Breaking out of the trap of low-skilled labour
Remittance plays a big role in Bangladesh’s economy; however, little attention is paid to preparing the migrant workforce for the challenges that lie ahead
Remittance is one of the highest contributors to the GDP of Bangladesh. In FY20-21, it made up 6.03% of our GDP. Despite the importance of migrant worker remittance, the long-term prospects of this sector are gloomy, because little has been done to upgrade and improve their skills for the future.
According to the International Organization for Migration (IOM) most women from Bangladesh work as domestic assistants, and most men work in construction abroad. These low-skill jobs pay little. Bangladeshi migrant workers are among Asia's lowest-paid.
Inadequate government policy
The Ministry of Expatriates' Welfare and Overseas Employment has 70 technical training centres across the country offering various skill-based courses.
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According to the eighth Five Year Plan, the plan was to send 1,000 workers abroad from each upazila in 64 districts through the District Employment and Manpower Offices (DEMO). The Ministry also planned to train 5 million migrant workers, out of which half would be highly skilled.
Yet, after two fiscal years since the plan was enacted, there has been negligible implementation. A vast gulf still exists between upazilas regarding recruiting migrant workers and skill development. Hence the country has witnessed a decline of 15% in remittance inflow in FY-22.
The recent pandemic also witnessed an unprecedented number of migrant workers returning to the country. According to the reports of the Expatriate Welfare Desk, from April to September last year, about 1,11,111 migrant workers returned.
Apart from the development of migrant workers, their re-inhabitation prospects are worrisome. Workers returning from abroad find it hard to land good jobs because they lack skills.
As reported by IOM, 70% of these migrant workers face trouble finding a job upon returning. This has strengthened the notion that this demographic has been deprived of skills indispensable to their livelihood. Although, in the national budget of the current fiscal year, special emphasis is given to the employment of returned migrant workers.
Migration agencies and middlemen
The government has failed to create a fair business environment for migration agencies. For instance, only 25 out of 1,700 manpower agencies are allowed to send migrant workers to Malaysia, which is against fair competition and even violates the laws of both countries.
Migrant workers often seek jobs through a "middleman" who helps them find job opportunities in exchange for a commission. There are often reports of these middlemen defrauding migrant workers for their money. But in these situations, workers can't even pursue any legal action against them because the amount paid to the recruiting agents is mentioned in the papers, minus the extra amount held by the intermediaries.
Migration opportunities are not equally distributed all over the country. Citizens of certain regions are advantaged in terms of positive influence and tend to have greater opportunities to go abroad to earn their living.
A crude measure of this inequality is that only 5-7 agencies actively carry out recruiting operations in the country's northern regions. One of the northern districts, Gaibandha - has no recruiting agencies, causing low migration opportunities for potential workers in that region.
Education
Our inadequate education system hinders skill-based labour force development. Tertiary education has not traditionally prepared students to become migrant workers. Theory dominates, with little actual knowledge of international work abilities.
The students who have graduated from certain technical and vocational institutions are referred to as 'engineers'. Unfortunately, none of these graduates are treated as such globally because of their lack of practical skills and knowledge.
In the year 2019, skilled migrant workers were 43.55% of total migrant workers, among which only 0.27% were considered to be actual professionals.
Steps towards progress
"Just and Fair" migration is required to minimise the imbalance of opportunities among different areas of the country and employment through middlemen. A 500-5000 quota system for migrant workers should be introduced for all unions.
The incentive of 2.5% given to the migrant workers for their remittance should be increased to 5%, which can be divided into 2.5% in the present, and 2.5% in the future as a pension for the workers. The workers should also get free passport renewal cards and a 20% discount on the plane fare.
Probashi Kallyan Bank has introduced migrant-friendly loans. According to Ovibashi Karmi Unnyan Program (OKUP) reports, from 2011 to 2019, only 111 returned migrant workers were issued loans, which eventually increased to 12,680 during the last two fiscal years. It is necessary to provide migrant workers lessons in financial literacy for the long-term benefit of their hard-earned money, as in most cases, the spending patterns of the migrant workers are not sustainable.
Bangladesh can learn from other countries to successfully upgrade the skills and lifestyle of workers in the long term. For instance, the Philippines, along with the International Labor Organization (ILO), formed the Technical Cooperation Program, which focused on the welfare and protection of migrant workers. Their policies included the upgrading of the capacity of the migrant workers and their savings. Under this program, various successful services were provided to the workers from time to time, ensuring the workers' uplifting.
Moreover, in collaboration with the International Organization of Migration (IOM), National Skill Development Corporation (NSDC) and UN Women, India is arranging workshops as a part of the training of the migrant workers every year.
Bangladesh needs proper policy reform for the development of migrant workers. Increased opportunities, reliable institutions, adequate skill development and higher budget allocation, are prerequisites for their future standard of living. Without such steps, following generations could be caught in a trap of low-skilled labour - widening the gap between income groups.
Zahrah Rahman is an Economics graduate from BRAC University.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.
