11:52 am, Friday, 7 February 2025

Bangladesh must enhance labor productivity to achieve development goals: ILO

To realise its vision of becoming a high-income country by 2050, Bangladesh must enhance labor productivity by 1.5 percent annually, as highlighted in a recent global report.

The report forecasts a significant decline in the country’s demographic dividend due to an escalating old-age dependency ratio.

The ‘Asia Pacific Employment and Social Outlook 2024’, published by the International Labour Organisation (ILO) on Tuesday, indicates that seven countries in the Asia-Pacific region, including Bangladesh, need to accelerate productivity growth by 2 percentage points or less to attain high-income status.

Bangladesh specifically requires an annual productivity growth rate of 6 percent to achieve high-income status by 2050, compared to the current labor productivity rate of 4.1 percent, it said.

Overcoming structural barriers and expanding training opportunities are crucial to unlocking the potential of the region’s vast workforce, enabling them to access higher-paying, more productive jobs, ILO mentioned.

Furthermore, the ILO report emphasizes the necessity for significant policy reforms and improved implementation of existing standards to address inequalities, enhance labor market prospects for older workers, and establish equitable pension systems to cope with impending demographic changes.

The report projects a surge in Bangladesh’s old-age dependency ratio to 0.23 by 2050 from the current 0.09, surpassing ratios in India, Nepal, and Pakistan.

The Asia-Pacific region as a whole is experiencing rapid population aging, with the proportion of people aged 65 years and above expected to double by 2050, significantly increasing the economic dependency ratio and posing challenges to sustaining economic growth.

Tuomo Poutiainen, ILO country director for Bangladesh, emphasizes the necessity of investing in modern skills and quality employment opportunities to capitalize on the demographic dividends offered by Bangladesh’s youthful labor force.

He also underscores the importance of preparing for the country’s imminent transition into an aging society by 2048, advocating for investments in the development of a care economy and robust social protection systems, including pension schemes.

Despite aging populations, the report suggests that the region can maintain continued per capita income growth over the coming decades through sustained productivity growth.

However, it underscores the significant potential for efficiency and income improvements, as labor productivity in emerging economies in Asia and the Pacific remains substantially lower than in high-income countries across various sectors.

While the Asia-Pacific labor markets have shown resilience since the global pandemic, they still face entrenched challenges compounded by rapid population aging.

The report predicts stagnant unemployment rates in the region for 2024 and 2025, with persistent issues related to working poverty and informality, despite decades of economic growth.

In light of these challenges, the report emphasizes the urgent need for robust social dialogue involving workers, employers, and governments to address multifaceted labor market challenges and ensure access to decent work for all.

Bangladesh must enhance labor productivity to achieve development goals: ILO

Update Time : 08:57:46 pm, Tuesday, 28 May 2024

To realise its vision of becoming a high-income country by 2050, Bangladesh must enhance labor productivity by 1.5 percent annually, as highlighted in a recent global report.

The report forecasts a significant decline in the country’s demographic dividend due to an escalating old-age dependency ratio.

The ‘Asia Pacific Employment and Social Outlook 2024’, published by the International Labour Organisation (ILO) on Tuesday, indicates that seven countries in the Asia-Pacific region, including Bangladesh, need to accelerate productivity growth by 2 percentage points or less to attain high-income status.

Bangladesh specifically requires an annual productivity growth rate of 6 percent to achieve high-income status by 2050, compared to the current labor productivity rate of 4.1 percent, it said.

Overcoming structural barriers and expanding training opportunities are crucial to unlocking the potential of the region’s vast workforce, enabling them to access higher-paying, more productive jobs, ILO mentioned.

Furthermore, the ILO report emphasizes the necessity for significant policy reforms and improved implementation of existing standards to address inequalities, enhance labor market prospects for older workers, and establish equitable pension systems to cope with impending demographic changes.

The report projects a surge in Bangladesh’s old-age dependency ratio to 0.23 by 2050 from the current 0.09, surpassing ratios in India, Nepal, and Pakistan.

The Asia-Pacific region as a whole is experiencing rapid population aging, with the proportion of people aged 65 years and above expected to double by 2050, significantly increasing the economic dependency ratio and posing challenges to sustaining economic growth.

Tuomo Poutiainen, ILO country director for Bangladesh, emphasizes the necessity of investing in modern skills and quality employment opportunities to capitalize on the demographic dividends offered by Bangladesh’s youthful labor force.

He also underscores the importance of preparing for the country’s imminent transition into an aging society by 2048, advocating for investments in the development of a care economy and robust social protection systems, including pension schemes.

Despite aging populations, the report suggests that the region can maintain continued per capita income growth over the coming decades through sustained productivity growth.

However, it underscores the significant potential for efficiency and income improvements, as labor productivity in emerging economies in Asia and the Pacific remains substantially lower than in high-income countries across various sectors.

While the Asia-Pacific labor markets have shown resilience since the global pandemic, they still face entrenched challenges compounded by rapid population aging.

The report predicts stagnant unemployment rates in the region for 2024 and 2025, with persistent issues related to working poverty and informality, despite decades of economic growth.

In light of these challenges, the report emphasizes the urgent need for robust social dialogue involving workers, employers, and governments to address multifaceted labor market challenges and ensure access to decent work for all.