Recruiting agency mushrooming amid shrinking migration market

Highlights

• Substandard agencies weaken labour market 
• BMET okays over 250 agencies afresh
• Nearly 1,577 agencies approved from 2015-23
• Existing agencies exceed current market demand, fuel illegal visa trading
• Bangladesh has more agencies than India 
• Country's migration market largely relies on Middle East 

Despite a government white paper flagging the unchecked expansion of recruiting agencies as a major structural weakness in Bangladesh's labour migration sector, the interim government has approved over 250 new recruiting licences, raising concern among all over migration costs, graft and market instability.

TBS Infograph

The White Paper on the State of the Bangladesh Economy, published in late 2024, identified the increase of recruiting agencies during the Sheikh Hasina regime as a key governance failure. According to the document, the number of licensed recruiting agencies rose from 923 in 2015 to nearly 2,500 by 2023, fuelled by political patronage, weak oversight and corruption.

Surprisingly, the interim government has continued the trend as on 4 November last year, the Bureau of Manpower, Employment and Training (BMET) approved 252 new recruiting licences, raising the total number to 2,646.

Migration experts argue that the number of agencies far exceeds market demand—particularly at a time when Bangladesh's overseas labour market is shrinking.

Regional comparison and market imbalance

Sector insiders note that Bangladesh now has unexpectedly more recruiting agencies than neighbouring countries. Nepal operates with about 1,041 agencies, Myanmar 600, India 1988, and Pakistan 2,400.  

In a shrinking market, Bangladesh's 2,646 agencies are clearly excessive, said migration experts, warning that intense competition fuels illegal practices, particularly visa trading.

Official migration costs are set by the government, but workers often pay three to four times more in reality. Experts say illegal visa trading is the main driver of inflated costs.

Bangladesh remains heavily dependent on Middle Eastern destinations. In 2025, around 11.25 lakh workers were migrated abroad, with more than 9 lakh migrating to the Middle East, even key markets such as Oman, Malaysia and Bahrain remain closed.

Most agencies avoid developed-country markets due to stricter compliance requirements, further concentrating risks.

Contradictory licensing policy

According to the Refugee and Migratory Movements Research Unit (RMMRU), the government cancelled licences of 188 agencies and suspended 191 in 2025. Yet in the same year, it approved 252 new licences, undermining the stated objective of reducing agency numbers.

"This contradictory approach has weakened governance and made accountability nearly impossible," said Dr Tasneem Siddiqui, founding chair of RMMRU and a member of the white paper committee.

She said Bangladesh realistically needs no more than 500 to 800 recruiting agencies. "Increasing the number of agencies does not reduce migration costs. The government should instead cancel licences of those involved in corruption, syndication, and irregular recruitment," she told The Business Standard.

Echoing similar concerns, Migration expert Dr Mohammad Jalal Uddin Sikder said, "At a time when the labour market is shrinking, expanding the number of recruiting agencies is exactly the wrong policy," calling for strict monitoring, accountability, and a transparent ranking-based system.

Concerns over licence abuse

Sources within the Bangladesh Association of International Recruiting Agencies (BAIRA) said many new licensees previously worked abroad as migrant workers and were involved in visa trading before entering the recruiting business, raising concerns about further malpractice.

Dr Sikder also alleged systemic abuse of the licensing process. "In many cases, one individual controls multiple licences—under their own name or through relatives and associates. If one licence is cancelled, business continues under another," he said.

RMMRU recommended reducing agency numbers through a systematic process, including revoking licences held by a single family and confiscating licences of agencies involved in fraud.

How the sector expanded

Under the 2019 Recruiting Agencies Rules, BMET issues and renews licences. From 1976 to 2015, nearly 935 licences were issued—an average of 20–30 per year.

In contrast, between 2018 and 2023, 1,185 new licences were issued, including around 800 in just 2022 and 2023. The white paper noted that politically influential recruiters used their positions to shape policies and bypass fair competition.

Official response

A senior BMET official said licensing decisions are ultimately taken at the ministry level. BMET verifies applications and forwards them for approval.

Sources at the Ministry of Expatriates Welfare and Overseas Employment said over 400 applications had been pending for nearly three years, and denying approvals would have caused financial losses, as applicants had already deposited Tk35 lakh plus additional fees. 

Former BAIRA secretary general Shamim Ahmed Chowdhury Noman defended the approvals, saying many applications were submitted during the previous regime. "The government should focus on developing systems and opening new markets," he said.

Despite repeated attempts, Expatriates' Welfare Adviser Asif Nazrul and Senior Secretary Dr Neyamat Ullah Bhuiyan could not be reached. A ministry official, however, said the licences were granted to make the sector "more competitive and efficient."

Experts warned that without reform, Bangladesh's labour migration sector faces escalating risks for workers and governance alike.