Bangladesh’s readymade garment (RMG) sector is undergoing a “twin transformation” driven by automation and climate transition, reshaping production and jobs while raising concerns over inequality, a study found.
The study by South Asian Network on Economic Modeling (SANEM) and University of Dhaka researchers, based on a survey of 100 factory owners, shows 95 per cent of factories adopted automated cutting or sewing technologies in the past two years.
Productivity gains drove the shift, cited by 97 per cent of respondents, while 86 per cent said automation was needed to meet international buyer demands.
While efficiency is improving, employment patterns are shifting.
About 10.2 per cent of female workers reported fears of job loss due to automation, alongside rising work pressure from faster production cycles.
The report shows widening gender inequality in the sector’s structure, where women remain concentrated in lower-level roles such as machine operators and are largely absent from senior positions.
At Level 5 management, 98.6 per cent are men, while women account for only 0.08 per cent, highlighting limited upward mobility.
Wage gaps persist as women receive lower returns to experience than men, linked to lower educational attainment and limited access to technical and supervisory training.
Factories are also adapting to climate requirements. About 76 per cent installed water-efficient machinery and introduced water tracking systems to meet sustainability standards.
High costs remain a key barrier, with 62 per cent of factories citing installation expenses as the main constraint to adopting green technologies.
Employers are seeking policy support, with 83 per cent calling for low-interest loans, alongside demands for tax incentives and technical assistance.
The study warns that without targeted policy action, the combined impact of automation and climate transition could deepen inequality even as the sector becomes more competitive and environmentally compliant.
It recommends gender-responsive skill development to enable women to access higher-skilled roles and inclusive technology upgrading to prevent disproportionate job displacement.
The report also calls for stronger social protection, noting most workers lack pensions and adequate safety nets.
It said coordinated action among the government, industry, and development partners will be needed to ensure the sector’s transformation remains economically sustainable and socially inclusive.
