The absence of credible and digitised employment database and a lack of appropriate legal provisions and regulatory frameworks are among the major challenges to promote jobless-protection measures in Bangladesh.
These are the findings of an ILO working paper on 'Towards Improved Unemployment Protection in Bangladesh: A Preliminary Feasibility Assessment', presented at a consultation meeting held at a city hotel on Thursday.
According to the paper, the absence of well-coordinated skills development programmes, limited institutional capacities of labour market implementing agencies, and social dialogue and proper knowledge on international standards in unemployment protection measures, also hinder initiation of such safeguard measures.
While presenting the findings, Dr MA Razzaque, chairman of Research and Policy Integration for Development (RAPID), said, "Bangladesh needs to develop a concrete roadmap with clear and pragmatic goals to initiate unemployment insurance."
The incidence of labour market informality to a massive extent - 85 per cent of the country's jobs are in the informal sector - makes it difficult to provide unemployment protection measures, implement provisions of the labour act, and make progress towards the agenda of decent work, he said.
Lengthy procedures, lenient punitive measures for violation of labour laws and weak enforcement of the available provisions are responsible for not providing effective legal protection to workers facing employment termination, he noted.
The provision of unemployment protection is a combination of policies and measures, aiming to guarantee a certain standard of living for the workers, especially in the event of job loss until they return to work, support them to increase their employability, and search for new jobs.
The presence of such protection measures can work as a shield for the workers against the undesired consequences arising from enterprise restructuring, economic transformations, technological advancements, and environmental and climate changes, natural calamities, etc.
Covid-19 demonstrated a major limitation in the prevailing social security system that did not offer much support to the workers who became suddenly unemployed, Mr Razzaque noted.
The National Social Security Strategy (NSS) of Bangladesh, adopted in 2015, duly recognised the gaps in support provision for the working-age population and, amongst others, recommended exploring the possibilities for establishing a National Social Insurance Scheme (NSIS) including a component of unemployment insurance (UI).
"However, the progress towards implementing the scheme has rather been limited," he said, explaining that many essential prerequisites for introducing the NSIS such as active labour market policies, social dialogue, legal framework were not yet fully developed for supporting an Ul scheme.
In addition, the social security standards enshrined in various ILO conventions and recommendations, and globally acclaimed best practices in setting up unemployment protection measures are least understood in the country, he observed.
In this background, the ILO conducted a detailed preliminary feasibility assessment of an Unemployment Insurance in Bangladesh, in partnership with the European Union DG INTPA (Directorate-General for International Partnerships, European Commission).
This preliminary feasibility assessment is expected to help design a framework of an Unemployment Insurance Scheme contributing to the roadmap by the Bangladesh government submitted to the ILO Governing Body and second Phase Action Plan of National Social Security Strategy (NSSS).
Thursday's event was organised to present the preliminary feasibility assessment and roadmap for further development of 'Unemployment Insurance' in Bangladesh.
Speaking at the event, ILO Bangladesh Country Director Tuomo Poutiainen highlighted ILO's approach to improved social protection for workers in Bangladesh.
He mentioned that unemployment insurance was very important particularly in crises like the Covid-19 pandemic and expressed commitment to protect Bangladeshi Workers in event of sudden unemployment and requested support from the government, employers, workers, and donors.
Highlighting the government's similar ongoing programmes for export oriented readymade garment and leather sectors, Labour Secretary Md Ehsan-E-Elahi said these schemes could pave the way for the government to put in place a UI Scheme soon.
Speaking at the event, Head of Cooperation (Acting) European Union Koen Everaert said the government and EU were already implementing an Unemployment Protection programme to protect workers in the aftermath of Covid-19.
He emphasised on adopting an 'incremental' approach for new social protection schemes.
