The road from cheap labour to a skilled workforce

Our country has long been recognised for its abundant labour force. In addition, this abundance has often been labelled as "cheap labour", a term that underscores a missed opportunity for a prospective nation.

Some try to establish the label as an advantage to bring investment, but in the end, it is, of course, an intention to hide the vast opportunity ahead. A substantial portion of our workforce lacks the necessary skills and education to command higher wages both domestically and internationally. As a result, individual earnings remain low, and the remittance earnings from overseas are insignificant despite the large number working abroad.

As we stand to cross the line to graduate from LDC, it is imperative to shift the narrative and invest in transforming our labour force into a skilled and productive asset.

Bangladesh received a record-breaking $26.89 billion in remittances in 2024, with nearly 1.01 million workers going abroad for employment. It is a matter of great distress that the majority of these workers are engaged in low-skilled jobs, limiting their earning potential.

To unleash the true potential of our labour force, we need both short-term impactful and long-term sustainable strategies. These strategies, followed by the desired transformation, will boost our economy and improve the lifestyle of thousands of our people. As an example, we can talk about the Philippines, as they became the largest exporter of nurses globally, supplying 25 percent of all overseas nurses. We, as a nation, have yet to tap into such types of high-skilled labour markets, where excellence matters.

Short-term strategies will include plenty of training programmes focusing on high-demand sectors like caregiving, hospitality, tailoring, driving, basic electronics, or information technology. These programmes should be accessible across all districts to ensure widespread participation. To accommodate such modern needs, we need to upgrade our training centres, technical support, and vocational education system.

Our training institutions should be equipped with modern facilities, and curricula should be aligned with contemporary industry trends and global requirements. Introducing digital skill passports or digital certification that records workers' skills and training will make it easier for employers, both locally and internationally, to verify their qualifications.

Gender-inclusive training programmes should be tailored for women in occupations such as healthcare and education. Along with this initiative, an attached childcare support service will encourage participation. We must collaborate with the private sector to design and implement training programmes that meet current industry requirements and also ensure ready jobs for skilled graduates.

A sustainable long-term roadmap is a must to ensure a skilled labour force. Incorporating vocational subjects into the national curriculum from secondary education onwards, allowing students to accrue hands-on skills alongside educational knowledge, is a practical way forward. Countries like Vietnam have successfully transformed their labour force from low-skilled to high-skilled markets by investing heavily in education and vocational training.

Establishing sector/cluster-specific skill hubs might be a game changer. For example, maritime training centres in Chattogram, leather-related training centres in Savar, and advanced tailoring training centres in Gazipur and its surroundings might be effective initiatives.

Encouraging international companies to invest in training facilities by offering incentives is essential. Joint collaboration with them can help our resources develop adequate skillsets and make them fit for international standards.

The government should also initiate a national skill development fund to support long-term initiatives, particularly for marginalised groups, to ensure inclusivity.

The government should also implement policies that promote equal opportunities for all genders in skill development programmes, addressing barriers that hinder women's participation in the workforce.

The journey from "cheap" to "skilled" labour is not just an economic imperative but a national one. We must change our status from exporting labour to exporting skills. Our country will not be a haven for cheap labour anymore; rather, we will transform and render ourselves into a labour excellence republic. This transformation will not only increase individual earning potential but also boost national economic growth through higher remittances and enhanced national productivity.

The author is a senior banker.