Unemployment fears rise as 80% of RMG owners adopt automation

Eighty per cent of garment factory owners in Bangladesh plan to invest in automated machinery within the next two years. Automation in the sector is expected to grow by over 13% during this period.

Despite the increase in efficiency and projected production increases of up to 22%, concerns about rising unemployment persist.

Out of an average of 2,250 workers per factory, only 500 are expected to be directly involved with automation processes, leaving many jobs at risk, according to data from a research.

The research was presented by LightCastle Partners at a dialogue held at a hotel in the capital's Gulshan today.

The event was organised by LightCastle Partners, an international business consultancy firm, in partnership with Policy Exchange Bangladesh.

Dr M Masrur Reaz, chairman of Policy Exchange Bangladesh, moderated the dialogue, where industry leaders and experts addressed the challenges of automation.

In his opening remarks, Kazi Faisal Bin Seraj, country representative of The Asia Foundation, stressed the need for collective action to future-proof the ready-made garments (RMG) industry.

Zahedul Amin, co-founder and director of LightCastle Partners, delivered a keynote presentation titled "Future-Proofing RMG: Tackling Automation for Sustainable Growth and Worker Wellbeing."

He emphasised the need for a balanced approach, combining industry competitiveness through automation with the safeguarding of workers via upskilling and reskilling programmes.

The event emphasised the need for urgent action to address the potential impacts of automation on the workforce, calling for recommendations that ensure sustainable growth while protecting the livelihoods of garment workers.

Zahedul Amin shared findings from recent research showing that 93% of garment operators in Bangladesh are willing to work with automated machines, with 70% of female workers expressing interest in gaining new skills for operating modern machinery.

Professor Dr Engineer Ayub Nabi Khan, vice-chancellor of BGMEA University of Fashion and Technology (BUFT), Shams Zaman, country manager of PricewaterhouseCoopers (PwC) Bangladesh, and Habibullah N Karim, founder and CEO of Technohaven Company Limited, also spoke at the event.

They discussed strategies for maintaining the RMG sector's resilience in the face of technological change, such as prioritising the adoption of new technologies, improving occupational safety, and implementing upskilling and reskilling programmes to transition workers into new roles.

The panellists also underscored the importance of integrating circular economy principles to reduce carbon emissions and implementing strategies to ensure long-term job security for those affected by automation.

These initiatives are essential in protecting workers and helping Bangladesh continue its growth as a leading global exporter of ready-made garments.

Bangladesh is the second-largest exporter of ready-made garments globally, with $47 billion in exports in the 2023 fiscal year, according to data from the Export Promotion Bureau. The RMG sector contributed 10.35% to the country's GDP in 2023, employing 4.1 million workers, 60% of whom are women.