Lack of skills hampering productivity in key sectors

Studies by the Bangladesh Institute of Development Studies (BIDS) have revealed a substantial gap in the skill sets of workers in labour-incentive industries such as readymade garments (RMG), light engineering and electronics, leather and footwear, and agro-food processing. The research studies indicate skill gaps and mismatches ranging from 45 per cent to 70 per cent in these sectors. Skill gaps result in low productivity in factories and the hiring of foreign workers at managerial levels, leading to a loss of foreign currency.

A study focused on the RMG sector found that 6.5% of woven industries and 2.99 per cent of knit industries expressed the need to hire skilled foreign workers to address the skill gap, particularly at the managerial level. It is said that around 50,000 foreigners are currently working in Bangladesh due to the lack of skilled leadership in managerial positions, resulting in an annual loss of $5-6 billion. But the actual numbers will be much higher.

Experts for decades have been stressing effective collaboration between industry and academia to create skilled manpower. Another study focused on the light engineering and electronics sector revealed that approximately three-fourths of workers face a mismatch between their field of study and their job. And the under-education is more severe in the sectors by 60 per cent mismatch. This means that the degree to which workers’ education levels are below matches those required for their current jobs.

Workers in developed countries are more productive than in developing countries as skill matters. In respect of Bangladesh, lacks nutrition from childhood affects cognitive and skills development in the long run. The salaries are not good enough to keep them working in the long term. The knitting industry currently faces a skill gap of 68.79 per cent, whereas the woven industry has a slightly lower gap of 47.83 per cent.

A total of 476 workers from 119 enterprises were interviewed, and their skill gaps were evaluated by employers based on their proficiency levels. On the other hand, management employees, quality controllers, and some finishing operators contribute to a larger share of the overall skill gap among employees in the woven industry.
The agro-food processing sector is facing a 47 per cent skill gap, primarily due to the lack of specialized training and knowledge in food safety, sanitation, and food testing procedures.
We repeat the solution of collaboration between academia and industries and opportunity creation for innovation and research.