An Analysis of Division-wise Employment Patterns in : Decent Work Perspective An Analysis of Division-wise Employment Patterns in Bangladesh: Decent Work Perspective

Md. Mamin Ullah*

Department of Management Studies, University of , Barisal, Bangladesh

ABSTRACT

The growing global concern for labor rights and human dignity has led the development of notion of decent work. However, the countries’ readiness to adopt this decent work agenda into national policies is in debates and discussions among the labor economists and researchers. The objective of this paper is to analyze division-wise employment patterns in Bangladesh from decent work perspective. This policy based study has incorporated a comparative analysis of different dimensions of employment of different divisions in Bangladesh based on available data. Related research articles, journals, monographs, books, strategic papers, and publications of national and international labor organizations were critically reviewed. The study has found that despite a significant progress in human development and economic growth, still a significant division-wise variation is found in terms of labor force participation, NEET, informal employment, status in employment, and labor migration in Bangladesh. An integrated national policy dealing with the customized labor strategies for different divisions is supposed to be effective for attaining decent work objectives in Bangladesh. Policy options and research agenda are outlined. Keywords: Decent work, employment, division-wise employment, employment in Bangladesh

1. INTRODUCTION As a result, the role of ILO has been evaluated in building a future that promotes human development leading to 1.1 Background sustainability. Globalization has been appreciated for creating economic Bangladesh has made significant progress in recent years opportunities, but it is also being criticized for contributing in terms of economic growth despite the worldwide to “social inequalities and personal insecurities” [1]. financial crisis. Moreover, her achievement in attaining Economic transformations due to globalization have led some targets of Millennium Development Goals (MDGs) to the flexible labor relations and turmoil labor market is notable. This country is blessed with 106.1 million structures across countries. Employment is now featured working age people [6]. Nonetheless, the employment with inadequate income, gender inequality, excessive work rate has not increased in comparison with her economic load, job insecurity, and poor working conditions [2]. The achievements. There are, for instance, 44.0 million most productive workers are also being affected due to this people who are outside the labor force. In addition, the situation [3]. The existence of precarious employment has regional employment characteristics vary at a large extent added an additional feature to this volatile employment in this country. Different demographic characteristics relationship. The world thus has seen a new redistribution and traditional social structures across the regions have of power with different levels and forms of exploitation become important inputs of labor market in Bangladesh. due to the changes in relationships between work and It is therefore a crying need to justify the employment capital [4]. Considering this context of degradation of characteristics in Bangladesh compared to the desired labor market, International Labor Organization (ILO) objectives of ILO’s decent work agenda. This paper introduced decent work paradigm with an intention to critically analyzes the employment characteristics of establish social justice in the world. Decent work is a different divisions in Bangladesh from decent work people-centered approach aimed at promoting labor perspective along with an attempt to provide policy dignity and work-life balance [5]. Decent work focuses options to promote decent work. on job creation as a key to economic development along with an emphasis on both quantity and quality of work. This paper is organized into five logical sections. Section 1 provides the research background and justification along However, different institutional settings and countries’ with a short note on adopted methodology. Section 2 demographic profiles challenge this noble vision of ILO. presents a review of contemporary studies on decent work.

*Corresponding author’s email: [email protected]

DUET Journal 83 Volume 4, Issue 1, December 2018 An Analysis of Division-wise Employment Patterns in Bangladesh: Decent Work Perspective

Section 3 summarizes the concept and objectives of decent 1.3 Methodology work agenda. Section 4 is the substantive and longest part of the paper dealing with a division-wise analysis of The methodology of this policy research consists of a employment characteristics in Bangladesh from decent mixed approach of both exploratory and descriptive work perspective. Finally, section 5 concludes the paper research. This study is exploratory as it aims to explore along with a set of policy options and research agenda. the comparative employment characteristics of different divisions in Bangladesh. Again, the study is descriptive 1.2 Rationale and Purpose because it describes the different dimensions of employment from decent work objectives. The data What is the overall labor force structure in Bangladesh? were collected from secondary sources. The relevant What is the level of decent work status in Bangladesh? working papers, journals, e-books, articles, strategic Why decent work agenda is important for an emerging papers, monographs, and the publications of national economy like Bangladesh? What is the degree of and international labor organizations were collected country’s readiness to adopt decent work agenda in and studied in pursuit of the objectives of the study. A national labor policies? What are the key characteristics of critical review is important when the field of research is employment patterns in Bangladesh? Are the employment comparatively new and an attempt is made to integrate the patterns in all divisions are more or less common? Is there different dimensions of the topic [7]. The most important any variation between divisions in this case? Is there any sources for analyzing employment characteristics were the gender inequality in employment in Bangladesh? What is Quarterly Labor Force Survey (2015-2016) of Bangladesh the current status of Bangladesh in comparison with other Bureau of Statistics and ILOSTAT, the official statistical countries regarding employment and its dimensions? database of ILO. In addition, the websites and databases of What are the best possible options to foster employment reputed organizations like UNDP, World Bank, European in Bangladesh as per decent work agenda? What are the Union, and OPEC were given importance during data research gap areas in employment in Bangladesh? The collection. For the ease of discussion and comparison, data answers of these questions lay down the foundation of the of some selected countries of different economic regions rationale of this study. of the world were presented. Uniformity of presentation was maintained throughout the paper for the consistent Bangladesh is the second largest growing economy in the analysis and easy readability. Since data availability for world with an average GDP growth rate of 6.5%. There are different economic regions vary, latest statistics were more than 106.1 million working age people in Bangladesh taken into account along with the indication of years. [6]. Accordingly, the prospect for utilizing these vast human resources in attaining economic development is relatively higher in comparison with other developing 2. LITERATURE REVIEW economies. A well planned manpower policy based on the decent work agenda is a prerequisite to establish social Since the inception of decent work agenda in 1999, a justice in this country in addition to economic growth. substantive number of studies have been conducted Surprisingly, a very few studies focused on this important (e.g., [8]; [9]; [10]) and still now the scope of research aspect of the economy. Most of the works remain at the is being augmented. However, the decent work agenda is round-table discussions. The analysis of employment not a finished project [11]. The research works on decent patterns from decent work perspective is not focused work and the concept itself have been criticized at a till now. The researchers, academics, think tanks, and large extent [12]. The ILO has been working to establish policy makers are in need of having a comparative study social justice in this world that will promote labor dignity focusing on this research gap. This study aims at exploring and quality of life. In this respect, it introduced the term the division-wise employment patterns in Bangladesh ‘decent work’ in 1999 [13]. However, the concept of from decent work perspective. More specifically, the dignity is contradictory to decency. Dignity is linked to objectives of this policy study are: (1) to analyze the employment patterns of different divisions in Bangladesh; a human rights agenda. Decency, on the other hand, is linked to the principles of work [14]. Rodgers [15] stated (2) to compare and contrast the employment facts based that the word ‘decent’ in the concept of ‘decent work’ on decent work agenda; (3) to review the contemporary means the work should satisfy social norms in terms of studies on decent work with special focus on employment income, security, conditions, rights, and dignity. Despite dimension; (4) to discuss the concept and objectives these contradictions and debates among the labor of decent work in a nutshell; (5) to provide the policy specialists and researchers, the introduction of decent options to foster employment opportunities in alignment work agenda has opened the door for promoting new with decent work objectives; and (6) to suggest possible jobs and improving working conditions pertaining to research areas on decent work in Bangladesh. fundamental rights of work [16].

