CHAPTER 3 PRICES, WAGES AND EMPLOYMENT

Consumer Price Index and Inflation
[Prices, wages and employment are the three most important indicators for an economy. Price level is explained by the Consumer Price Index (CPI). According to CPI, the inflation rate in FY 2011-12 was 10.62 percent at the national level, which was 8.80 percent in FY 2010-11. During this period, the nonfood inflation rose to 11.15 percent. To contain inflation, the government has taken a range of measures which include ensuring smooth supply of food items. According to the latest survey conducted by BBS, the number of economically active population (above 15 years in the country is 5.67 crore, out of which, a labour force of 5.40 crore (male 3.78 crore and female 1.62 crore) is engaged in a number of professions. However, agriculture still remains the highest source of employment that absorbs 48.10 percent of the workforce. According to the Wages Rate Index, both nominal and real wage rates have been on the rise. A sizeable number of Bangladeshi labour force is employed abroad, of which a total of 691000 Bangladeshi workers went abroad for employment during FY 2011-12. The remittances of the expatriate workers stood at US$ 12,843.40 million in FY 2011-12. Of the total expatriate workers, more than 70 percent are employed in the Middle East. In order to ensure smooth inflow of remittances, the Government has taken a range of measures which include among others establishment of Probashi Kalyan Bank, introducing arrangements for remittance through mobile phone, providing CIP facilities to the large remitters].

Bangladesh Bureau of Statistics (BBS) computes National Consumer Price Index (CPI) using food and non-food commodities basket and services consumed by the consumers in their day-today life. The current CPI of Tables 3.1a and 3.1b have been constructed using both 1995-96 and 2005-06 as the base years. In order to construct the price index, the commodity and weight of the index basket from the Household Income and Expenditure Survey (HIES), both 1995-96 and 2005-06 have been used. All rural and urban price indices were compiled using the lists of consumer goods of rural and urban households based on the survey. And finally, the national price index is computed by taking into account the weighted average of consumption expenditures of the two areas. All indices are shown separately in food and non-food groups which are again divided into a number of sub groups. Consumer Price Index and inflation during FY 2002-03 to FY 2011-12 are shown in Tables 3.1a and 3.1b

27

66) 221.03 (4.28) 176.14 (4.43 (6.47) 227.61 (10.34 (7.93) 141.32) 2008-09 206.27 2008-09 132.30 113.48) 158.15) General (% change) Food (% change) Non-food (% change) 135.64 (7.33) 2005-06 164.53 (7.17) 170.66 2010-11 156.86 (10.63 106.74 158.84 (5.66) Source: Bangladesh Bureau of Statistics Graph 3.91) 147.22) 184.97 (4.40) 2006-07 176.26 (6.01 (4.25 General Food Non-food 109.18 149.32 179.40 130.1b:2001-02 Consumer Price Index and Inflation 2002-03 2003-04 2004-05 2005-06 General Food 0 2006-07 2007-08 2008-09 2009-10 20010-11 Non-food Table 3.06 (7.31) 240.79 (5.83) 146.83 (11.12) 165.01 (3.90 (5.55 (8.80) 267.91) 2009-10 221.34) 205.50 (6.59 170.93) 206.15) 2011-12 266.18 (8.46) 135.18) 186.67 (5.53) 196.90) 2007-08 193.1 Rate of Inflation (National) 12 Percentage 10 8 6 4 2 Table 3.48 138.76) 156.84 130.51 Source: Bangladesh Bureau of Statistics 28 .21 (7.17 140.39 11.54 (9.45) 2010-11 241.62) 295.1b: Consumer Price Index and Inflation (Base year 2005-06) 2006-07 2007-08 122.77 2011-12 170.79 (12.56 (6.02 (8.87 (11.23 (6.08 (7.13 (5.38) 137.36 2009-10 141.61 121.Table 3.1a: Consumer Price Index and Inflation (Base year 1995-96) 2002-03 2003-04 143.37) 2004-05 153.

