Bangladesh's Overseas Employment Soars in November, but Is It Sustainable?
The Numbers:
- November saw a 28% surge in Bangladeshis working abroad, yet this figure is 3% less than November 2022.
- Approximately 100,000 Bangladeshis found jobs overseas, with Saudi Arabia employing over 64,000.
- The Saudi Skill Verification Program's impact is easing, but recruitment in Qatar, Singapore, and Kuwait remains subdued.
- Remittances soared by 31% YoY, reaching $2.89 billion in November.
Bangladesh's overseas employment market witnessed a significant boost in November, primarily due to Saudi Arabia's efforts to clear a backlog of applications. This surge comes after a challenging period caused by the introduction of the Saudi Skill Verification Program (SVP), which mandated skills certification for low-skilled workers. The program initially slowed recruitment, but recent relaxations have eased the process.
But here's where it gets controversial: Despite the 28% monthly increase, the year-on-year comparison reveals a 3% decline. This raises questions about the sustainability of the current growth. Labour recruiters attribute the rise to the gradual clearance of applications affected by the SVP, known as Takamul. BMET's increased capacity to conduct tests under this program has been instrumental in clearing the backlog.
Saudi Arabia's recent policy changes have impacted the overseas employment landscape. The mandatory SVP for low-skilled workers created challenges, but temporary relaxations for certain roles, like cleaners, have provided some relief. With over 3.2 million Bangladeshi workers in Saudi Arabia, mostly in low-skilled jobs, these policy shifts have significant implications.
A deeper dive: Over 80% of Bangladeshi workers in Saudi Arabia are employed in low-skilled sectors, earning around Tk30,000 monthly. The SVP's initial implementation caused a slowdown, but with BMET's efforts, the situation is improving. In November, Bangladesh sent nearly 100,000 workers abroad, a substantial increase from October's figures.
The bigger picture: While Saudi Arabia remains the top destination, recruitment in other major markets like Qatar, Singapore, and Kuwait is relatively low. Traditional labor destinations such as Malaysia, Oman, and Bahrain have seen a significant decline in Bangladeshi workers since the pandemic. Pre-pandemic figures of 60,000-70,000 workers per month have risen to nearly 100,000 in recent years, but the distribution across markets is uneven.
And this is the part most people miss: Among European countries, Portugal and Italy stand out with over 700 workers recruited each in November. Meanwhile, remittances, a vital economic lifeline, jumped by 31% YoY, reaching $2.89 billion. This rise is attributed to a decrease in hundi operations and a more stable dollar rate, according to Bangladesh Bank.
In conclusion, while November's employment figures are encouraging, the year-on-year comparison and the concentration of workers in a few markets raise questions about the long-term sustainability of this growth. What do you think? Is this a temporary surge or a sign of a robust recovery in Bangladesh's overseas employment sector?
