-skilling to diversify our products."
For new job creation, Jabbar said Bangladesh needs fresh investments — something that is not happening due to energy shortages, poor infrastructure, including inefficient ports, and cumbersome business processes.
Md Khorshed Alam, managing director of Little Group and a director of BTMA, however, said job losses in textile mills are not driven by automation but by gas shortages, financial losses and misuse of the bonded warehouse facility.
"Textile millers are not getting proper costing as demand has slumped and misuse of bonds is rampant. Even shoe factories are importing yarn and fabrics and selling them in the local market," he told TBS. He added that around 30% of machines are idle because of the gas crisis.
Economists blame narrow production base
Two leading economists, Professor Mustafizur Rahman, distinguished fellow at CPD, and Mohammad Abdur Razzaque, chairman of RAPID, have blamed Bangladesh's narrow manufacturing base for the country's failure to generate new jobs. They said technology adoption has also contributed significantly, with RAPID's research estimating 14 lakh job losses in the manufacturing sector over the past decade.
Prof Mustafiz said employment elasticity of growth has been declining since FY2015–16, most acutely in manufacturing, where the number of jobs created per unit of output growth has fallen sharply.
"If we could have expanded horizontally, we would have had more factories — and more jobs," he told TBS.
He explained that even if modern technology reduces a factory's workforce from 500 to 400, an expansion in the number of factories from, say, 10 to 12 could offset the job losses. "Our manufacturing base is extremely narrow, and we have failed to diversify our products and markets," he added. "China and India will not buy garments from Bangladesh, but they need many other items that we simply do not produce."
Razzaque said, "Technological deepening in the garment sector to enhance productivity and efficiency has driven much of the job cuts, as RMG alone accounts for 34% of total manufacturing."
Technology is also spreading across non-RMG sectors, where workers are increasingly being replaced by machines, he added.
FDI matters
Foreign direct investment is crucial for broadening Bangladesh's production base and accelerating export growth, said Nasir Khan, managing director of Jennys Shoes.
"Of Vietnam's $400 billion in exports last year, 80% came from foreign companies and only 20% from Vietnamese exporters," he told The Business Standard. Vietnam achieved this, he said, by ensuring a business-friendly environment, efficient port services, and responsive government agencies.
Nasir argued that Bangladesh could unlock similar gains if it reduced regulatory and licensing hurdles, improved port operations, and incentivised value addition. "With reforms, Bangladesh's exports could exceed $100 billion within a few years," he said, highlighting sectors such as furniture, light engineering, plastics, and footwear.
Prof Mustafizur Rahman echoed this view from a macro perspective, noting that Bangladesh's inability to attract meaningful FDI has kept its manufacturing base narrow — the core challenge Nasir pointed to.
He said the Seventh Five-Year Plan (2016–2020) had aimed for $31 billion in FDI, but the country managed to secure only $11 billion, barely one-third of the target.
High tariffs squeeze Bangladesh's domestic market
Razzaque said Bangladesh maintains high tariff protection to shield domestic industries, but this has made many products costlier in the local market. As prices rose, demand contracted and the domestic market shrank. The situation worsened over the past three years as inflation stayed close to 10%, steadily eroding consumers' purchasing power, he noted.
"But Vietnam took a different path, focusing on product diversification to boost exports, which created numerous jobs," he said, adding that Bangladesh still relies heavily on a single product: readymade garments.