From the above tables and graph.32) 257.57) 263.47 (11.25) 273.81 (9.00) 267.81 (10. the present government has taken a number of initiatives to lower the price level and to keep the prices of essential commodities such as rice.87 (12.28) 235.23) Feb’12 269.40) 226.74 (11.57) Mar’12 Apr’12 270.13 (13.72) 264.79 (12.38) 287.94) 203.84 (13.34 (10.88) Average 266.72) 263.08 (10.96) 217. Despite the price hike of essential consumer goods in the international market.23 (11.15) 260.16 (11.86 (10.20) 289.62) Jan’12 270.62 (12.09) Food 280.12 (7.29 (12.51 (13.87 (10.97) 273.46) 235. stable.91 (8.26) 210.61 (10.72) 218.79) 290.86 (11.58) 298.46 (9.74) Sep’11 264.89 (13.28 (9.29) 313.05) 258.49 (12. During 2011-12 non-food inflation was higher than food inflation.85 (12.70 (13.98) 269.77 (8.86 (6.76) 253.67) 205.78 (13.97) 298.96 percent on a point-to -point basis.68) 310.14) Aug’11 259.21 (12.61 (6.47) 224.35) 226.17) 268.11 (8.33 (10.70 (11.96) Food 285. The rate of inflation at the national level in July.66 (10.55 (10.73 (10.24 (7. Table 3.50 (11.57) 218.77) 264.62 percent which was 8.18) 238.75 (8.66 (11.72 (10.28 (9.59) 299.94 (11.34 (11.10 (6.72 (10.75 (11.25) 290.59) 225.39 (7.69) Oct’11 265.32 (10.58 (12.42) 273.98 (10.12) Nonfood 200.01) 242.29) 312.28 (10.41 (9.14 (6.59) 272.50 (13.84 (11.22 (9.77 (13.68 (9.34) 284.46) Dec’11 266.65) Food 298.56 percent in June.46) 247.2a: Monthly Rate of inflation (Point to point) during FY 2011-12 (Base Year 1995-96=100) 2011-12 July’11 General 254.11 (12. 2011 was 10.82 (12.13 (12.12) 310.73) 234.75 (12.56) 215.04 (8.08 (13.77) 257.21) 242.13 (12.01) Nov’11 266.17) 218.16 (10.12) 235.04) 207.38) 259.80 percent in the previous fiscal year.52 (9.80) 230.87 (11. the rate of inflation came down but in FY 2009-10 it started moving upward and continued in FY 2011-12.31 (13.24 (13.The rate of inflation (national) in FY 2011-12 stood at 10.66 (14.49 (11.82) 221.90) 231.59 (11.47) 269.42) 299.83 (10. edible oil.11) 311. The monthly rate of inflation during FY 2011-12 calculated on a point-to-point basis is presented in Tables 3.43 (8.24 (11.74 (7. pulse etc.05) 240.44) 271.62) 295.14 (11.89) 312.40) 291.02) 243.80 (14.01 (11.97) May’12 268.20) 211.10) 297.59 (14.80) 218.15) 293.85 (11.47) 313.82 (10.06 (14.40) Nonfood General 213.42 (11. During this period.47) 269. In FY 2008-09.37) 292.62) 310.30) 242.63) 296.17 (9. food inflation went down to 7.88) 290.31 (10.07 (11.15) 294.2a and 3.22) National Urban Rural General Source: Bangladesh Bureau of Statistics 29 .53) Nonfood 219.76 (10.07 (13.92) 234.53 (9.08) 236.55 (11.47) 227.17) 270.22 (13. the rate of inflation receded to 8.93) 297.29) 290. it is observed that there has been an increasing trend of inflation from FY 2002-03 to FY 2007-08.87 (12.82) June’12 270.73) 315.29 (13.91 (10.21) 291.63 (7.15 (8.60 (12.19) 258.35 (8.36 (8.43) 296.82 (9.28) 272.16) 264.08 percent in June from 13.56) 296.40 percent in June 2011 showing a sharp decrease.96) 264.06) 311.01) 293.93 (9.85) 292. After assumption of office.15 (12.87) 206.17 (12.82 (9.80) 262.70) 219.77) 312.77 (7.20) 304.67 (13.8 (11.94) 227.75) 220.2b.14 (11.89 (11.35 (11.89 (8.19 (8. 2012.60) 233.

