Why AI Disrupt Bangladesh Job Market

July 5, 2026

Around 40 per cent of Bangladesh’s workforce could face disruption from automation and artificial intelligence, raising urgent questions about the future of the country’s labour-intensive manufacturing and its ability to protect jobs. The export-led, labourintensive growth model is under pressure as manufacturers adopt automation and digital production systems.

The transition comes at a time when large segments of the workforce remain in insecure or informal employment, and young people, women and persons with disabilities are particularly vulnerable to displacement and limited access to reskilling. The pressures are likely to intensify as Bangladesh approaches LDC graduation.

The withdrawal of preferential trade access will sharpen competitive pressures in export sectors, particularly RMG, accelerating the shift towards automation and higher-productivity production systems. The country lost nearly 1.3 million jobs in 2024, with about 90 per cent of those losses affecting women. Automation especially became disruptive in the ready made garments sector, where some estimates suggest up to 60 per cent of female jobs could disappear by 2041 if current trends continue.

Current policy instruments of Bangladesh fail to solve these problems as challenges from AI, the Fourth Industrial Revolution (4IR), and Technical and Vocational Education and Training (TVET) reform have yet to be effectively integrated into sector-specific transition strategies and workforce adaptation mechanisms. Skills systems of Bangladesh are failing to meet labour market demands as TVET lacks strong connections with industry and emerging sectors