Non-farm jobs grow 25pc in a decade, reshaping employment
The number of employment in non-farm economic units in Bangladesh has increased by 25 per cent over a decade. However, this growth is not even across all sectors. While the number of people employed in certain sectors has more than doubled, it has decreased in wholesale and retail trade, one of the country's largest sectors.
According to the Bangladesh Bureau of Statistics (BBS) "Economic Census 2024 (Volume-2)" report, the total number of employed people in non-farm economic units was 24,500,850 in 2013. By 2024, that number increased to 30,632,661. This means the growth over the decade was 25.03 per cent.
However, the picture varies quite a bit depending on the sector. Manufacturing had the highest number of employed people in 2024. Meanwhile, employment in wholesale and retail trade, one of the largest sectors in 2013, fell by 2.6 per cent over the decade.
What is the non-farm sector
According to the definition in the BBS Economic Census 2024, the non-farm sector refers to various economic activities conducted outside of agriculture.
Under the Bangladesh Standard Industrial Classification (BSIC)-2020, establishments and economic units under economic activities other than agriculture are included in this census.
These include manufacturing, trade, transport, education, health, construction, financial services, information technology and various other sectors.
Manufacturing is the largest sector for employment
In 2024, the manufacturing sector employed the highest number of people in the non-farm economy, totaling 9,028,656. In 2013, this number was 7,183,446. Over the decade, employment in the manufacturing sector increased by more than 1.845 million, representing a growth of 25.7 per cent.
The next largest sector is wholesale and retail trade. In 2013, the number of people employed in this sector was 8,398,810. By 2024, it decreased to 8,179,807. This means employment in this sector declined by nearly 219,000 over the decade.
In terms of per centage growth, the administrative and support service activities saw the most significant change. In 2013, employment in this sector was 151,653. By 2024, it increased to 538,516, marking a growth of 255.1 per cent over the decade.
Employment in the construction sector grew from 46,552 in 2013 to 162,062 in 2024, recording a growth of 248.1 per cent. The arts, entertainment and recreation sector experienced a growth of 237.4 per cent.
Additionally, employment in the electricity, gas and air conditioning supply sector increased by 148.7 per cent, while professional, scientific and technical activities grew by 101.8 per cent.
Significant growth in education, health and ICT as well
In the education sector, employment was 1,483,441 in 2013. By 2024, it rose to 2,454,930, registering a growth of 65.5 per cent over the decade.
In the human health and social work sector, employment increased from 418,548 to 711,289, a growth of 69.9 per cent.
In the information and communication sector, employment grew from 106,003 to 164,916, a growth of 63.9 per cent.
Employment decreased in a few sectors
Employment did not increase in all sectors. Over the decade, employment in the wholesale and retail trade sector decreased by 2.6 per cent.
The decline was much steeper in the mining and quarrying sector. In 2013, employment in this sector was 64,444. By 2024, it dropped to 17,426, representing a 73 per cent decrease over the decade.
On the other hand, employment in other service activities increased from 2,193,184 to 2,603,801 and in the accommodation sector, it rose from 43,296 to 52,399.
The structure of employment is changing in the non-farm economy
BBS data indicates that while total employment has increased, the pattern of change varies by sector. A massive number of people have joined the manufacturing and transport sectors. At the same time, growth rates have been relatively higher in sectors such as education, health, ICT, professional and administrative services.
Employment has declined in a few sectors, such as wholesale and retail trade and mining and quarrying.
Md. Ridhwanul Haq, a professor at the Institute of Business Administration (IBA) of Dhaka University, stated that a 25 per cent workforce growth over a decade is plausible. However, the methodology of the survey or research conducted by BBS needs to be examined.
Furthermore, it is necessary to check how many personnel are required in the administrative sector and whether recruitment has been low or high in comparison. Mining and quarrying have decreased in the country, leading to a decline in employment in this sector. Moreover, due to a lack of skilled manpower, individuals involved in this industry cannot be sent abroad either.
Regarding the growth of employment in professional and scientific sectors, the professor said that the nature of this scientific growth must be considered. What is their contribution to the society? We need to think about these issues seriously.