The Vital Role of Migrant Workers in Bangladesh’s Development

Migrant workers have long been a cornerstone of Bangladesh’s economic and social progress, serving as unsung heroes who fuel the nation’s growth through their hard work and remittances. With over 10 million Bangladeshi migrant workers employed globally, their contributions are critical to the country’s development. However, these workers face significant challenges, including high migration costs, exploitation, and lack of reintegration support upon return. This article explores the immense contributions of migrant workers to Bangladesh’s economy, the problems they encounter, and actionable solutions the government can implement to ensure their welfare and maximize their impact on national development.

The Economic Impact of Migrant Workers in Bangladesh

Migrant workers play a pivotal role in propelling Bangladesh’s economic activities, particularly through remittances, which are a lifeline for the nation’s economy. In 2022, expatriate workers remitted approximately USD 21.8 billion, equivalent to 4.6% of Bangladesh’s Gross Domestic Product (GDP). These funds have been instrumental in reducing poverty, especially in rural areas, where remittances act as informal safety nets, improving access to health, education, and nutrition. According to World Bank estimates, from 2000 to 2016, poverty fell faster in migrant-sending districts, with a 1.7% reduction in poverty for every 0.1% increase in a district’s population migrating internationally.

Beyond remittances, migrant workers contribute to job creation and economic diversification. Over 1.3 million jobs are created annually through migration, both abroad and domestically, as remittances stimulate local economies through increased consumption and investment. The inflow of foreign currency strengthens Bangladesh’s foreign exchange reserves, helping to stabilize the economy and fund import-export deficits. In 2020, remittances helped boost forex reserves to about USD 36 billion, underscoring their importance as a key economic pillar alongside the ready-made garments (RMG) sector.

Migrant workers also bring back skills and expertise that can enhance local industries. For instance, returnees with experience in construction, hospitality, or healthcare can contribute to Bangladesh’s domestic workforce if properly reintegrated. Their global exposure fosters entrepreneurship, with many returnees starting small businesses that create jobs and drive local economic growth.

Challenges Faced by Migrant Workers

Despite their significant contributions, Bangladeshi migrant workers face numerous challenges that undermine their welfare and limit their ability to contribute fully to national development. These challenges span the entire migration cycle, from pre-departure to employment abroad and reintegration upon return.

1. High Migration Costs

The cost of migration is a major barrier for Bangladeshi workers. According to the Bangladesh Bureau of Statistics’ 2020 Cost of Migration Survey, it takes an average of 17 months for workers to recover the money spent on securing jobs abroad. Costs often exceed BDT 300,000 (approximately USD 2,500), with some paying over BDT 500,000. These expenses are driven by visa trading, exploitative recruitment practices, and reliance on intermediaries or unregulated sub-agents. Many workers take out high-interest loans, plunging them into debt before they even begin earning.

2. Exploitative Recruitment Practices

Non-transparent recruitment processes, including syndication and vested interests, erode trust in the migration system. Many workers are deceived with fake documents or false job promises, only to face joblessness or underpayment abroad. The proliferation of recruiting agencies, often operating without proper oversight, exacerbates exploitation. Unregulated sub-agents further complicate the process, charging exorbitant fees and providing little accountability.

3. Insecure and Low-Paying Jobs

Migrant workers, particularly women, often find themselves in low-skilled, low-paying, and informal jobs with limited labor rights. Women migrants, who made up 13.85% of outbound workers in 2018, are especially vulnerable, frequently employed in unstable domestic or caregiving roles. Abrupt contract terminations and lack of notice leave them stranded, with little recourse to seek justice.

4. Health and Safety Risks

Migrant workers face significant health and safety risks abroad, as illustrated by cases like Abdus Salam and Jewel. Salam, a tea stall owner, fell seriously ill in Oman and returned to Bangladesh without resources, while Jewel, a construction worker, suffered a spinal injury in Malaysia, rendering him paralyzed. Such incidents highlight the lack of medical support and insurance for migrant workers in destination countries.

5. Challenges in Remittance Management

The governance of remittances remains a significant issue. A lack of trust in formal banking systems drives workers to use insecure and expensive informal channels, leading to financial losses. Since 2023, Bangladesh has recorded slower growth in remittances, reflecting a broader crisis of trust in financial institutions.

6. Reintegration Difficulties

Returning migrant workers often face economic and social challenges, including unemployment, debt, and social stigma. The COVID-19 pandemic exacerbated these issues, with over 400,000 workers returning home in 2020 due to layoffs and border closures. Many returnees, like Salam and Jewel, struggle to repay migration debts and lack access to quality jobs or reintegration support. The absence of comprehensive reintegration programs leaves them vulnerable to poverty and social ostracization.