DUET Journal 84 Volume 4, Issue 1, December 2018 An Analysis of Division-wise Employment Patterns in Bangladesh: Decent Work Perspective

Considering the importance of decent work paradigm in For work to be decent, at least six basic conditions must promoting human rights of workers, the United Nations be satisfied as per the above definition. There mustbe has incorporated this into SDGs agenda. The objectives adequate equal employment opportunities for both male of decent work are inevitably reflected in goal 8 of SDGs and female workers. It encompasses all forms of economic which calls for full and productive employment and activity of both formal and informal sectors. Earlier decent work for all [17]. Thus, emphasize was given on self-employment and domestic work were not formally three critical issues: product work, full employment, and recognized in an economy. Decent work has incorporated employment for all. The latter two issues are the prime all forms of works. Another important characteristic concerns of this paper. of decent work paradigm is that work should be freely chosen and there should be no forced labor. In addition, We observe substantive research evidences on decent certain types of work such as bonded labor, slave labor, work at both national and international levels. Hepple and child labor at some extent are prohibited. Employees [18] examined the term ‘equality’ from decent work are free to join workers’ associations. The work should perspective and urged that the notion of equality should be productive i.e., the employment should yield adequate be reconstructed by involving the disadvantaged groups in earnings to support the standard livelihoods. This is critical employment relationships. Anker et al. [19] developed the for attaining sustainable development. Workers have the statistical tools for measuring decent work. rights to get equitable treatments and opportunities in The role of decent work was justified in establishing work. There should have a balance between work and social justice across the world [20]. Moreover, decent family life. Decent work also emphasizes on job security work agenda was evaluated in eradicating poverty by and better occupational health. Finally, employees have Bell and Newitt [21]. The concept of decent work was the rights to get respect for their works. In fact, the decent examined from different perspective such as, psychology work agenda brings together the dreams of people across [22], cultural and political economy [23], and philosophy. the world under one umbrella. More importantly, Haddad and Hellyer [24] investigated A critical evaluation of decent work agenda indicates that the impact of decent work agenda on social protection. there are four pillars or strategic objectives of decent work: Decent work also has attracted interests of researchers in fostering employment, rights at work, social security and Bangladesh. Muqtada [25] examined the macroeconomic social dialogue. These pillars of decent work are closely conditions and labor policy issues in Bangladesh and interrelated. Social dialogue, for instance, extends the recommended some policy options to promote decent scope and effectiveness of labor rights. Rights at work, work. Siddiqui [26] investigated the trends and effects on the other hand, provides framework for dialogue and of international migration from Bangladesh from decent influences its contents. Social security dimension reduces work perspective. Rahim [27] conducted a study on decent bargaining inequalities and enhances the effectiveness of work in Bangladesh and found that appropriate legislative social dialogue. It also facilitates expansion of social and frameworks should be developed in the light of decent economic rights. All these three dimensions foster quality work agenda. Repon [28] examined decent work status employment together. among the working women in Bangladesh. Nonetheless, the number of studies on decent work is very negligible in comparison with the scope and importance. Moreover, the 4. DISCUSSION studies focused on isolated issues with no common focus on specific dimension of decent work. This study is supposed Bangladesh is a small country in South Asia with the to contribute to existing field of research with a special focus highest population density in the world. According to the on employment dimension of decent work in Bangladesh. last official census in 2011, total population is more than 152.5 million people which rank the country 8th in the world. Despite this huge population, Bangladesh has made 3. DECENT WORK: DEFINITION AND OBJECTIVES significant progress in recent years in case of economic growth and human development. This is the second fastest The notion of decent work was first introduced in 1999 growing economy in the world. Thus, population was by the ILO Director-General in his 1999 Report to the turned into wealth from curse at some extent. International Labour Conference. Later ILO officially defined the term ‘decent work’ as follows: Population Characteristics There are more than 106.1 million working age people The primary goal of the ILO today is to promote in Bangladesh [6]. This huge working age population is opportunities for women and men to obtain decent and seen as a window for bringing light into economic growth productive work, in conditions of freedom, equity, leading to sustainable development. Surprisingly, near security and human dignity [13]. about 44.0 million people are outside the labor force. See

