What's Happening?
The interim government of Bangladesh has approved over 250 new recruiting licenses, increasing the total number of agencies to 2,646, despite a shrinking overseas labor market. This decision follows a government white
paper that identified the unchecked expansion of recruiting agencies as a major structural weakness in the country's labor migration sector. The number of licensed recruiting agencies has risen significantly from 923 in 2015 to nearly 2,500 by 2023, driven by political patronage and weak oversight. Migration experts argue that the number of agencies far exceeds market demand, particularly as Bangladesh's overseas labor market is contracting. The country remains heavily reliant on Middle Eastern destinations, with more than 9 lakh workers migrating there in 2025, even as key markets like Oman, Malaysia, and Bahrain remain closed.
Why It's Important?
The expansion of recruiting agencies in Bangladesh poses significant risks to the labor migration sector, potentially leading to increased corruption and market instability. The excessive number of agencies fuels illegal practices such as visa trading, which drives up migration costs for workers. This situation undermines governance and accountability, as the licensing process is reportedly subject to systemic abuse. The government's contradictory approach of approving new licenses while canceling others further complicates the issue. Without reform, the sector faces escalating risks, impacting both workers and governance. The situation highlights the need for stricter monitoring, accountability, and a transparent ranking-based system to ensure fair competition and reduce migration costs.
What's Next?
Experts recommend reducing the number of recruiting agencies through a systematic process, including revoking licenses held by a single family and confiscating those involved in fraud. The government is urged to focus on developing systems and opening new markets to make the sector more competitive and efficient. Without these reforms, the labor migration sector in Bangladesh may continue to face challenges, affecting the country's economic stability and the welfare of its migrant workers.
