Bangladesh’s labor productivity has declined over the past three decades, raising concerns among economists about the country’s ability to generate stable jobs and lift incomes. CEIC data shows annual labor productivity growth averaged minus 0.33 percent from December 1992 to December 2024. In December 2024, productivity fell 2.42 percent from a year earlier, underscoring the depth of the slowdown.
Economists say the long-term decline threatens Bangladesh’s efforts to strengthen living standards as it moves toward its post-least-developed-country transition. They point to slow technological adoption, limited industrial diversification and weak skills investment as factors holding back productivity gains.
Researchers warn that without meaningful improvement, wage growth could stall and households could face greater financial pressure. They argue that the latest figures highlight the need for stronger policies to support training, innovation and higher-value industries as Bangladesh works to expand opportunity for its workforce.