7. Impact of Global Crises

Global economic uncertainties, such as the COVID-19 pandemic and the 2014-16 oil price collapse, have reduced job opportunities in key destination countries like the Gulf Cooperation Council (GCC) nations. Workforce nationalization programs in countries like Saudi Arabia have led to layoffs and deportations of Bangladeshi workers, further complicating their prospects.

Government Solutions to Support Migrant Workers

To address these challenges and maximize the contributions of migrant workers, the Government of Bangladesh must adopt a holistic, whole-of-government approach. Drawing from ongoing reforms, international best practices, and recommendations from organizations like the International Labour Organization (ILO) and the World Bank, the following solutions can enhance migrant welfare and economic impact.

1. Strengthening Recruitment Oversight

The government should establish robust accountability mechanisms to eliminate visa trading and monopolistic practices. This includes enforcing transparent recruitment processes and cracking down on unregulated sub-agents. The Ministry of Expatriates’ Welfare and Overseas Employment (MoEWOE) should conduct regular audits of recruiting agencies and impose strict penalties for exploitative practices. Digital solutions, such as integrated labor registries and connecting BMET cards with immigration databases, can enhance transparency and traceability.

2. Reducing Migration Costs

To alleviate the financial burden on migrant workers, the government can subsidize migration costs or provide low-interest loans through institutions like Probashi Kallyan Bank. Negotiating bilateral agreements with destination countries to cap recruitment fees and eliminate intermediaries can further reduce costs. The government should also promote financial literacy to encourage workers to use formal banking channels for remittances, reducing reliance on costly informal systems.

3. Enhancing Skills Development

Lack of skills is a key reason for workers’ vulnerability abroad. The government should align technical training with global labor market demands, focusing on high-value sectors like nursing, health technology, and hospitality. Public-private partnerships can improve training quality, while competency-based programs emphasizing soft skills can prepare workers for better-paying jobs. Drawing lessons from countries like the Philippines and Indonesia, Bangladesh can develop tailored social protection schemes for migrant workers.

4. Supporting Reintegration Programs

The government’s Wage Earners’ Welfare Board Act, 2018, and the World Bank-financed Recovery and Advancement of Informal Sector Employment (RAISE) Project are steps in the right direction. Expanding Migrant Workers Welfare Centers to all districts, as currently established in 30 districts, can provide returnees with counseling, medical support, and financial assistance. Simplified loan procedures and business advisory services can help returnees start small businesses, reducing the need for re-migration.

5. Protecting Women Migrant Workers

Gender-responsive policies are critical to ensuring the safety and empowerment of women migrant workers. The government should implement time-bound interventions to increase women’s participation in formal migration channels, provide pre-departure training tailored to their needs, and negotiate agreements with destination countries to ensure safe working conditions. Establishing dedicated support desks for women at Migrant Workers Welfare Centers can address their unique challenges.

6. Improving Financial Governance

Transparent management of migrant welfare funds, such as those delivered through the Wage Earners’ Welfare Board and Probashi Kallyan Bank, is essential. The government should strengthen anti-corruption measures and enhance law enforcement to rebuild trust in formal banking systems. Digital platforms for remittance transfers can reduce costs and improve efficiency, ensuring workers retain more of their earnings.

7. Exploring New Labor Markets

With declining opportunities in traditional markets like the GCC, the government should explore new labor markets in Africa and Europe, particularly in agriculture and healthcare. Regularizing undocumented workers, as seen in ongoing talks with Malaysia, can secure employment for thousands. Establishing a Market Research Unit within the MoEWOE, as outlined in the Overseas Employment Policy 2016, can help identify emerging opportunities and prepare workers accordingly.

8. Partnering with International Organizations

Collaborations with organizations like the ILO and the Swiss Agency for Development and Cooperation (SDC) can bolster reintegration and governance reforms. For example, the recent agreement between the government and the ILO aims to enhance policies and systems for sustainable reintegration. Leveraging such partnerships can provide technical expertise and funding to scale up initiatives.

Conclusion

Bangladeshi migrant workers are indispensable partners in the nation’s development, driving economic growth through remittances, job creation, and skill transfer. However, their journey is fraught with challenges, from exploitative recruitment to reintegration difficulties. By implementing comprehensive reforms—such as transparent recruitment, skills training, gender-responsive policies, and robust reintegration programs—the Government of Bangladesh can protect these workers’ rights and amplify their contributions. A whole-of-government and whole-of-society commitment is essential to ensure migration is safer, fairer, and more dignified, paving the way for sustainable economic development.

By addressing these challenges and investing in migrant workers’ welfare, Bangladesh can honor their sacrifices and build a stronger, more inclusive economy. For more information on supporting migrant workers, visit x.ai/grok or explore resources from the International Labour Organization and the World Bank.