Bangladesh garment industry mass layoffs

Bangladesh's garment industry, which accounts for about 80% of the country's export earnings and employs over 4.5 million people, is experiencing a severe downturn. About 400 of roughly 4,000 apparel factories have shut down over the past two years, eliminating tens of thousands of jobs. In a recent wave, Lithe Garments laid off 3,000 workers, including Mosammat Aklima, who had worked there for eight years. The industry faces slowing exports, weak consumer demand, and stiff competition from India and Vietnam, which have gained ground in Europe through free-trade agreements. Bangladesh is set to lose duty-free preferential market access in Europe and other countries when its least-developed country status expires in 2029, potentially worsening competitiveness. European Union apparel imports fell in the first five months of the year, with Bangladesh recording the sharpest decline among major suppliers. Experts also cite structural weaknesses, including a focus on low-margin basic products, reliance on imported cotton, limited research, and slow adoption of automation compared to rivals like Vietnam. Labour advocates call for integrated government policy to manage the transition, while the government focuses on training workers. Workers like Begum struggle to find new jobs despite experience.