62) 187.26 (2.48) 186.07) 184.70) 183.76 Nov’11 170.33 (10.31 (10.76 (6.10 percent.23) 149.54 (7.06 (12.08) 162.94) 183.70) 158.24 (11.61 (4.25 Mar’12 Apr’12 171.03) 161.08) 186.88) 147.59) (2.39) 151.85) Food National Nonfood General 179.34 (10.33 (3.77 (12.39) 173.96 (17.78) 154.79 (9.00) 174.79) 166.53 June’12 170.24 (7.15 (2.78 (5.50) 156.11 (9.18) (3.23 (11.12 (12.61 (10.85 (7.04 (10.36 (9.80) 157.69) 183.27 (7. It has been observed from the table that the nominal wage rate index kept on rising and in FY 2011-12 the index rose by 11.98) 179.53 (8. 2.27) 147.84 (9.16) 177.88) 152.24) 183.97 (6.35 (6.34 (12. The Wage Rate Index from FY 2001-02 through FY 2011-12 is presented in Table 3.08 (3.09) (11.98 (7.31) 173.83 (9.24) 181.83) 183.40 (9.62 Source: Bangladesh Bureau of Statistics Wages Index Bangladesh Bureau of Statistics has constructed a Wage Rate Index using 1969-70 as the base year.63 (11.61 Oct’11 171.13) 162.38) 184.26) 151.82 (8.42) 172.62) 182.47) 165.21) 164.56) 158.60 (9.16) 152.57 Feb’12 171.34) 190.74 (2.09 (11.89 (8.10 170.65 (7.83) Food Urban Nonfood General 180.63 (9.59) 183.38 (14.31) 143.51) 185.28 (9.26) 165.76 (4.65 (12.35) 187.19 (5.66) (5.71 (8.90 Average 170.74) 144.55) 179.23) 161.18) 166.2b: Monthly Rate of inflation (Point to point) during FY 2011-12 (Base Year 2005-06=100) 2011-12 July’11 General 164.54 (9.61) Nonfood 148.13) 149.00 (13.73) (2.96 (12.77) 173.Table 3.11 (8.00) 150.35 (10.87 (9.97 (10.76) 183.88 percent compared to that of the previous fiscal year. It is to be noted that. in FY 2011-12.09) (3.77 (10.44 (10.53) 184.80) (6.72) 152.56) 159. 30 .96) 154.40 (12.26) 187.40 (8.47) 189.69) 183.32 May’12 169.35 (11.32 (11.32 (6.09) 152.92) 176.26) 171.58) 186.85 (11.06) (9.92 (10.49) 174.24 (10.12 (4.22 (8.12) 156.52) 173.39 Sep’11 170.27 (10. the wage rate indices of construction sector is much higher and have been the highest during the recent times.40 (6.59) 140.23 (7.24) 162.88 (5.40 (8.65) 155.60 (11.66 (10.28 (7.86 and 6.21) 165.67) 174.61) (2.80 (12.62 (12.51 (10.10) 174.27 (8.26 (8. fisheries and manufacturing sectors increased by 15.16 (6. the wage rate indices of construction sector increased by 32.04) 183.79) 164.38 (7.76 (13.05 (516) 151.19 (8.12 (8.03 (11.94 (10.72) 144.74) 165.01) 178.65) 143.37 Dec’11 170.73) 181.68 (8.42 (8.72 (6.62 (6.87) 186.79) 146.53) (7.64 (12.69 (10.19) 164.65) 179.54) 145.10 (12.79 (6.64) 157.99) 188.04) 151.78 Jan’12 172.68) 164.91) 167. The wage rate index of agriculture.23) 180.24) 152.96) 179.54 percent respectively.95) (15.23 (10.16) 173.3.42) 178.03) (14.93 (9.13) 152.91) Food Rural (15.20) 165.75) 160.86) 158.83 (6.61) 184.86) 148.87 Aug’11 168.01 (10.50 (7.14 (4.17 percent.33 (5.16 (12.66) 188. Compared to these sectors.78) 183.27 (14.