DUET Journal 85 Volume 4, Issue 1, December 2018 An Analysis of Division-wise Employment Patterns in Bangladesh: Decent Work Perspective

Figure 1. Moreover, 7.1 million people are underemployed. distribution in Bangladesh in rural and urban areas. Of the Only 59.5 million people are in active employment. 158.5 million people, 114.0 million people reside in rural areas. Special policies are required for making this people The population characteristics of a country have important skilled for labor market. implications for employment and labor market. There is a relationship between population aging and labor supply. As stated in Table 2, Dhaka has the largest share of total Moreover, the demographic profiles of a country largely employed population in Bangladesh. It has more than determine the labor market structure in a economy [29]. 19.529 million employed people followed by only 9.62 There are 57 million people in Bangladesh who reside at the million people in . Barisal remains 30-64 age group reflecting a good potential for labor market. at the bottom of the list in terms of employed population See Table 1. Only 7.5 million people are above 65+ years. An comprising only 5% of employed population. It has older age dominated labor market pushes up the employers’ only 0.299 million employed people compared to 9.555 wage costs if current earnings differentials are maintained million people in . Although the number by age [30]. Moreover, the older employees are at higher of employed population varies according to area and risks of long-term unemployment following job loss [31]. population density, Dhaka deserves the special attentions There are 52.4 million people in 0-14 age group indicating for labor policies. a handsome labor force in coming decades. One important feature of population structure in Bangladesh Education is approximately equal gender ratio. It requires special Bangladesh has a three-tiered educational system labor policies for utilizing this 78.9 million female conforming to the UN’s Education for All (EFA) people. The majority of this female population remains objectives. Education exerts significant implications for outside the labor force. There is a variation in population labor market.

Tota l Population 158.5 m

W orking age P opulation 106.1 m

Labour Force (LF) 62.1 m Outside the LF 44.0 m

Employed Unemployed 59.5 m 2.6 m

Potential labour Time Related force Underemployed 2.7 m 1.8 m Underutilized 7.1 m

Fig. 1: Distribution of Population by Labour Force Framework [7]

DUET Journal 86 Volume 4, Issue 1, December 2018 An Analysis of Division-wise Employment Patterns in Bangladesh: Decent Work Perspective

Table 1: Distribution of the population, by sex, age group and area [7] (In millions) Age Rural Urban Bangladesh Group Male Female Total Male Female Total Male Female Total 0-14 20.1 18.7 38.8 7.0 6.6 13.6 27.0 25.3 52.4 15-17 3.6 2.6 6.2 1.3 1.2 2.4 4.8 3.8 8.6 18-24 6.2 7.1 13.3 2.5 3.3 5.8 8.7 10.4 19.1 25-29 4.2 5.3 9.5 2.0 2.5 4.4 6.2 7.8 13.9 30-64 20.1 20.3 40.4 8.6 8.0 16.6 28.7 28.3 57.0 65+ 3.3 2.6 5.8 0.9 0.7 1.6 4.2 3.3 7.5 Total 57.4 56.7 114.0 22.3 22.2 44.5 79.6 78.9 158.5

Table 2: Employed population aged 15 or older, by division and locality [7] Rural Urban City Corporation Total Division Number % Number % Number % Number % Barisal 2459 4.1 412 0.7 128 0.2 2999 5.0 Chittagong 6703 11.3 1457 2.4 1460 2.5 9620 16.2 Dhaka 11187 18.8 3232 5.4 5110 8.6 19529 32.8 Khulna 5958 10.0 1089 1.8 312 0.5 7358 12.4 Rajshahi 7838 13.2 1507 2.5 210 0.4 9555 16.1 Rangpur 6181 10.4 946 1.6 129 0.2 7256 12.2 Sylhet 2674 4.5 382 0.6 156 0.3 3212 5.4 Total 43001 72.2 9024 15.2 7505 12.6 59530 100.0

There is a relationship between education and labor 4 represents the employment distribution by status in market effectiveness. Decent work requires education different divisions in Bangladesh. and training for productive employment. Education is an important mechanism for eradicating poverty and creating Near about 43.2% of total employed population are own productive societies. account workers followed by 39.1% as employees. Only 2.7% employed people are employers indicating lower As per the statistics in Table 3, the highest adult literacy entrepreneurial activities in Bangladesh. 14.5% people rate is 69.2% in followed by 68.7% contribute to family works. These rates vary in terms in Barisal. There is a gender difference in literacy rate. of gender and divisions. Most of the employed people The literacy rate of female is 65.2% compared to 70.8% in Dhaka divisions are employees comprising 15.7% among the male population. Inequality also arises in of total employed population. The employed people, terms of urban and rural areas. The literacy rate in urban on the other hand, of Rajshahi, Chittagong and Barisal areas is 76.8% in against of only 64.4% in rural areas. are own account workers. This is due to the absence of Thus, inclusion of both male and female into educational less organizational jobs in these divisions. For work to programs are necessary in order to make them skilled and be decent, contributing family helpers and own account knowledgeable. This will ultimately result in high labor workers should be brought into the formal employment productivity. sector. Employment by Status Employment by Sector Occupational status is a collective term that encompasses Before 2000s, most of the people in Bangladesh the components, performance, and role performance. were engaged in agricultural activities representing A country’s employment pattern is better understood the dominance of agricultural sector in labor market. by observing the status of employed population. Table However, situations have changed a lot. Now near about

