Industrial employment falls, investment doesn't pick up, admits Muhith

Employment in the country's industrial sector has declined over the years, finance minister AMA Muhith acknowledged in his budget speech on Thursday.

He squrely blamed it on automation and the use of advanced technology in the sector.

The share of total employment in the industry was 22.3 per cent in 2010 and it declined to 20.3 per cent in 2016-17 financial year, he said.

“The contribution of the industry sector to employment generation is not up to the expected level... despite the availability of sufficient manpower in the labour market, their employment opportunity is not expanding as expected because of automation and the use of advanced technology in the industry sector,” the finance minister said in his speech.

Muhith also admitted that because of skills deficiency in the local manpower, the middle and high level management positions are being manned by the experts from neighbouring countries.

"Their replacement will require substantial skill enhancement of local manpower. If it is possible, this would, on the one hand will save huge amount of foreign currency while creating opportunity for productive and decent employment of our own manpower,” he said.

The finance minister also acknowledged that foreign direct investment and private investment did not improve at expected level.

“We are seriously reviewing the fact that despite building investment-friendly infrastructure, development of the energy sector, necessary facilities and support for setting up industry, simplifying the rules and regulations, foreign direct investment and private investment did not pick  up as expected,” he said.

He said that the government has taken steps to identify the obstacles and is taking actions for their removal.

“I firmly believe that with the ushering in a stable and advanced economy after 2015 we will be able to promote further investment while attracting more foreign investment,” he said.

Referring to establishment of 76 economic zones so far, the finance minister expressed hope that once they house industrial units, export earnings will increase by additional US$40 billion and 10 million more jobs will be created.