Bangladesh Apprenticeship Recruitment Declines: Barometer Signals Concerns Over Government Skills Development Approach

A recently published ‘Skills Confidence Barometer’ for Bangladesh indicates a worrying trend: a substantial decrease in planned apprenticeship recruitment across key industries. The report, conducted by the Bangladesh Employers’ Federation (BEF) in partnership with the International Labour Organization (ILO) and the Swisscontact Skills Development Project, highlights a growing disconnect between the skills being produced by the education and training system and the demands of the labor market. This decline is occurring at a critical juncture for Bangladesh, as the nation strives to achieve upper-middle income status by 2031 and navigate the challenges of Industry 4.0.

Background: Skills Development in Bangladesh

Bangladesh has made significant progress in expanding access to education, but skills development, particularly technical and vocational education and training (TVET), has lagged behind. Historically, the TVET system has suffered from issues including a negative public perception, inadequate funding, outdated curricula, a lack of qualified instructors, and weak linkages between training providers and industry. The National Skills Development Policy (NSDP) 2018 aimed to address these challenges by promoting demand-driven skills development, strengthening industry involvement, and improving the quality of TVET. Key institutions involved in skills development include the Directorate of Technical Education (DTE), the National Skills Development Authority (NSDA), and various private training providers.

Current Context: The Barometer's Findings

The latest Skills Confidence Barometer, surveying over 300 employers across sectors including garments, leather goods, light engineering, and pharmaceuticals, revealed that 42% of businesses plan to reduce their apprenticeship intake over the next six months. This represents a significant downturn from the 28% who had planned to increase recruitment in the previous survey (conducted six months prior). The primary reasons cited by employers include concerns about the relevance of skills being taught (68%), the lack of practical experience among potential apprentices (55%), and the cost of providing on-the-job training (41%). A concerning 72% of employers reported that graduates and apprentices often require further training before they can be fully productive. The report further indicated that employers largely distrust the current government approach, viewing it as overly centralized and lacking sufficient input from the private sector.

Practical Implications for Bangladesh

This decline in apprenticeship recruitment carries several serious implications for Bangladesh’s economic future. A shortage of skilled workers will hinder industrial growth, reduce productivity, and limit the country’s ability to compete in global markets. The garment industry, which accounts for over 80% of Bangladesh’s exports, is particularly vulnerable, as it requires a large and skilled workforce. The lack of skilled labor could also impede Bangladesh’s progress towards becoming a higher-value manufacturing hub. Furthermore, it exacerbates youth unemployment, a significant social and economic challenge. The ILO estimates that over 4 million young people enter the Bangladeshi labor market each year, but only a fraction receive the skills training they need to secure decent employment.

Risks and Challenges

Several underlying risks contribute to this situation. The limited engagement of the private sector in curriculum development and training delivery is a major obstacle. The NSDA, while mandated to facilitate public-private partnerships, has struggled to effectively coordinate industry involvement. Another challenge is the rapid pace of technological change, which requires continuous upskilling and reskilling of the workforce. The current TVET system is often slow to adapt to new technologies and industry demands. Insufficient funding for skills development is also a persistent issue. While the government has increased investment in recent years, more resources are needed to modernize TVET institutions and expand access to quality training. The 'brain drain' – the emigration of skilled workers to other countries – further exacerbates the skills shortage.

Opportunities and Potential Solutions

Despite these challenges, there are opportunities to improve the situation. Strengthening public-private partnerships is crucial. The NSDA should be empowered to effectively facilitate collaboration between government, industry, and training providers. Curriculum development should be driven by industry needs, with employers actively involved in defining skills standards and learning outcomes. The government should invest in modernizing TVET institutions, providing them with state-of-the-art equipment and training facilities. Expanding access to apprenticeships, particularly for women and disadvantaged groups, is essential. Providing financial incentives to employers to offer apprenticeships can encourage greater participation. Promoting digital skills development is also critical, as digital literacy is increasingly important for all jobs. The Bangladesh Investment Development Authority (BIDA) could play a more proactive role in promoting skills development as part of its investment promotion strategy. Learning from international best practices, such as the German dual apprenticeship system, could also be beneficial.

Next Steps and Recommendations

The findings of the Skills Confidence Barometer should serve as a wake-up call for policymakers and businesses. Immediate steps should be taken to address the declining apprenticeship recruitment and restore confidence in the skills development system. The BEF and the ILO should continue to monitor the situation and provide regular updates to the government. A national skills summit, bringing together key stakeholders from government, industry, and academia, should be convened to develop a comprehensive action plan. The government should prioritize skills development in its national development plans and allocate sufficient resources to support TVET reform. Businesses should actively engage in skills development initiatives and invest in the training of their workforce. Ultimately, a collaborative effort is needed to ensure that Bangladesh has the skilled workforce it needs to achieve its economic aspirations.