Industrial sector struggling to generate employment: traders

The industrial sector has failed to generate the expected level of employment during the last five years despite ensuring a higher contribution to the gross domestic product (GDP). The industrial sector output drop is imposing a severe threat in terms of maintaining social harmony and discipline.

Still, the industrial sector is struggling to recover from the loses of the adversity of the pandemic and the Russia-Ukraine war, resulting from the supply chain disruption.

The employment of the industrial sector fell by 3.4 percent last year to 17 percent which was 20.4 percent in 2017 while its contribution to the country's GDP went up to 36.9 percent from 32.5 percent during the period, according to a media report.

President of President Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) Mahbubul Alam has called for shunning the politics of blockades and hartals saying that a day of such protests cost the economy up to Tk6500 crore.

After the COVID-19 pandemic and the effect of rising fuel prices due to the Russia-Ukraine war, the entrepreneurs are not able to bear the losses caused by political violence, he said.

Political activities are also causing violence on the highways, which is giving the wrong message to foreign buyers and investors.

He said people are buying goods at higher prices as the supply line is disrupted and transport fares hiked due to the political unrest.

The industrial sector is facing disruption in production as the supply of raw materials is being hampered by hartal (general strike) and blockade. If such a situation continues, many factories will shut down, he feared.

SM Mizanur Rahman, an RMG stakeholder said that the stakeholders are facing an acute raw material crisis for industrial production, hampering the growth of the economy.

The industrial sector is failing to ensure its normal contribution due to a lack of adequate raw materials, resulting from the dollar crisis in the country, Rahman added.

Talking to Business Eye, SM Mizanur Rahman, a reputed importer said that many companies import intermediate raw materials and use them to produce finished products. 

The prices of these products have increased in the market for the skyrocketing inflation; he said adding that a negative situation is prevailing in almost all sectors. 

The pace of new industries has stagnated. The condition of import-dependent industries is very fragile. It has also stalled the pace of new employment.

Under such a hostile situation, the employment generation is becoming tough for the industrialists. Many workers have become unemployed as the stakeholders are unable to pay the salaries of the existing employees.

Many jobless youths were involved with the drug dealing business during the pandemic period for acute financial crisis, he said adding that this time the ongoing political anarchy is pushing the economy into profound uncertainty.