17) Fisheries 2411 (5.08) 2351 (6.65) 2443 (8.28) 2957 (6.55) 149 (2.19) 2563 (6.92) 4636 (7. Nominal Wage Rate Index Agriculture 2262 (5.3: Rate of Increase in Wages (Base year 1969-70=100) Fiscal Year General 2001-02 2637 (5.09) 2524 (7.69) 3524 (11.Table 3.35) 3765 (7.30) 2775 (8.45) 4821 (14) 5043 (6.50) 2006-07 3779 (7.33) 2889 (4.56) 2885 (5.67) 154 (2.00) 150 (0.85) 2008-09 5026 (18.11) 4236 (15.17) 2129 (2.65) 5326 (10.64) 4293 (6.75) 3135 (8.00) 141 (8.92) CPI for industrial labour (national) Real Wage Rate Index (General) 31 .36) 2740 (8.69) 5187 (2.96) 2003-04 3111 (6.10) ----------2024 (1.52) 3549 (13.25) 2068 (2.55) 6583 ---(32.76) 2007-08 4227 (11.66) 4274 (21.35) 3669 (10.47) 4756 ---(10.27) 2011-12 6469 (11.31) 2004-05 3293 (5.28) 4985 (16.55) 3133 (5.95) 6778 (3.69) 2758 (3.74) 2624 (7.95) 3332 (6. Figures for FY 2006-07 to FY 2008-09 have been calculated by using the trend analysis of the ratio of CPI and Industrial CPI of FY 2005-06 and before.95) 2002-03 2926 (10.67) 174 (12.46) 146 (3.88) Source: BBS Note: BBS has not published the consumer price index of industrial labour after FY 2005-06.87) 6134 (15.96) 7221 (6.20) 4311 (21.67) 2010-11 5782 (6.00) 2582 (5.54) Construction 2444 (3.31) 2926 (7.30) 130 (4.61) 3156 (7.99) 5197 (12.17) 3501 (15.95) 2216 (4.90) 2009-10 5562 (10.85) 2005-06 3507 (6.69) 2719 (5.55) 4015 (6.91) 6620 (13.05) 149 (0.31) 4983 ---(7.10) 6128 (17.86) Manufacturing 3035 (7.36) 2669 (1.

the total labour force of over 15 years of age was 4.10 47. which was 18.21 0.69 48. 2005-06 & 2010 BBS.32 5.00 100. as many as 5.23 0. Out of this.85 50.00 100.40 crore people (male 3.45 15. The survey indicated that 21.29 0.06 9. Between the two survey periods.49 6. gas & water 2.64 15. The latest survey also indicated that 14.73 percent respectively according to the previous surveys.33 percent) still being in agriculture.5 percent in agriculture and 18.79 Construction 17.44 7.21 0.46 percent. According to the Labour Force Survey.26 0. According to LFS 2010.74 crore (male 3.60 percent of the labour force was engaged as full time employees implying a decrease by 2. It may be noted that during the two survey periods.77 8.34 16.49 5. hotel & restaurant 6.39 3.00 100.67 crore.7 percent unpaid family workers. maintenance & communication 0. According to the latest survey of BBS titled ‘Labour Force Survey 2010’.4 percent ( 25.41 6.62 crore) are engaged in a number of professions. 2005-06 & 2010.37 Transport.57 1.13 crore) with agriculture remained the highest (48.87 2.00 100.14 percent and 21.48 1.23 0.51 0.8 percent of labour force was daily labourers and 19. 1995-96.24 15. Bangladesh Bureau of Statistics conducts the Labour Force Survey (LFS). 32 .42 percent. the number of economically active population (above 15 years) is 5. According to Labour Force Survey 2002-03. the number of agricultural workers decreased by nearly 1 percent. 2005-06 and 2010 is shown in Table 3. it is observed that 44.32 6.4: Share of Employed Labour Force (Above 15 years) by Sector Sector 1995-96 1999-00 2002-03 2005-06 2010 48. the highest (47.78 crore and female 1.34 Manufacturing 0.64 6. 1999-00.47 Trade. The share of employed labour force (above 15 years) by different sectors of the economy according to the Labour Force Surveys 1995-96.03 0.79 - 13. the number of self-employed labour force increased by 2.71 10.16 4.9 others) of labour force is engaged in self-employment while it was 41.24 100.77 51.26 4. 2002-03.08 - 5.18 Mining & quarrying 10.00 Source: Labour Force Survey (LFS). business & services Commodities & personal services Public administration and defence Total Note: 13.97 12. Table 3.82 3.10 percent) source of employment.49 9. forestry and fishery 0.68 1.4. 2005-06. but in the previous surveys the criterion for counting labour force was population above 10 years.33 Agriculture. 1999-00. population above 15 years of age has been counted as labour force.84 Finance. 2002-03.61 crore and female 1.98 percent in FY 2005-06.18 Power.Labour Force and Employment In order to assess the overall situation of employment.