DUET Journal 87 Volume 4, Issue 1, December 2018 An Analysis of Division-wise Employment Patterns in Bangladesh: Decent Work Perspective

Table 3: Literacy rate of the population aged 15 or older, by division, sex and area [7] ( %) Rural Urban Bangladesh Division Male Female Total Male Female Total Male Female Total Barisal 66.9 64.8 65.8 81.7 79.3 80.5 69.8 67.6 68.7 Chittagong 67.6 63.8 65.6 76.1 71.9 73.9 60.3 66.3 68.2 Dhaka 65.9 59.4 62.7 80.9 75.5 78.2 62.2 66.2 69.2 Khulna 68.1 63.4 65.8 79.5 73.6 76.5 70.5 65.6 68.0 Rajshahi 66.1 59.6 62.9 78.4 73.3 75.8 68.6 62.5 65.6 Rangpur 69.2 61.8 65.6 77.8 68.7 73.4 70.6 62.9 66.9 Sylhet 69.2 61.8 65.4 80.0 73.3 76.6 71.3 63.9 67.5 Total 67.3 61.6 64.4 79.5 74.1 76.8 70.8 65.2 68.0

Table 4: Employed population aged 15 or older, by division and status in employment [7] (% of total employment) Division Own account Contributing Employer Employee Others Total worker family helper Barisal 0.1 2.5 0.9 1.5 0.0 5.0 Chittagong 0.3 7.6 2.5 5.6 0.1 16.2 Dhaka 1.2 12.4 3.4 15.7 0.1 32.8 Khulna 0.4 5.8 2.0 4.1 0.1 12.4 Rajshahi 0.2 7.8 2.8 5.2 0.0 16.1 Rangpur 0.3 4.8 2.0 5.1 0.0 12.2 Sylhet 0.3 2.4 0.8 2.0 0.0 5.4 Total 2.7 43.2 14.5 39.1 0.4 100.0

36.9% employed persons are involved in service sector. Labor Force Participation Rate Nonetheless, agriculture remains at the dominant sector Labor force participation rate (LFPR) is an important for employment in Bangladesh till now. Employment by indicator to determine the size and composition of a sector portrays the economic development of a country country’s human resources. However, this LFPR may over the time. change due to changes in demographic, cultural, and institutional factors [32]. Information regarding LFPR is As stated in table 5, agriculture is the prime sources of critical for formulating employment policies addressing employment in Bangladesh comprising nearly 42.7% of trainings needs and gender composition. total employed population. The people in Dhaka division are more employed in agricultural, service and industry There are significant differences in LFPR in different sectors than those of other divisions. divisions in Bangladesh. Surprisingly, Khulna, Rajshahi, and Rangpur have higher LFPR than that of Dhaka One common feature among all divisions is the dominance division. See table 6. The LFPR is 55.8% in Dhaka division of agricultural sector in employment. The people of compared to 67.4% in Rajshahi division. The differences Rajshahi and Rangpur divisions are more employed in also arise in terms of gender and locality. The gender agricultural sectors compared to other divisions except inequality in terms of LFPR is acute in Bangladesh. Dhaka division. There is almost equal distribution of The LFPR is 81.9% for male population in against of only employed population between agriculture (7.0%) and 35.6% for female population. Thus, a significant portion service (6.1%) in Chittagong division. of working age population remains outside the active labor

DUET Journal 88 Volume 4, Issue 1, December 2018 An Analysis of Division-wise Employment Patterns in Bangladesh: Decent Work Perspective

Table 5: Employed population aged 15 or older, by division and sector of employment [7] (% of total employment) Sector of employment Division Agriculture Industry Service Total Barisal 2.3 0.9 1.8 5.0 Chittagong 7.0 3.1 6.1 16.2 Dhaka 9.4 9.2 14.2 32.8 Khulna 6.1 1.9 4.4 12.4 Rajshahi 8.6 2.9 4.6 16.1 Rangpur 6.7 1.7 3.7 12.2 Sylhet 2.6 0.7 2.1 5.4 Total 42.7 20.5 36.9 100.0

