Poor productivity in Bangladesh RMG, leather sectors due to skill gaps
21 May 23 2 min read
Insights
- Bangladesh's labour-incentive industries like readymade garments, leather and footwear have a substantial gap—ranging between 45 per cent and 70 per cent—in the skillsets of workers, according to studies.
- These lead to low productivity in factories and the hiring of foreign workers at managerial levels, leading to a loss of foreign currency.
These skill gaps lead to low productivity in factories and the hiring of foreign workers at managerial levels, leading to a loss of foreign currency, the studies found.
The research was conducted between 2021 and 2022 under the government's Skills for Employment Investment Programme (SEIP).
A study focused on the RMG sector found that 6.5 per cent of woven industries and 2.99 per cent of knit industries expressed the need to hire skilled foreign workers to address the skill gap, particularly at the managerial level.
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- Surge in Bangladesh freight rates again: Reports
- Inflation in Bangladesh rises to 9.89% in May from 9.74% in April
- Bangladesh receives $3.004 bn in FDI in 2023, a decrease of 14% YoY
- April import LC openings in Bangladesh down 7% MoM, up 20% YoY
Around 50,000 foreigners are currently working in Bangladesh due to the lack of skilled leadership in managerial positions, resulting in an annual loss of $5-6 billion, Sanwar Jahan Bhuiyan, deputy executive project director of SEIP, told an event.
The knitting industry faces a skill gap of 68.79 per cent, whereas the woven industry has a slightly lower gap of 47.83 per cent, according to assessments by employers. Helpers, most sewing machine operators, quality inspectors and some finishing operators in the knitting industry exhibit a higher skill gap compared to others.
On the other hand, management employees, quality controllers, and some finishing operators contribute to a larger share of the overall skill gap among employees in the woven industry, Bangladesh media reports said.
Fibre2Fashion News Desk (DS)
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