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World Bank notes slow rate of job creation in Bangladesh
03 Oct '17
2 min read
Bangladesh’s economic growth is resilient despite volatile export growth and shrinking remittances, says a new World Bank report. The rate of job creation has slowed down affecting women and youth. Antiquated technology, outdated management practices, and lagging skills contribute to low quality jobs, says ‘The Bangladesh Development Update September 2017’.
Though the country generated, on an average, more than 1.15 million jobs per year between 2003 and 2016, the pace of job creation fell later. Between 2003 and 2010, the total employment grew by 3.1 per cent per annum, whereas between 2011 to 2016 the total employment grew by only 1.8 per cent per annum.
The export-oriented readymade garments (RMG) sector needs to create quality jobs at a large scale, it says.
Stagnant private investment, slow structural reforms, weak export growth and declining remittances are factors hindering job creation. More small and mid-sized enterprises are needed for creating jobs but regulatory barriers and access to finance hinders micro-enterprises’ growth and their earning capacity, the report says.
The country’s GDP growth is projected to be 6.4 per cent in the current fiscal, driven by industry and services. Export growth is likely to pick up modestly with the expected recovery in global trade. Remittances may turnaround, and private investments may pick up.
Bangladesh can accelerate growth and boost shared prosperity through strong macro-structural policy reform and well-coordinated implementation. More jobs can be created through regulatory reforms, planned urbanization, infrastructure development, and building strong second-tier cities and revisiting distortionary industrial policies, the report adds. (DS)
Though the country generated, on an average, more than 1.15 million jobs per year between 2003 and 2016, the pace of job creation fell later. Between 2003 and 2010, the total employment grew by 3.1 per cent per annum, whereas between 2011 to 2016 the total employment grew by only 1.8 per cent per annum.
The export-oriented readymade garments (RMG) sector needs to create quality jobs at a large scale, it says.
Stagnant private investment, slow structural reforms, weak export growth and declining remittances are factors hindering job creation. More small and mid-sized enterprises are needed for creating jobs but regulatory barriers and access to finance hinders micro-enterprises’ growth and their earning capacity, the report says.
The country’s GDP growth is projected to be 6.4 per cent in the current fiscal, driven by industry and services. Export growth is likely to pick up modestly with the expected recovery in global trade. Remittances may turnaround, and private investments may pick up.
Bangladesh can accelerate growth and boost shared prosperity through strong macro-structural policy reform and well-coordinated implementation. More jobs can be created through regulatory reforms, planned urbanization, infrastructure development, and building strong second-tier cities and revisiting distortionary industrial policies, the report adds. (DS)
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