Table 6: Labour force participation rate (LFPR) aged 15 or older, by division, sex and area [7] (as % of working age population) Rural Urban Bangladesh Division Male Female Total Male Female Total Male Female Total Barisal 80.4 31.0 54.9 79.6 24.6 51.6 80.2 29.8 54.3 Chittagong 75.7 36.6 54.6 79.6 28.1 52.6 76.9 34.0 54.0 Dhaka 81.0 28.3 54.7 82.5 32.2 57.3 81.6 29.9 55.8 Khulna 83.9 44.9 64.4 82.1 32.2 56.9 83.5 42.2 62.8 Rajshahi 85.1 54.1 69.9 81.8 34.4 58.1 84.4 49.8 67.4 Rangpur 85.7 43.0 65.2 85.1 33.9 60.3 85.6 41.5 64.4 Sylhet 82.2 25.0 52.8 77.6 15.7 46.2 81.3 23.3 51.5 Total 81.9 37.6 59.6 81.7 30.8 56.0 81.9 35.6 58.5 force. The LFPR is higher in rural areas that that of urban all divisions in Bangladesh. This indicates the absence of areas. Policies for increasing LFPR are urgently required gender-focused educational policies in Bangladesh. The in order to meet the objectives of full employment of NEET Youth rate is comparatively higher in Chittagong decent work agenda. division (39.5%) compared to 25.8% in Rajshahi division. Youth employment is especially encouraged in decent Not in Employment, Education or Training (NEET) work agenda. The objective of decent work, for example, NEET represents the portion of young people of total is to foster full employment for all irrespective of sex, age population who are not in employment, education or and nationality. Decent work agenda is thus stumbled in training. Thus, NEET youth can either be unemployed, Bangladesh at this point considering higher NEET youth inactive, or not involved in education. A country rate. with NEET rate faces multiple healths, economic and Unemployment psychosocial challenges. Henderson et al. [33] found that NEET youth are associated with multiple psychosocial An ‘unemployed’ is a person who does not have a job, but risk factors. he or she is available for doing a job as well as he or she searching the job. The term ‘unemployment’ thus must Near about 34.37% of working age people in who are satisfy three conditions: without work, currently available for not in employment, education or training. Thus, valuable work, and searching work. Unemployment rate is the most youth human resources remain idleness in Bangladesh. commonly used indicator for labor market analysis. It also Gender differences in NEET are observed. See table 7. serves as an important indicator to measure decent work. NEET youth rates are higher among female persons in

DUET Journal 89 Volume 4, Issue 1, December 2018 An Analysis of Division-wise Employment Patterns in Bangladesh: Decent Work Perspective

Table 7: NEET by division area and sex of population aged 15 years and over [7] (% of total working age population) Rural Urban Bangladesh Division Male Female Total Male Female Total Male Female Total Barisal 12.2 63.2 38.4 11.9 66.2 39.5 12.1 63.8 38.7 Chittagong 16.6 58.6 39.2 13.2 65.1 40.4 15.5 60.5 39.5 Dhaka 11.2 65.5 38.3 9.7 59.4 34.6 10.6 62.9 36.8 Khulna 8.8 50.0 29.0 9.0 59.4 34.4 8.2 52.0 30.1 Rajshahi 7.1 41.3 23.8 8.6 57.5 33.0 7.4 44.8 25.8 Rangpur 7.6 55.5 30.6 7.8 61.7 33.9 7.6 56.5 31.2 Sylhet 11.9 68.1 12.0 7.8 72.9 42.9 11.9 69.0 41.2 Total 10.6 57.4 34.2 10.2 61.3 36.0 10.5 58.5 34.7

The gender inequality is observed in case of unemployment In Bangladesh, for example, informal sector contributes rate in Bangladesh. See table 8. The unemployment rate nearly 64% of total gross domestic product [34]. for female is 6.8% compared to only 3.0% in Bangladesh. However, less unemployment rate in Bangladesh does not The informal employment is calculated based on four imply that people are involved in formal and productive factors: institutional sector, establishment registration, sectors. The unemployment scenario is terribly high in status in employment, and contribution to pension or comprising 8.0% of total work force. retirement fund. According to Hussmanns [35], informal The rate is comparatively lower in Rajshahi division employment cuts across all employment categories such (3.0%) followed by (3.1%). Again, the as, own account workers, employees, employers, and rate is higher in urban areas than that of rural areas. unpaid family workers, and so on. Chen [36] explained the segmentation of informal employment through a graphical Informal Employment presentation. See Figure 2. Chen [36] represented the hierarchy of classes of informal workers according to their Informal employment encompasses all the jobs included visibility. The employers are the most visible ones sitting in the concept of employment in informal sector [6]. Jobs at the peak of the diagram. Home workers, on the other in informal sector refer to those jobs that generally lack hand, remain at the bottom of the diagram that are mostly basic legal or social protections or employment benefits. neglected in policy making. Moreover, informal employment can also be found in formal sector. Informal employment thus occupies a Division-wise differences are observed in informal major portion of total employment in many countries. employment in Bangladesh. See Table 9. The IER rate is

Table 8: Unemployment rate aged 15 or older, by division, area and sex [7] (Unemployment rate) Rural Urban Bangladesh Division Male Female Total Male Female Total Male Female Total Barisal 3.4 5.1 3.9 5.2 11.8 6.8 3.8 6.1 4.4 Chittagong 3.1 7.5 4.7 2.8 7.7 4.2 3.0 7.5 4.5 Dhaka 2.4 4.7 3.0 3.1 5.6 3.8 2.7 5.1 3.3 Khulna 2.7 5.4 3.7 2.5 8.8 4.3 2.7 6.0 3.8 Rajshahi 2.4 3.1 2.7 2.8 8.4 4.5 2.5 3.9 3.0 Rangpur 4.4 14.8 7.7 5.1 20.5 9.3 4.5 15.6 8.0 Sylhet 2.7 4.2 3.0 2.5 6.2 3.1 2.6 4.4 3.1 Total 2.9 6.5 4.1 3.2 7.7 4.4 3.0 6.8 4.2

DUET Journal 90 Volume 4, Issue 1, December 2018 An Analysis of Division-wise Employment Patterns in Bangladesh: Decent Work Perspective

The demographic picture of Bangladesh has changed a Self-Employment lot in recent years exerting significant implications for Employers labor market. A higher growth of female population is

Own account observed in the population structure in Bangladesh. Thus, operators strategies should be developed to utilize this valuable

Unpaid family workers portion of population. Educational programs and Wage Employment vocational training initiatives should be taken to turn this Employees of informal enterprises population into wealth. Employment oriented educational Others Informal wage workers programs are key to utilize this valuable human resources.

