Bangladesh built its economic rise on labour-intensive manufacturing. But the employment model that powered this growth is coming under increasing strain. Automation, artificial intelligence (AI), and evolving production systems are reshaping the future of work in manufacturing and transforming emerging high-value and digital service sectors. These shifts are unfolding at a time when large segments of Bangladesh’s workforce already remain excluded from secure and productive employment. Young people, women, and persons with disabilities are especially vulnerable because they are disproportionately concentrated in insecure, informal, or automation-exposed segments of the labour market, with limited access to reskilling and adaptation mechanisms. An estimated 40 per cent of Bangladesh’s workforce could be exposed to AI- and automation-related disruption.
The pressures are likely to intensify as Bangladesh approaches LDC graduation. The withdrawal of preferential trade access will sharpen competitive pressures in export sectors, particularly RMG, accelerating the shift towards automation and higher-productivity production systems.
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Automation is reshaping the future of work in Bangladesh’s RMG industry. Photo: The WSJ
Bangladesh’s labour market is already under pressure. The most recent official labour market data indicate a decline of approximately 1.3 million jobs in 2024, with around 90 per cent of those losses affecting women. The new government has taken office and promised to create 10 million jobs over the next five years. However, the pressing question remains: what types of jobs will be on offer?
The challenge is not only that Bangladesh’s labour market already struggles to generate inclusive employment, but also that these weaknesses are becoming more consequential as the nature of work itself changes. This piece argues that Bangladesh is on the verge of the ‘future of work’ era with significant structural vulnerabilities and that existing policy frameworks remain inadequately prepared for the transition ahead.
Why Bangladesh is vulnerable to the future of work
Bangladesh’s labour market is entering this transition from a position of structural weakness. Manufacturing employment has stagnated despite rising output, while much of the expansion in high-value digital services has taken place through insecure and uneven forms of employment with limited social protection. Growth continues without creating enough productiv