1.22 Million RMG Jobs at Risk Due to AI and Automation

The rapid expansion of Artificial Intelligence (AI), automation, and technology-driven manufacturing systems has put 1.22 million jobs in the country's primary export sector, the Ready-Made Garment (RMG) industry, at risk. Projections indicate that nearly 60% of female workers in this sector could face job displacement by 2041. A lack of necessary policy preparation, coupled with a significant mismatch between acquired skills in the education system and labor market demands, is exacerbating this threat.

CPD’s observation highlights that as Bangladesh prepares to graduate from the Least Developed Country (LDC) list, automation, the digital economy, and shifting global trade structures are creating new pressures. In 2024, approximately 1.3 million jobs were lost in the country, 90% of which were held by women. According to World Economic Forum forecasts, automation will eliminate 9 million jobs globally by 2030. While employment in the manufacturing sector has stagnated at 8.1 million despite increased output, much of the service sector remains informal and low-productivity.

To address these challenges, CPD recommends:

• Reforming technical education to align with industrial needs and launching life-long reskilling programs.
• Significantly increasing government investment in education and skill development relative to GDP.
• Establishing a National Labor Market Information System (LMIS) and social protection for gig economy workers.
• Linking industrial incentives to employment creation and adopting inclusive strategies for women, youth, and disabled individuals.
• Addressing policy gaps by creating a unified framework and clear implementation roadmap for the digital economy.

Dr. Towfiqul Islam Khan noted that policymakers are struggling to keep pace with the structural changes in employment. Dr. Debapriya Bhattacharya added that skill gaps, geographical factors, and the AI revolution are making this adaptation difficult. The report was published by CPD on Wednesday (July 15, 2026), during a virtual webinar titled "Future of Work in the Global South: Insights on the Changing Work Environment."

//DBTech/DHE/ED//