Among these TTCs. 6 centres have been set up exclusively for women. Besides. The Ministry of Labour and Employment has undertaken a number of steps to reduce hazardous child labour from the industries. In this centre there 6 trade and 2 Shift for training. Important steps taken by the government are stated below: a) Skill Development Training Socio-economic development of Bangladesh largely depends on human resources development which can be accomplished by imparting training to our huge unemployed labour force. In the 3rd phase of the project 50000 child labour are trained in 24 month and develop their skills within 6 months. Rajshahi. b) Discouraging Hazardous Child Labour with Proper Rehabilitation Child labour is a very sensitive issue across the globe. They are given respective trade related equipment with the financial assistance of Netherland government (Tk 7139.77 crore. the Bureau of Manpower. labour welfare. These TTCs have been providing training on 17 different trades. Employment and Training has established 26 Technical Training Centres (TTC) with an outlay of Tk 325. Maintaining industrial relations. The Labour and Employment Ministry with the help of labour wing established child labour unit. The Ministry of Labour and Employment took a project titled “Urban informal Economy (UIE) programme”. This ministry has implemented two projects until June. Khulna and Chittagong where skill development training is provided. industrial dispute settlement. 2009 to bring 40000 children under the coverage of non-formal education besides skill development training. Every year they give training to 4320 woman that is why there are employment of woman in our 33 . skill development training and workers’ education are also important to scale up the productivity of the labour force. This child labour unit plays as a catalyst regarding child labour reducing related issues and all there works are done successfully. the Government has established four industry related training centres in Dhaka. c) Women Development and Training To encourage our women society in developmental work there are 6 women handicraft training centre in 6 division only for women.70 lac) to remove worst type of child labour from Bangladesh urban informal economy. Meanwhile. The employers and workers of factories and other outfits play a vital role in this regard. Bangladesh Institute of Marine Technology and Technical Trainning Centres have been providing scholarships to the trainees of a total of 38 trainning centres. Around 2000 trainees are trained up each year to make them skilled and comptent for entering into the overseas job markets. Realising this.Steps taken to Improve Employment Situation Generation of employment for the labour force is essential for raising productivity within the economy. This training made them self-employed.

About 6.2. the Government has declared minimum wage award to 32 industries out of 42. 2) The retirement age of labourers has been raised from 57 up to 60 by amending relevant labour law. security in working place and comfortable working environment are strived to attain. 34 . 6) A project has been taken up to construct 10-storeyed hostels at Chasara. The manpower export has been increasing in the recent years. d) Reforms Undertaken to Ensure Labour Welfare The Government is aware of the need for protecting the interest of the labourers as well as the improvement of their living standard. Overseas Employment and Remittances Remittance sent by the Bangladeshi expatriates make significant contribution towards accelerating economic development of the country. 4) A set of draft rules has been prepared under the Labour Welfare Fund of the private owners of the road transportation system. 3) Bangladesh Labour Act.24 percent higher than the remittance earned to the tune of US$ 11. A sizeable portion of Bangladeshi labour force is employed in the Middle-East and many other countries of the world.40 percent higher than the number stood at in the previous year. 5) The Government has taken steps to formulate National Labour Policy.5 and Graph 3.650 million in FY 201011. Beside that inequality laws of woman. 2006 has been revised to update its contents.843 million in FY 2011-12 which was 10. The year-wise statistics of inward remittances sent by Bangladeshi expatriates is shown in Table 3. The Ministry of Labour and Employment has taken the following steps to ensure their greater welfare: 1) In order to ensure better living conditions of the labour force. Tejgaon and Tongi to provide accommodations to the women garment workers. which was 57. such as addressing unemployment problems.country and foreign country.91 lakh workers went abroad in quest of jobs in FY 2011-12. The numerical strength of the labourers and the attendant problems are growing by tandem with the increasing momentum of economic activities. Bangladesh earned remittances of US$ 12. With the help of Sheikh Fazilatunnesa Mujib Female handicraft training centre every year 10000 young woman learn practical knowledge and take training like housekeeping trade and setup there career in abroad. poverty reduction and increasing foreign exchange reserve.

