Study: 8% GDP needed to absorb surplus labour force in 15 yrs

The study titled “Bangladesh Employment Diagnostic Study Looking Beyond Garment” conducted by Asian Development Bank in collaboration with International Labour Organisation (ILO) was launched yesterday in the capital yesterday. “Growth should be focusing the employment generation as Bangladesh has surplus workforce which need to be absorbed to maintain an inclusive growth,” said Rizwanul Islam, lead research consultant of the study. According to the study, Bangladesh has to create jobs for 1.8 million people to absorb new entrants to the labor force. It has to generate employment for 2.51 million people per annum to absorb the surplus labor in 15 year. During his presentation Islam said: “Bangladesh is a source of low skilled lobor force, is the perception about Bangladesh in the global market.” To change the perception, Bangladesh has to upgrade skill training, create awareness about the availability of skills and showcase its ability through its mission in abroad and bilateral negotiation, he suggested. While the migration cost is too high, it needs to be reduced and the authority should take steps to stop abuse and harassment of migrant people, he added. To reduce higher dependency on RMG sector, the study suggested diversification of products within agriculture and to concentrate on the thrust sector like leather and pharmaceutical. “For creating inclusive and sustainable growth, growth has to create jobs. Skills have to be top priority in eliminating the poverty,” said ILO Bangladesh Country Director Srinivas B Reddy. Stressing on workers’ skill, Reddy said: “Provide education to young men and women to be leader. Rights of workers are important for inclusive growth.” “It is important to continue the support to RMG sector for further growing and also look at a non-discriminating policy for ensuring level playing field for the other sectors,” said Reddy. The study stated that sustainable economic growth has been associated with some positive development in the labor market like increase in the proportion of working age population from 58% to 69% in 2013, opening the possibility of demographic dividend.