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Huge employment must for GDP growth

Published : 17 Jun 2020 10:13 PM | Updated : 06 Sep 2020 11:23 PM

The government should ensure job security and create huge employment in the private sector to achieve 8.2 percent Gross Domestic Product (GDP) growth rate in fiscal 2020-21, say experts.

They opine the country's overall businesses have seriously been affected due to the coronavirus pandemic.
Most of the organizations are fighting to sustain themselves as they are facing huge losses during the crisis, they added.
As a result, many businesses have crumpled in several months as they cannot bear the losses further, which in turn, has created huge unemployment.

In the last two months, a total of 338 RMG factories have shut due to the corona crisis, according to BGMEA.
On the other hand, large numbers of workers are being terminated in many sectors including RMG, restaurant and transportation.
Economists opined if the government cannot ensure job security for employees, the big GDP growth target will not be achieved.

Chairman and CEO of Pran-RFL Group Ahsan Khan Chowdhury said, “The income of construction workers, rickshaw pullers, restaurant workers, vendors and informal sector workers has significantly declined due to the coronavirus outbreak.”
On the other hand, many employees in different sectors have lost their jobs during the crisis, he added.

As a result, consumer spending has come down, which will create a negative impact on the country’s economy, he mentioned.
In order to achieve the 8.2 percent growth target set for the next financial year, the government should spend more to create employment to recover economic losses, he said.

Dr Mohammad Mahfuz Kabir, research director at Bangladesh Institute of International and Strategic Studies (BIISS), said the overall budget deficit will be Tk 190,000 crore in the next fiscal, which is 6 percent of the GDP.

“I think the deficit is not bad for implementation of mega projects and creating employment. Many Bangladeshi migrant workers who returned home can’t go back to the countries of employment. So, the government must consider creating more jobs as a lot of people lost work during the lockdown,” he added.

Dr Mahfuz said the government should think how to attract foreign investment. More investments have to be there to tackle the economic impact.

Former BGMEA Vice President Md. Shahidullah Azim said many factories have stopped due to many owners of the organizations, which has created huge unemployment.

The government should make some allocation to save industry, but we cannot see it in the budget for FY 2020-21, he said adding that the government should focus on creating huge employment by providing many support to the industry sector.

Renowned economist Zahid Hussain told Bangladesh Post, “Most of the unskilled workers of Bangladesh who work in the Middle Eastern countries fear losing jobs as many companies have temporarily closed while many small businessmen are passing a critical time for the pandemic.

Many expatriates have returned home while some new visa holders cannot go abroad for lockdown in most countries which may create a negative situation in the economy, Hussain said.

In this situation, the government should give proper training and financial support to them to build their own businesses, which will also help to create employment, he added.