WB suggests 1 million extra jobs during recession

The World Bank has suggested Bangladesh create an additional one million jobs for the people likely to lose jobs at home and abroad because of the global economic recession.

"Thus, at least 2 to 2.5 million new local jobs will be needed until the global economy recovers fully, compared with 1 to 1.1 million local job creation needed prior to the global economic crisis," the World Bank said in a report.
The report titled "Bangladesh: State of the Economy and Policy Response to the Global Economic Crisis" was launched today.

At a press conference at the WB office on the occasion, Country Director Xian Zhu said, "The government needs to think about precautionary measures to mitigate the impact of the crisis, especially on Bangladesh's poor. It is the poor who are hardest hit in times of such crisis."

According to the report, the global meltdown may lead to shedding 50,000 jobs in jute sector alone by the end of the FY09 in Bangladesh.

Twelve spinning mills out 341 mills have been closed in the textile sector. Demand for labour in frozen food and leather sectors also weakened, it added.

Senior economist Zahid Hossain presented the report.

The report said the economy of Bangladesh averted the first round effects of the global financial crisis so far. But recession in developed countries and the collapse in global trade posed major risks to export and remittances.

"Bangladesh has started seeing the impact of the global economic crisis and the scale may worsen quickly," the report said.

Manpower export has slowed while number of migrant returnees has increased.

In the first nine months of FY09 (July-March), 537 thousand migrant workers found employment abroad compared to 720 thousand in the same period last year.

The outflow to Gulf Cooperation Council (GCC) member countries has declined by 16 per cent, from 407 thousand in FY08 (July-Feb) to 342 thousand in FY09 (July-Feb).

Monday, April 13, 2009