58 19872. % change over the previous year Graph 3. 439 2009-10.11 percent of GDP and 35 .99 36.47 24.50 2007-08 981 7914. 981 2006-07.16 22. 291 2004-05. Over time remittances sent by Bangladeshi expatriates substantially increased and in FY 2011-12 it stands at 11.39 23646.97 22.2 shows that in the recent past. The remittance sent by Bangladeshi expatriates was 5.97 10.5: Number of Expatriate employees and amount of remittance No of employment abroad (000) Amount of remittance In million US$ Percentage change (%) Tk.96 31. Employment & Training and Bangladesh Bank. there is an upward trend in both the number of manpower export and the amount of inward remittances.40 13.81 14. 650 2007-08.42 2003-04 277 3371.5 and Graph 3. 250 2003-04. In Crore 17719. The ratios of remittances to GDP and export earning show a mixed trend. 691 2010-11.29 14.87 76109. 277 Million US Dollar No of employmee (000) Amount of Remittances Table 3.89 101882.13 2005-06 291 4801.2 Manpower Export and Remittance Inflow Employee number (000) 2011-12.60 82992.78 FY Percentage change (%) 23.60 41298. 427 2008-09.12 2004-05 250 3848.03 2011-12 691 12843.90 percent and 46.78 2006-07 564 5978.40 2010-11 439 11650.31 12.Table 3.42 2009-10 427 10987.15 18.76 percent of the country’s GDP and total export earnings respectively during FY 2002-03.47 22. 251 2005-06.97 32274.15 9. 564 2002-03.76 2002-03 251 3061.78 32.24 66674.49 27.04 22.40 10.39 2008-09 650 9689.88 24.32 6.50 54293.24 Source: Bureau of Manpower.

97 6. the shares of skilled and semiskilled workers are at the satisfactory level.3 below. Table 3. Table 3.7. The number of expatriates classified by skill is shown in Table 3.7: Number of Expatriates Classified by Skill Calendar Year 2001 2002 2003 2004 2005 2006 Professional 6940 14450 15862 19107 1945 925 Skilled 42742 56265 74530 81887 116393 115468 Semi-skilled 30702 36025 29236 24566 24546 33965 Less-skilled 109581 118516 136562 147398 112556 231158 Total 188965 225256 254190 272958 255440 381516 36 .25 63. BBS and EPB Graph 3. it is observed that about half of overseas workers who went abroad are less-skilled.09 56.74 10.52.89 8.43 11.35 44.48 50.82 52.02 10.84 11.77 10. From the table.92 Source: Bangladesh Bank.76 44.46 45. However.3: Remittances as percent of GDP and Export Earnings percent as percent of GDP as percent of Export Earnings Expatriates Classified by Skill Analysing the statistics of the Bureau of Manpower Employment and Training (BMET).11 46.90 5.09 62.6 and Graph 3.6: Remittance as Percent of GDP and Export Earnings FY as percent of GDP as percent of Export 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 5. it is observed that the share of professional workers has decreased significantly.92 percent of total export earnings.37 6. Remittances as percent of GDP and as percent of total export earnings are shown in Table 3.62 49.

