IN THE past decade, the youth from economically marginal class in Bangladesh are increasingly seeking employment opportunities in foreign countries, predominantly in the Middle East, Europe, and America. This phenomenon, driven by the allure of quick financial solvency, is becoming a defining characteristic of our labour market. While the immediate economic benefits of remittances are undeniable, this exodus poses a substantial threat to our nation鈥檚 long-term prosperity, particularly when we are approach the end of our demographic dividend.
The desire to work abroad is not unfounded. Foreign employment offers significantly higher wages compared to domestic opportunities. For instance, the average monthly income of a Bangladeshi worker in the Middle East can be up to $400, whereas the domestic average hovers around $100. The promise of better living standards, financial stability, and the ability to support families back home acts as a powerful motivator. According to the Bureau of Manpower, Employment and Training, over 700,000 Bangladeshis migrated for work and contributed significantly to the $22 billion remittance earning in 2022.
Remittances have undeniably strengthened our economy, contributing approximately 7 per cent to the GDP. This earning are vital for millions of households, supporting education, healthcare, and housing. Moreover, remittances provide much-needed foreign exchange, stabilising the national currency and helping to finance our trade deficit. The benefits are particularly pronounced in rural areas, where remittances can constitute a primary source of income, driving local economic activity and development.
The growth in remittance flows to Bangladesh has been significant. Starting from $763.91 million in 1990鈥�1991, remittances have steadily increased, reaching over $22 billion in recent years. The provisional figure for 2023鈥�2024 stands at $8.8 billion, indicating ongoing contributions from the Bangladeshi diaspora. This financial influx continues to play a crucial role in the country鈥檚 economic stability and development.
Bangladesh is the 7th highest recipient of remittances in the world. According to a survey conducted by the Bangladesh Bureau of Statistics, a little more than 30 per cent of remittances are used for food expenditures. Additionally, 18.84 per cent are used for durable and other expenses, including 17.39 per cent for land purchases. Regarding investment and savings, 33.45 per cent of remittances go to investment, and 13.74 per cent to savings. The many different layered use highlights remittances鈥� critical role in sustaining household economies and facilitating upward social mobility.
Despite the advantages of a young workforce, the long-term implications of Bangladesh鈥檚 mass labour migration are concerning. Currently, Bangladesh is experiencing a demographic dividend, where the working-age population is larger than the non-working-age groups. This period, however, is transient. By 2030, the United Nations projects that the dependency ratio will begin to rise as the population ages. This critical window of opportunity demands strategic investments in education, healthcare, and infrastructure to maximise productivity and economic growth.
The mass migration of our workforce undermines this potential. Skilled and semi-skilled workers, who could drive industrial growth and technological innovation, are instead contributing to the economies of other nations. This brain drain reduces our talent pool, stunting the growth of key sectors and reducing overall labour productivity. A 2019 report by the Bangladesh Institute of Development Studies highlighted that by 2025, sectors such as ready-made garments, ICT, and healthcare would require millions of skilled workers. Currently, the country faces a shortage of these professionals, forcing many firms to hire from abroad to fill the gap. This reliance on foreign expertise hampers local industries and increases dependency on external talent.
The migration of IT professionals, scientists, and researchers means that Bangladesh loses out on potential innovation and technological breakthroughs. These skilled workers could develop new technologies, startups, and research initiatives that drive economic growth. Instead, they bolster the economies of more developed countries, leaving Bangladesh behind in the global race for technological superiority.
The economic implications of this brain drain are significant. While remittances from overseas workers provide a substantial source of income, the long-term loss of human capital can outweigh these immediate financial benefits. The reduction in the skilled labour force means that local businesses struggle to expand and compete internationally. Additionally, the educational investments made by the government and families in these individuals do not yield returns within the national economy, as the benefits are reaped by foreign economies.
Socially, the migration of a significant portion of the workforce can lead to demographic imbalances. The remaining population may skew towards younger and older age groups, with fewer working-age individuals to support economic activities and social services. This demographic shift can place additional strain on healthcare, education, and social welfare systems, further hampering national development.
To enjoy the benefits of our demographic dividend, it is important to focus on domestic workforce development. This involves creating conducive conditions for job creation, particularly in industries with high growth potential such as technology, manufacturing, and services. The government has made strides in this direction, with initiatives like the National Skills Development Policy and various vocational training programmes. However, the pace of implementation and the scale of these efforts need to be significantly enhanced.
Investment in education and skill development is crucial. According to the World Bank, only 18 per cent of Bangladesh鈥檚 labour force has received formal training. Bridging this gap requires a strong education system aligned with market needs, nurturing a workforce capable of competing in a globalised economy. Moreover, promoting entrepreneurship and supporting small and medium enterprises can generate employment and drive innovation, making the domestic job market more attractive to our youth.
To mitigate the negative impacts of labour migration, a multi-sided policy approach is essential. This includes enhancing domestic employment opportunities by incentivising industries with high employment potential, such as manufacturing, IT, and green technologies, to create a healthy job market that retains talent. Improving working conditions by ensuring decent work standards, competitive wages, and social security for domestic workers can make local jobs more appealing. Aligning educational curricula with industry needs and expanding vocational training programmes will equip our youth with the skills required for high-demand sectors. Implementing effective labour market policies that balance the supply and demand of labour can reduce the push factors driving migration. Additionally, developing programmes to reintegrate returnee migrants into the local economy, leveraging their skills and experiences, can boost domestic productivity.
Addressing the challenges posed by labour migration requires a collective effort from the government, private sector and civil society. Public-private partnerships can play a pivotal role in driving workforce development, with businesses investing in training programmes and the government providing necessary regulatory support. Civil society organisations can contribute by raising awareness about the long-term impacts of migration and advocating for policies that prioritise national development.
Bangladesh stands at a crossroads. The decisions we make today will determine whether we can capitalise on our demographic dividend or let it slip away. The allure of quick solvency through foreign employment is tempting, but it is a short-term solution that jeopardises our long-term prosperity. By focusing on sustainable workforce development and creating an environment that raises domestic job growth, we can build a future where our youth see their best opportunities at home, contributing to the progress and prosperity of our nation.
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H M Nazmul Alam is a lecturer in English and Modern Languages at the International University of Business, Agriculture and Technology.
