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Labor Productivity in Bangladesh Garments Industry

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Golam Rabbani

Labor Productivity Explained

Labor Productivity indicates the hourly output. Particularly, it shows the real gross domestic product (GDP) resulted from an hour of labor. Labor Productivity is also familiar as workforce productivity. Labor Productivity can be improved. The growth in Labor Productivity is considered as the change in economic output per labor hour. But an individual output is not considered as Labor Productivity, rather then it is employee productivity. In Garments Labor Productivity is prepared, dividing the total output by the sum of total labor hours. If we consider Labor Productivity of previous year as P and Labor Productivity of recent year as F then the Growth in Labor Productivity(GLP) will be 100*{(F-P)/P} %. In some cases, Growth in Labor Productivity is considered as improved standards of living in a country.

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Chart: Labor Productivity based on GDP per hour worked in the World, source: statista

For countries like Bangladesh Labor Productivity is one of the most essential sections. Growth in Labor Productivity depends on three key factors which are savings and investment in physical capital, latest technology and human resources. Physical capital consists of tangible, human-made goods that assist in the process of creating a product or service. The machinery, buildings, office or warehouse supplies, vehicles, and computers that a company owns are all considered part of its physical capital. Latest technologies are newly invented technical support such as, Automation. This can be any method or, machineries that enhance the productivity rate.

Labor Productivity in Bangladesh and the Garments Industry

Garments sector in Bangladesh doesn’t have a great amount of technical support. Also the infrastructure is not actually highly adoptable. So, in all this three major factors we have only one which we have in great amount. It is our human resources. At present Garment is the most supportive industry in the economic growth of Bangladesh. This sector has rapidly developed as it is a labor intensive industry with ordinary technology and cheap labor. In Garments and Textile sector Labor Productivity is the factor that can control the profits and costs in production. High Labor Productivity presents higher approach in a business and raise in productivity level reduces garments manufacturing costs. And so, a factory can make more profits by improving production cost. With fewer expanses in skilled labor in Bangladesh’s Garments and Textile, the Labor Productivity can grow well. This will be very profitable in the RMG export. As we have seen, improving Labor Productivity means production of more garments in less time. So, this will enhance the production time. The products can be delivered easily before the deadline. It will represent an attractive image to the buyer.

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Chart: Labor Productivity per Hour in Bangladesh passes 6 for the first time, source: ceicdata

To enhance and improve Labor Productivity there are some unique and effective ideas. But at first, there are some facts that we must consider to raise Labor Productivity,

  • The input must be kept the same or, fewer and the production must be increased.
  • The input may remain same but output must be improved.
  • By adding more input and growing the rate of production.

There are a lot of factors that may change the rate of production per hour. By improving these factors we can easily control the growth in Labor Productivity. The factors can be sectioned in three separate segments,

  • Enhancing Physical Capital: The infrastructure of an industry must be appropriate to make a good production and specifically for the support of production methods. In Bangladesh we usually do not have well-developed machinery, building, office and other facilities for the workers and to support the best production rate. By improving the design of infrastructure and building it enough strong to hold the best plans of production we can make a growth in Labor Productivity.
  • Up to date Technical Support: Now-a-days technical support is one of the most important factor to grow in production per hour. The modern world is improvising day by day rapidly. To cope with it our textile industry must bring the latest technical support in the planning of production. The technology invents new ideas and better ways to advance the productivity. The industry should be acknowledged and bring them to reduce the time of production.
  • Skilled Human Resources: Developing the employee is one of the best ways to improvise Labor Productivity. By selecting efficient skilled worker can reduce the cost and time both very effectively. The workers can also be trained as of the planning of production. Some reward session can be added to grow more curiosity and daily attendance of workers.

 

Bangladesh has greater opportunities to improve the production level. Because, the country is developing day by day and the life of people changing dramatically. The country has professional, skilled and semi-skilled population and the number isn’t lowering at all. Where in other countries this advantage is very low. Through building good infrastructural support and adding more advanced technologies Bangladesh may go at the top of production level. RMG is the leading industrial sector in Bangladesh. With sales abroad estimated at 35.1 billion dollars in 2021. The sector employs approximately 1.5 million workers, mostly young women from underprivileged social classes. By attending proper trainings, this people can be turned into the most precious asset for the growth in labor production.

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