Qatar.4. Likewise.4. Kuwait. UK.1 and 3. the share of less-skilled workers reduced to 55 percent in 2011 from 58 percent in 2001.1: Overseas Employment by Chart 3. 37 . In 2001 the share of professional expatriates was 4 percent of total manpower export. There is a significant change in the structure of expatriates classified by skill during the last few years.8 and Graphs 3. which in the subsequent years gradually came down. 58% Malaysia and Singapore.2: Overseas Employment by Country wise Manpower Export and Remittances It Lesshas been observed that most of the expatriates are working in Saudi Arabia.16% Brunei. Italy and other countries.5. it is observed that more than 70 percent of total expatriates went to different countries of the Middle East. Table 3. Employment and Training. Besides. The number of expatriates Bangladeshis by country since 2002 is shown in Table 3.8 Number of Expatriate Bangladeshi Workers by Country Calendar Year Saudi Arabia Kuwait UAE Bahrain Oman Malaysia Singapore Other 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 163254 162131 139031 80425 109513 204112 132124 14666 7069 15039 10817 15767 26722 41108 47029 35775 4212 319 10 48 29 - 25438 37346 47012 61978 130204 226392 419355 258348 203308 282739 168685 5370 7482 9194 10716 16355 16433 13182 28426 21824 13996 10372 3927 4029 4435 4827 8082 17478 52896 41704 42641 135265 95887 85 28 224 2911 20469 273201 131762 12402 919 742 400 6870 5304 6948 9651 20139 38324 56851 39581 39053 48667 28523 4545 11148 25006 35165 40979 68188 68836 80141 75840 19038 60153 Source: Bureau of Manpower.5. UAE. skilledBangladeshi expatriates have been working in Bahrain.2: Overseas Employment by Professions in 2011 Profession in 2011 Professional 0% Skilled 40% Less-skilled 55% Graph 3.Calendar Year 2007 2008 2009 2010 2011 Professional 676 1864 1426 387 1192 Skilled 165338 281450 134265 90621 229149 Semi-skilled 183673 132825 74604 12469 28729 Less-skilled 482922 458916 255070 287225 308992 Total 832609 875055 475278 390702 568062 Source: Bureau of Manpower.1: Overseas Employment by Professions in 2001 Profession in 2001 Professio nal 4% Skilled 22% Graph 3.2. Semi-skilled skilled Semi5% Oman. Ireland. South Korea. Jordan. Professional Skilled Semi-skilled Less-skilled Professional Skilled Semi-skilled Less-skilled Analysing the data of manpower export since 2001 to 2011. Lebanon.4. Chart 3.4. Employment and Training. Mauritius.

6 113.31 220.54 375.84 1135.55 113.6 238.26 31.7 847.12 63.49 327.2 157.2: Overseas Employment by in 2011 Country in 2011 Saudi Arabia Kuw ait 3% Malaysia 0% Others 0% 13% Singapore 9% UAE Oman 49% 24% Bahrain 2% During FY 2011-12.05 467.Graph 3.27 114.45 Qatar 63. followed by the United Kingdom (7.51 1498.24 130.13 3061.85 41.78 USA 225.36 360.47 220.79 343.53 131.69 percent).18 67.13 193.93 Singapore Bahrain Malaysia 7.9.6 2404.26 10987.91 65.78 9.4 11650.61 1147.33 79.05 54.7 2324. 38 .31 1386.06 118.5.03 1510.89 1848.39 285.18 1075.45 Kuwait 247.59 361.32 444.1 2501.37 47.72 percent).47 7914.3 400.84 14.95 1254.7 103.27 percent) and Malaysia (6.75 338.17 289.24 561.97 3848.96 138.62 356.37 UAE 144.4 37. Table 3.6 46.6 987. the United States of America secured the first position (11.47 44.28 233.67 percent).88 5978.8 494.2: Overseas Employment by Country Graph 3.31 760.66 103.4 Source: Bangladesh Bank.1: Overseas Employment by Country 2001 2001 Malaysia 3% Bahrain 2% UAE 9% Kuw ait 3% Saudi Arabia 72% Oman 2% Singapore 5% Others 4% Chart 3.22 1451.11 165.9 896.81 557.69 percent) came from Saudi Arabia keeping the trend as usual followed by the United Arab Emirates (18.46 1696.72 61.3 311.08 1575.58 798.47 30.43 711.5.61 123.31 2002.24 458. Kuwait (9.08 334.46 442.06 32.1: Overseas Employment by Country in in Chart 3.22 297.14 185.64 290.25 196.689.9: Country wise Remittances (In million US$) FY 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 KSA 919.65 827.97 3371.46 202.71 886.49 Others 59.11 67.18 147.77 555.13 UK 55.81 339. the highest amount of remittance (28.92 1890.69 930.29 99. Among the Western and European countries.41 175.3 12843.69 64.82 11.75 1019.29 501.11 319.16 884.23 2859.96 1734.61 Total 1882.09 3427.32 165.8 1190.2 587.33 1380.44 282.84 80.29 4801.93 298. Amount of country wise remittance sent by Bangladeshi expatriates from FY2000-01 to FY 2011-12 are shown in Table 3.7 863.13 789.64 136.25 Oman 83.4 335.09 703.06 349.51 889.60 percent).4 373.73 970.5.05 3290 3684.06 25.44 804.45 170.39 680.24 406.84 92.64 233.14 1754.44 90.51 20.5.