Industrial out workers/home workers The second notable findings regarding demographic profile are the high urban population growth in almost all Fig. 2: Segmentation of the Informal Economy [37] divisions. These two demographic features increase the working age population for both male and female in rural higher in Rangpur division (90.3%) in comparison with and urban areas. other divisions. The gender difference is also notable. Nearly 95.4% female persons are involved in informal Special policies need to be taken to involve urban females employment compared to 82.3% of male persons. People into full employment. In this case, Bangladesh has the in urban areas are less involved in informal employment opportunity to covert this working age people into than those of rural people. Thus, decent work is still a human capital. Thus, the country can reap the rewards of dream for the people in Bangladesh. demographic dividend. There is a significant difference in participation between males and females in labor force. Although female participation in labor force has risen 5. KEY FINDINGS AND POLICY RESPONSES substantially, the level remains low compared to male participation. The scenario is almost same disregarding The economic growth of Bangladesh has been satisfactory division-wise characteristics. This implies for in- along with a degree of macroeconomic stability. The depth analysis to identify the basic causes and possible GDP growth rate has remained above 6% in most years solutions. The economic growth will be accelerated at a since early 2000s [37]. Although the economic growth higher rate if these unutilized resources can be included has been satisfactory, no notable improvement has been in active labor force. Again, there is a significant seen in employment performance in spite of substantial difference between males and females in terms of NEET. jobs generated in Ready Made Garments (RMG) sector. This is really a concerning matter for Bangladesh. The Moreover, the population has grown by 1.5% per year case is severe among the females in Rajshahi division. since 2000s [6]. As a result, the doors of underemployment, Specific policies to enroll more female into at least working poor and sub-standard working conditions remain at the center of employment relationships in Bangladesh. primary and secondary education programs should be In this section, the key findings of employment patterns taken. Again, more vocational training programs at root in different divisions in Bangladesh from decent work levels, especially among the females in rural areas, will perspective are presented along with the policy options. be quite useful.

Table 9: Informal employment aged 15 or older, by division, area and sex [7] (% of total employment) Rural Urban Bangladesh Division Male Female Total Male Female Total Male Female Total Barisal 84.8 97.0 88.3 69.4 85.4 73.1 81.8 95.3 85.5 Chittagong 83.6 97.0 88.3 75.8 92.7 80.3 81.0 95.9 85.9 Dhaka 86.2 96.6 88.9 73.5 90.5 78.2 80.9 93.9 84.3 Khulna 83.3 97.2 88.0 69.6 89.1 74.9 80.5 95.9 85.5 Rajshahi 88.0 97.1 91.4 74.2 90.8 78.9 85.2 96.2 89.2 Rangpur 89.8 97.7 92.1 76.0 91.9 79.8 87.6 97.0 90.3 Sylhet 82.0 95.0 85.2 70.1 84.3 72.5 79.9 93.7 83.0 Total 85.9 97.0 89.3 73.6 90.6 78.1 82.3 95.4 86.2

DUET Journal 91 Volume 4, Issue 1, December 2018 An Analysis of Division-wise Employment Patterns in Bangladesh: Decent Work Perspective

