Demand for labour rising in export-oriented sectors
Saturday, 21 November 2009
Sheikh Shahariar Zaman
Demand for labour is growing in export-oriented sectors as the production for export items has been rising in the country.
In October, production of export goods went up sharply as the country exported 21,269 twenty-feet equivalent containers of goods whereas 16,912 TEU containers carrying goods were exported in the corresponding period of the last year.
"This is a good sign as increase in production means more people are getting jobs," Ahsan Mansur, executive director of Policy Research Institute, told the FE.
He, however, said the government does not have any statistical data about unemployment but there are certain indicators which show that the demand for labour is increasing.
"Increase in production, wage pressure and static or increasing trend of house rent are good indicators to explain the labour market," Mr Mansur said.
Labourers in the country are now demanding wage hike, which shows that they have some bargaining chips in their hands, he said.
"The workers can bargain with their employers when they know there is a growing demand for labour or companies are making profit," he explained adding this is a good sign for any developing economy.
Many foreign RMG buyers have shifted to Bangladesh due to lower labour costs and other facilities extended to them.
The economist said the government is happy as long as production is growing as it does not have to think about the unemployment problem.
"Volume is important for the government but profit is important for entrepreneurs," he said.
He, however, said volume is increasing but the value of the export products is declining.
Companies in the country have lost some bargaining capacity in pricing due to worldwide recession but one should keep this in mind that production cost also declined due to lower costs of raw materials, Mr Mansur said.
He expressed the hope that in the second half of the current fiscal RMG sector would turn around as the global economy was picking up.
Commerce Minister M Faruk Khan also told the FE, "It is a good achievement but we are not complacent."
The government has taken a number of steps to increase production in the country including reduction in bank service charge and interest rate, automation in Chittagong port and customs authority, he said.
"It also announced a special incentive package for product and market diversification," he added.
About the negative growth in value for the first quarter of the current fiscal, he said Q1 is always a dull period.
"Shipment for winter season has already been delivered and now the exporters are procuring orders for spring and summer," the minister said.
The present time is some sort of dull period for exporters, he said.
Demand for labour is growing in export-oriented sectors as the production for export items has been rising in the country.
In October, production of export goods went up sharply as the country exported 21,269 twenty-feet equivalent containers of goods whereas 16,912 TEU containers carrying goods were exported in the corresponding period of the last year.
"This is a good sign as increase in production means more people are getting jobs," Ahsan Mansur, executive director of Policy Research Institute, told the FE.
He, however, said the government does not have any statistical data about unemployment but there are certain indicators which show that the demand for labour is increasing.
"Increase in production, wage pressure and static or increasing trend of house rent are good indicators to explain the labour market," Mr Mansur said.
Labourers in the country are now demanding wage hike, which shows that they have some bargaining chips in their hands, he said.
"The workers can bargain with their employers when they know there is a growing demand for labour or companies are making profit," he explained adding this is a good sign for any developing economy.
Many foreign RMG buyers have shifted to Bangladesh due to lower labour costs and other facilities extended to them.
The economist said the government is happy as long as production is growing as it does not have to think about the unemployment problem.
"Volume is important for the government but profit is important for entrepreneurs," he said.
He, however, said volume is increasing but the value of the export products is declining.
Companies in the country have lost some bargaining capacity in pricing due to worldwide recession but one should keep this in mind that production cost also declined due to lower costs of raw materials, Mr Mansur said.
He expressed the hope that in the second half of the current fiscal RMG sector would turn around as the global economy was picking up.
Commerce Minister M Faruk Khan also told the FE, "It is a good achievement but we are not complacent."
The government has taken a number of steps to increase production in the country including reduction in bank service charge and interest rate, automation in Chittagong port and customs authority, he said.
"It also announced a special incentive package for product and market diversification," he added.
About the negative growth in value for the first quarter of the current fiscal, he said Q1 is always a dull period.
"Shipment for winter season has already been delivered and now the exporters are procuring orders for spring and summer," the minister said.
The present time is some sort of dull period for exporters, he said.