the Government has been trying to explore new markets in other regions of the world. In the context of recent political turmoil in this region. Besides. Besides.69 percent in FY 2011-12. Bangladesh is also trying to expand its labour market to Europe and Africa. New Zealand. about 45. Nigeria. Rumania. Congo. Sweden. Angola.The comparative position of country-wise remittances inflow between financial years FY 200102 and FY 2011-12 has been shown in graphs 3. Sudan. Angola. Some of the steps that have already been taken by the Government to enhance the flow of remittance and to explore new labour markets are given below: (a) Exploration of new labour markets: Five teams with high level government delegates have been formed to explore new labour markets. Australia. the share of remittance from the UAE increased to 18. Remittance inflows from the Malaysia.6(a) 3. Liberia. the government has taken necessary actions to encourage remittance inflow through legal channel and to ensure quick disbursement of remittances to the recipients. South Africa. during the same period.90 percent of the total remittances was received from Saudi Arabia which declined to 28. Algeria. Algeria. UK and Singapore grew significantly over the same period. South Africa. Tanzania. It is evident from Graph 3. In FY 2001-02.6 that despite significant decline in the share of remittances. Botswana and Sierra Leon have been identified as new markets for our workers. Estonia. On the other hand. 39 . Congo and other countries. Azerbaijan.6(b). Papua New Guinea.72 percent in FY 2011-12 from 9. Workers have already started migrating to Sweden. Iraq.3 percent in FY 2001-02. the highest amount of remittance is still coming from Saudi Arabia. Different countries such as Iraq. Canada. Greece. Steps taken to boost up foreign employment and remittances: The middle-east is the main labour market for Bangladesh. Russia.

7. By this time. Trust Bank Ltd. a database of migrant workers with digitised fingerprints has been established. 2011. Employment and Training : Welfare Branch is a service oriented branch established at the Bureau of Manpower. and provides financial assistance in carrying and burial of dead bodies.18 crore has been distributed to the heirs of 112 deceased persons in 2011. (d) Modernisation of Emigration Process: To reduce the influence of the recruiting agencies and brokers. The hassles of the expatriate workers have been reduced to a great extent by providing the opportunity of automatic print of embarkation card since the information is kept in the smart card. Outgoing clearance is being provided through smart card by using database network. (e) The government has taken several important steps for quick transmission of remittances through banking channel. Approval has been accorded to 4 banks (Dhaka Bank Ltd. Citibank) to distribute remittance through the outlets of mobile phone operators recently and to enhance the network of remittance distribution. As many as 16 local banks have been allowed to establish 44 exchange houses/branch offices/representative offices abroad for collecting remittances and their onward transmission to the country. provides briefing to the migrant workers. The policy and the approval process of establishment of exchange houses/branch offices abroad by local banks have been simplified.1.. Employment and Training. a specialised bank. collects salary dues from the employers for the family of the deceased worker. The bank has started its operation since 20th April. Mercantile Bank Ltd.. These include:  Approval mechanism of drawing arrangements of Bangladeshi Banks with the foreign exchange houses has been simplified to expedite remittance flow and distribution.78 crore has been distributed to the heirs of 526 deceased workers in 2010 while a total of Tk. A total of Tk. ensures safe migration with the help of expatriate welfare desk at the airport and ensures safe arrival in the country. This branch assists in bringing back dead bodies of Bangladeshi migrant workers. 300 foreign exchange houses have made 850 drawing arrangements with 42 Bangladeshi Banks. 40    . 16 micro-finance institutions have been approved to operate distribution of remittances to promote remittance flow and distribution network. brings back the stranded workers to the country. (c) Creation of Welfare Branch in the Bureau of Manpower. financed by Wage Earners’ Welfare Fund. has been established to assist the workers who intend to go abroad and to rehabilitate workers who return to the country.(b) Establishment of Probashi Kalyan Bank: Probashi Kalyan Bank. delivers compensation to the families of the deceased workers whose families fail to get any compensation from abroad.

   Wage Earners’ Development Bond. Delivery outlets have been developed under Remittance and Payment Partnership Project (RPP) to expedite remittance flow in a faster and less expensive way. 41 . Premium Bond and Dollar Bond have been floated to encourage the expatriates to invest CIP facilities and special citizen facilities for Bangladeshi expatriates have been extended to encourage the workers to remit their earnings through the banking channel.