Labour Day: The urgency of valuing workers in financial inclusion

The first of May is not merely a day to demand workers' rights; it is a day to reaffirm our collective commitment to the dignity of labour, fair wages and social justice. 

Yet a fundamental question remains: In the 55th year of our independence, has the worker — upon whose sweat, merit, and tireless toil the foundation of Bangladesh's growth stands — truly become a fair stakeholder in this development?

The economy's lifeblood

The labour force is the soul of the Bangladeshi economy. According to the recent Labour Force Survey (LFS), the number of active participants in the labour market is approximately 71.7 million. This includes roughly 48 million men and 23.7 million women. 

Notably, female participation has surged to nearly one-third of the workforce over the last two decades.

This massive workforce is primarily engaged in agriculture, industry, services, and the informal sector. Data from the World Bank and the Bangladesh Bureau of Statistics (BBS) indicate that the industry and services sectors combined contribute more than 88% to GDP. 

The direct and indirect contributions of working-class people to this growth are undeniable. However, the LFS also reveals a structural reality — 58 million people, or 84% of the total workforce, are still employed in the informal sector.

Behind these numbers lies another reality. Research on skill development suggests that only 15% to 20% of the total labour force is considered relatively skilled; the vast majority remains semi-skilled or unskilled. 

This skill gap not only limits individual income but also hinders national productivity. While Bangladesh is undoubtedly strong in the quantity of labour, there is a long road ahead in improving its quality.

Two pillars, one story

The ready-made garment (RMG) sector is the most visible pillar of our economy, employing about 4 million workers, 65% of whom are women. More than 80% of the country's total export earnings come from this single sector. 

Similarly, Bangladesh's growth story would not have progressed this far without the relentless labour of millions in construction, transport, agriculture, and small enterprises.

The other pillar consists of migrant workers. A large portion of the 15 million Bangladeshis working in 176 countries are labourers. Each year, they send home remittances exceeding Tk2.5 trillion to 3 trillion. 

This money flows through every artery of the nation — from foreign exchange reserves and the rural economy to consumer spending and small-scale investments. In essence, the lifeblood of "export" and "remittance" originates from the workers of Bangladesh.

Those in the informal sector, in particular, lack access to social security, pensions, insurance, or emergency savings. For many, the moment income stops, they slide back into the clutches of poverty. No matter how glittering the development statistics may be, this fragility of the working class is an uncomfortable truth for the national economy.

Contribution vs protection

Despite this immense contribution, how well is the financial security of workers valued? Amid high inflation, limited wage growth, health risks, workplace accidents, and job insecurity, a vast number of workers remain financially vulnerable. 

Those in the informal sector, in particular, lack access to social security, pensions, insurance, or emergency savings. For many, the moment income stops, they slide back into the clutches of poverty. No matter how glittering the development statistics may be, this fragility of the working class is an uncomfortable truth for the national economy.

From financial inclusion to empowerment

Financial inclusion is not just about opening a bank account; it is the cornerstone of economic resilience. Proper financial planning, secure savings, easy transactions, low-interest loans, micro-insurance, pensions, and digital payments — together, these lead a worker from uncertainty towards stability. Gradually, this paves the way for true financial empowerment.

Bangladesh Bank has been playing an active role in this regard. Efforts are underway to bring farmers, workers, the ultra-poor, migrants, and marginalised groups into the formal financial system through "no-frills" accounts (with balances of Tk10, 50, or 100), using bank branches, sub-branches, agent outlets, and digital platforms. 

Additionally, initiatives such as mobile financial services (MFS), refinance schemes, and the digital disbursement of wages and loans are commendable.

According to the latest Bangladesh Bank report (Oct–Dec 2025), the number of such accounts has reached approximately 29.23 million, with deposits totalling about Tk51,165 million. During the reporting period, these accounts received Tk8,270 million in remittances. 

Furthermore, by December 2025, nearly Tk9,010 million in low-interest loans had been distributed to 102,606 customers from a Tk7,500 million refinance scheme fund, boosting income-generating activities for low-income individuals.

However, inclusion and empowerment are not synonymous. Having an account without savings, or a digital wallet without an understanding of financial planning, represents incomplete success. The next step must be moving beyond "access" towards full financial "empowerment".

Global lessons for Bangladesh

Experiences from other nations can offer a roadmap. In Germany, worker representation is a core part of the production structure. In Sweden, a robust social protection system provides long-term stability to the labour market. 

Singapore's mandatory savings-based model ensures future security for workers, while South Korea has made skill development an integral part of its industrial policy. The collective message is clear: spending on worker welfare is not an "expense" — it is a direct investment in productivity.

Leveraging global expertise, Bangladesh must focus on four key areas immediately:

Firstly, the expansion of worker-friendly financial products: it is not enough for micro-pensions, low-cost health insurance, and emergency savings schemes to exist; they must be genuinely accessible to low-income people.

Secondly, workplace financial literacy: receiving a salary and managing money are two different things. Regular training on budgeting, saving, managing debt, understanding digital security risks, and retirement planning is essential. Financial inclusion without literacy is often only a partial solution.

Thirdly, turning digital wages into wealth-building platforms: if micro-savings or insurance premiums are automatically deducted from digital payroll accounts, this can build a foundation for long-term security. Policy intervention at the state level is vital here.

Fourthly, portable social protection structures: a national framework should ensure that even if a worker changes jobs, their savings, insurance, and benefits remain intact. This would be one of the most critical reforms for the future.

Furthermore, it is time to rethink our approach to migrant workers. Remittances should not merely serve as a source of family consumption; with the right policy support, they can become a powerful tool for asset building. Ensuring savings instruments, investment facilities, health insurance for families, and rehabilitation-oriented financial products for returnees is crucial.

Workers: Human capital, not just a cost

We often view workers merely as a "cost", but in economic terms, they are human capital. Gary Becker and Theodore Schultz, the pioneers of human capital theory, popularised the idea that investing in education, skills, and training is the ultimate driver of growth — a concept whose roots go back to Adam Smith.

We must remember that a financially secure worker is more productive, less risk-prone, and more effective for the economy in the long run. Therefore, the financial inclusion of workers is not just a demand for social justice — it is a calculated strategy for sustainable growth.

Bangladesh aspires to become an upper-middle-income country. But that aspiration will never be fully realised if workers are not at the centre of development. While GDP growth rates measure a country's progress, the true quality of development is reflected in the lives of its working people.

May Day is not just a day for slogans; it is a day for policy realignment. It is a day to see workers not merely as labour providers, but as economic partners. Their financial security is not an act of charity — it is a matter of fairness. Their empowerment is not just welfare — it is a strategic economic reform. Without them, inclusive development will remain incomplete.

This May Day, the question is simple: will we keep workers at the periphery of development, or place them at its centre? The sustainable future of Bangladesh depends on that answer.

M M Mahbub Hassan is a banker, development researcher and author.