The unemployment rate in Bangladesh is 4.2% in 2015 The labor market information should be available among which is comparatively lower than that of many other the people in both rural and urban areas, especially among developing economies. It is simply due to people cannot the female and youth. It will help them to make a close link remain unemployed in this country to support the living to the labor market. Labor market is somewhat flexible expenditures. They grasp whatever the work they get. and multidimensional. The government should collaborate The situation is corporately worse in Rangpur division. It with national and international development organizations is still possible to hire workers without raising real wages on employment and labor related issues. Working with as Bangladesh has reached or about to reach the Lewis ILO in promoting decent work agenda in Bangladesh is turning point [38]. The government and the respective obvious. Moreover, arranging regular social dialogues manpower authority should give concentration in bringing with labor unions, employers, and interest groups are down the unemployment rate among the female and youth quite necessary. Bangladesh is blessed with a vast of both urban and rural areas. working age population. Although a significant portion of working age population is outside the labor force, she Nearly 89.2% of total working age people are involved in has better prospect for utilizing this huge population. informal employment. The statistics more or less portray Consistent economic growth and improvement in human the common scenario in all divisions. Thus, it is a serious development support this logic. national labor issue that requires immediate attentions of the respective bodies. Decent work objectives are largely stumbled in this case. People of Dhaka are more involved 6. RESEARCH CHALLENGES in industry and service sectors. Most of the people, in contrast, in Rajshahi and Rangpur are involved in Although lots of debates and discussions have been agricultural sectors. Thus, this variation in involvement in taken places since its inception in 1999, decent work different sectors causes imbalanced distribution of labor concept is at evolving stage. Lots of studies are being force. Establishing more public industrial and service conducted around the world examining its applicability enterprises in deprived divisions may be a good step in and acceptability at national and international levels. this regard. In addition, the government should encourage More interestingly, research is being conducted to see private investors through different tax and financial how this concept can work with different institutional incentives to set up industries in these regions. settings and varying national demographics and cultures. Labor underutilization is a common factor of labor market Labor market itself is a multidimensional subject. Thus, in Bangladesh. More investment in higher education there are a lot of areas for doing research in these fields. is required to reduce labor underemployment. Most No significant work on decent was conducted till now in of the female employees are involved in traditional Bangladesh except some country-wise specific working jobs remaining many productive jobs vacant. It is papers. Even, the concept of decent work and its different recommended that planned policies should be adopted measurement indicators are not well established till now. to create more employment opportunities for female, The first, more importantly, area of future research is to especially by offering more non-traditional jobs. Again, examine the applicability of decent work agenda through separate strategies are required for wage employed and the labor force framework in Bangladesh. The demographic self-employed people for increasing labor productivity. profiles are complex and uncertain in Bangladesh. The country has been progressed a lot towards the road of Another key feature of Bangladesh labor market is the sustainable development. Thus, it is interesting to see how higher participation in unproductive sectors. Thus, it is much this decent work agenda is effective in Bangladesh wise to make structural transformation in the economy with the current demographic profiles and social traditions. through diversified growth, especially for manufacturing sector. The GDP growth rate in Bangladesh is appreciable. The average wages have increased in recent years in However, efforts should be made to maintain this Bangladesh. Has it truly raised real wages? Is there gender inequality in wages? These wage related issues should be consistent GDP growth that will automatically create studied in alignment with decent work objectives. One more jobs. Thus, labor surplus will be absorbed at a large of the important objectives of decent work is to ensure extent. Bangladesh has made significant improvement the social protection of workers. Are the workers in in reducing illiteracy rate. However, mere increasing Bangladesh socially protected as per ILO agenda? Is it literacy rate will not bring fruitful results for economy equally same for both male and female workers? urban until and unless the educational programs are designed and rural areas? different divisions? The answers of as per the needs of labor market. Adequate opportunities these questions should be found out through rigorous and facilities should be available for vocational education studies. The working conditions in Bangladesh have and time-effective trainings. Special training programs for been criticized worldwide after the Rana Plza collapse. disadvantaged groups are required. How much the employees are secured at the workplace?

DUET Journal 92 Volume 4, Issue 1, December 2018 An Analysis of Division-wise Employment Patterns in Bangladesh: Decent Work Perspective

Is there gender inequality? sexual harassment? Work-life [5] J. Wiegratz, “Book Review Symposium: The balance? How far the initiatives have been taken as per the Precariat: The new dangerous class, by Guy guidelines of ILO? Thus, more research works can be done Standing,” Global Discourse: An Interdisciplinary on these grounds. The dimensions of decent work can be Journal of Current Affairs and Applied Contemporary examined at both sector and firm levels. In short, decent Thought, Vol. 3, No. (3-4), pp. 538-543, 2013 work is an evolving concept with different dimensions. Thus, the interested researchers and academics have the [6] J. Somavía, “Juan Somavia, of Chile, takes helm as opportunities to dig this vast field of research. new Director-General,” World of Work, Vol. 29, pp. 4-6. [7] Bangladesh Bureau of Statistics, Quarterly Labour 7. CONCLUSION Force Survey 2015-2016, BBS, Dhaka, 2017.

The decent work agenda is impressive in many respects. [8] R. J. Torraco, “Writing Integrative Literature The objectives and dimensions are universal because Reviews: Using the Past and Present to Explore the they are applicable to all countries irrespective of gender Future” Human Resource Development Review, and age at certain extent. ILO’s decent work agenda is Vol. 15, No. 4, pp. 404–428, 2016. undoubtedly an appreciable initiative for promoting social [9] S. Routh, “Building informal workers agenda: justice through securing labor rights and dignity. Despite Imagining informal employment in conceptual a small country with a vast population, Bangladesh has resolution of informality,” Global Labour Journal, made significant progress in economic growth and human Vol. 2, No. 3, pp. 208–227, 2011. development. The higher growth of female participation in national labor force and dominance of youth age [10] S. Rosewarne, “The ILO’s Domestic Worker group have created the bright prospects for Bangladesh. Convention,” ILO, Geneva, 2013. Nonetheless, a wide variation is found in labor force structure of different divisions in Bangladesh in terms [11] R. Srivastava, “Changing employment conditions of unemployment, labor force participation rate, NEET, of the Indian workforce and implications for decent informal employment, labor migration, and sector-wise work,” Global Labour Journal, Vol. 3, No. 1, pp. involvement. Gender inequality exists at a large scale in 63–90, 2012 all important dimensions of labor market. Customized [12] P. Moore, “Legitimacy, tribridity, and decent work division-wise policies for different age and sex groups deficits,” Globalizations, Vol. 11, No. 3, pp. 315– along with a planned national labor policy are critical 330, 2014. to foster full employment in Bangladesh. In addition, collaborative work with ILO and other international [13] R. Munck, “Globalisation and the labour movement: development organizations is supposed to be inevitable Challenges and responses,” Global Labour Journal, for designing time-effective labor policies. Vol. 1, No. 2, pp. 218–232, 2010. [14] J. Somavía, “Juan Somavia, of Chile, takes helm as new Director-General,” World of Work, Vol. 29, REFERENCES pp. 4-6. [1] J. Somavía, Perspectives on Decent Work: Statements [15] M. Rosen, Dignity: Its history and meaning, by the ILO Director-General, International Labour Harvard University Press, Cambridge MA, 2012. Organization (ILO), Geneva, 2001. [16] G. Rodgers, “Labour Market Flexibility and Decent [2] J. Somavía, Perspectives on Decent Work: Work” DESA Working Paper No. 47, United Statements by the ILO Director-General, Nations, New York, 2007 International Labour Organization (ILO), Geneva, 2001. [17] A. Larion, “Major Objective of Decent Work-ILO,” Ecoforum, Vol. 2, No. (1/2), pp. 74-77, 2013. [3] G. Standing and O Precariado: A nova classe perigosa, Autêntica Editora Ltda, Belo Horizonte, [18] G. MacNaughton and D. F. Frey, “Decent work, MG, 2013. human rights, and the Millennium Development Goals”, Hastings Race and Poverty Law Journal, [4] E. Armano and A. Murgia, “The precariousnesses Vol. 47, pp. 303-352, 2010. of young knowledge workers: A subject oriented approach,” Global Discourse: An Interdisciplinary [19] B. Hepple, “Equality and empowerment for decent Journal of Current Affairs and Applied Contemporary work,” International Labour Review, Vol. 140, No. Thought, Vol. 3, No. (3-4), pp. 486-501, 2013. 1, pp. 5-18, 2001.

