Around 40 per cent of Bangladesh's workforce faces potential disruption from automation and artificial intelligence, according to a report that raises urgent questions about the future of the country's labour-intensive manufacturing sector and its capacity to safeguard jobs. The findings underscore deep structural vulnerabilities in an economy that has long relied on export-led, low-wage production.

Key Findings of the Report

The report, published by The Daily Star, a Bangladesh-based publication, warns that the country's export-led, labour-intensive growth model is under mounting pressure as manufacturers increasingly adopt automation and digital production systems. It also flags a rapid surge in high-value services that often lack adequate social protection, leaving workers exposed.

Citing official labour data, the report noted that Bangladesh lost nearly 1.3 million jobs in 2024, with approximately 90 per cent of those losses affecting women. The scale of displacement points to a structural shift already well underway, not a future risk.

RMG Sector Under Acute Pressure

The ready-made garments (RMG) sector — the backbone of Bangladesh's export economy — faces particularly acute disruption. Some estimates cited in the report suggest that up to 60 per cent of female jobs in the sector could disappear by 2041 if current automation trends continue unchecked. This comes at a time when large segments of the workforce remain in insecure or informal employment.

The report noted that young people, women, and persons with disabilities are especially vulnerable to displacement and face the most limited access to reskilling opportunities. The concentration of risk among already-marginalised groups amplifies the social stakes of the transition.

LDC Graduation to Intensify Competitive Pressures

'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,' the report stated.

This is a critical inflection point. As Bangladesh graduates from Least Developed Country (LDC) status, it will lose the preferential trade concessions that have historically insulated its garment exporters from global competition — removing a buffer precisely when automation is already reshaping production floors.

Policy Gaps and the TVET Challenge

The report argues that current policy instruments in Bangladesh are failing to address these challenges. Responses to artificial intelligence, the Fourth Industrial Revolution (4IR), and Technical and Vocational Education and Training (TVET) reform have yet to be effectively integrated into sector-specific transition strategies or workforce adaptation mechanisms.

Skills systems are identified as a critical weak link. According to the report, TVET in Bangladesh lacks strong connections with industry and emerging sectors, leaving graduates ill-equipped for the jobs being created even as automation eliminates the ones being lost.

'TVET should be reformed to be industry-led and outcome-focused by collaborating with employers on curricula, expanding apprenticeships, and aligning training with new sectors and international labour markets,' the report recommended.

What Comes Next

Without urgent reform of skills infrastructure and social protection frameworks, the report suggests that the transition to automated, higher-productivity production could widen inequality rather than drive inclusive growth. The trajectory of Bangladesh's RMG sector over the next decade will serve as a bellwether for how other labour-surplus economies in South Asia navigate the automation wave.