Ten years ago, a majority of the women workers in Bangladesh worked in the informal sector. They were mostly unpaid and did not contribute directly to formal economic activities. However, the demographic structure of the labour participation in Bangladesh is witnessing a remarkable change. An increasing number of women are working in the formal sector as entrepreneurs and paid workers, a situation that was not seen in the past. This gradual transformation of women’s participation from the informal to the formal sectors has resulted in an upward mobility in the social and economic status of women, especially that of poor women in the country.

In order to gain an understanding of the current situation, it becomes important to trace the factors that are contributing towards a progressive transformation in the status of women in the country. Since the early 1990s, the growth of manufacturing industries provided women an opportunity to enter the formal labour market. A large number of rural women migrated to cities at a very young age, thereby reducing women labour in agriculture in rural areas. A new generation of women workers emerged in the country that was financially independent and lived alone in urban areas without male supervision.

Moreover, expansion of credit facilities gave women access to funds. Initially, women had access to less than one percent of the credit in the formal banking sector in Bangladesh. However, with the advent of the micro finance sector, many women had the opportunity to actively participate in income generating activities. Women, who mostly participated in non-farm activities and homestead farming, engaged in small-scale production, especially in rural areas. On an average, women earn 40% less than men in Bangladesh and have limited ownership over assets. Although there is a persistent problem of under-remuneration of women employed in formal sector activities, the potential of women’s economic contribution is slowing gaining recognition.

Along with the expansion of the manufacturing sector and credit facilities, the growth of the Non-Governmental Organisations (NGOs) has had a positive impact on women’s empowerment. A good number of NGOs engaged women not just in implementing development projects but also in the planning and designing stages. Women were actively involved in all stakeholder consultations. As a result, women’s role and participation in health and community development activities has been steadily increasing at the local level. At the same time, active participation in development projects has raised women’s awareness on their legal rights and benefits, which is also contributing towards their empowerment.

In 2009, women’s labour force participation rate stood at 31.5%, an increase of around 2% since 2005. During this period, although the participation of women in the labour force has increased by roughly 1 million as compared to 3 million of men, there is definitely a progressive change taking place. The changing role and status of women in Bangladesh today is characterized by increased opportunities.

A research study conducted by the Bangladesh Women Chamber of Commerce and Industry reveals that women entrepreneurs are more likely to hire other women. In addition to creating jobs opportunities for women, such a trend will result in an overall increase in the progress of women in the country. Greater participation of women in remunerative work will not only improve their living conditions but also improve their bargaining positions. Employed women will have better access to mainstream banking services which will help them to save and invest their income in tangible assets. 

Furthermore, formal sector employment opportunities for young women could reduce early marriages. Roughly 33% of women aged 15-49 in Bangladesh get married before the age of 15. Participation of young women in formal employment will not only prevent early marriages but also reduce fertility rates and health-related problems caused by early marriage.

Looking ahead, while access to labour markets is rising for women, capacity building services for women workers such as comprehensive training programs need to be developed alongside in the country. One of the important challenges faced by most women entrepreneurs is lack of access to market information. Therefore, supportive infrastructure such as information centres must be established to disseminate information on potential buyers, available technology and finance, which will make their business sustainable and profitable. 

Addressing such key challenges presents a strong prognosis for women’s employment in the long run, which will in turn result in greater empowerment of women and gradually eliminate social barriers in the country.