DUET Journal 93 Volume 4, Issue 1, December 2018 An Analysis of Division-wise Employment Patterns in Bangladesh: Decent Work Perspective

[20] R. Anker, I. Chernyshev, F. Mehran, P. Egger, and [30] R. Shimer, “Why Is the U.S. Unemployment Rate J. Ritter, “Measuring decent work with statistical So Much Lower?” Massachusetts, MIT Press, 1999. indicators,” Working Paper No. 2, International [31] P. Johnson and K. Zimmerman, Ageing and the Labour Office, Geneva, 2002. European labour market: public policy issues, [21] F. L. Vosko, “Decent Work: The Shifting Role of Cambridge University Press, Cambridge, 1993. the ILO and the Struggle for Global Social Justice.,” [32] P. Gregg, G. Knight, and J. Wadsworth, The Global Social Policy, Vol. 2, No. 1, pp. 19-46, 2002. cost of job loss, Manchester University Press, [22] S. Bell and K. Newitt, “Decent work and poverty Manchester, 1999. eradication: Literature review and two-country [33] A. Mosisa and S. Hipple, “Trends in Labor Force study,” Ergon Associates, London, 2010. Participation in the United States”, Monthly Labor Review, Vol. October, pp. 35-57, 2006. [23] D. L, Blustein, C. Olle, A. Connors-Kellgren, and A. J. Diamonti, “Decent Work: A Psychological [34] L. J. Henderson, D. L. Hawkea, and G. Chaim, Perspective,” Frontiers in Psychology, Vol. 7, No. “Not in employment, education or training: Mental 407, pp. 1-10, 2016. health, substance use, and disengagement in a multi-sectoral sample of service-seeking Canadian [24] F. Hauf, “The Paradoxes of Decent Work in Context: youth,” Children and Youth Services Review, Vol. A Cultural Political Economy Perspective,” Global 75, pp. 138-145, 2017. Labour Journal, Vol. 6, No. 2, pp. 138-155, 2015. [35] S. D. Maligalig, S. Cuevas, and A. Rosario, [25] A. M. Haddad and J. Hellyer, “Decent Work and “Informal Employment in Bangladesh,” ADB Social Protection in Belo Horizonte, Brazil,”, Economics Working Paper Series No. 155, ADB, Journal of Planning Education and Research, Vol. Manila, 2009. 35, No. 2, pp. 228-230, 2017 [36] R. Hussmanns, “Measuring the Informal Economy: [26] M. Muqtada, “Promotion of employment and From Employment in the Informal Sector to decent work in Bangladesh: Macroeconomic and Informal Employment,” Integration Working Paper labour policy considerations,” International Labour No. 53, International Labour Office., Geneva, 2004. Organization, Geneva, 2003. [37] M. Chen, “Rethinking the Informal Economy: [27] Siddiqui, T, “International labour migration Linkages with the Formal Economy and the Formal from Bangladesh: A decent work perspective”, Regulatory Environment,” Paper presented at the Working Paper No 66, International Labour EGDI and UNU-WIDER Conference, Unlocking Office, Geneva, 2005. Human Potential: Linking the Informal and Formal Sectors, Helsinki, Finland, 2004. [28] M. M. Rahim, “Legal Regulation of ‘Decent Work’: Evidence from Two Big Industries in Bangladesh,” [38] R. Islam, “The Employment Challenge Faced by Australian Journal of Asian Law, Vol. 14, No. 1, Bangladesh: How Far is the Lewis Turning Point?”| pp. 1-18, 2013. The Indian Journal of Labour Economics, Vol. 57, No. 2, pp. 201–225, 2014. [29] C. R. A. Repon, S. Rezwana, and A. A. Alam, “Labour Rights and Decent Work Status of [39] R. I. Rahman, “Bangladesher Arthaneeti O Working Women in Bangladesh”, Labour at Unnayan: Swadhinotar Por 40 Bachhar,” Sahitya Informal Economy, Dhaka, 2015. Prakash, Dhaka, 2012.

______End Note [1] was added as eighth division in Bangladesh on 14 September 2015. However, labor statistics data are not available as separate division till the last quarterly labor force survey (2015-2016) of Bangladesh Bureau of Statistics (BBS). The labor statistics data of Mymensingh division is included in Dhaka division.

DUET Journal 94 Volume 4, Issue 1, December 2018