Promises vs. Reality: Factory Closures and Mass Layoffs Mark First Six Months of Government

Dhaka Despite pre-election pledges promising substantial new employment, the new government faces severe economic pressure within its first six months in office. While campaign manifestos assured large-scale job creation, economic stagnation, energy shortages, and factory shutdowns have instead triggered a wave of job losses.

Speaking in the National Parliament, MP Rumin Farhana sharply criticized the government’s handling of the employment and economic situation. She highlighted that approximately 62,000 individuals have lost their jobs over the past six months, alongside the closure of nearly 900 factories and manufacturing units. Consequently, serious doubts have emerged over whether existing employment can be sustained, let alone achieving promised job targets.

Research Insights and Industrial Crisis A recent report by the Centre for Policy Dialogue (CPD), a private think tank, corroborates this industrial distress. According to CPD data, at least 95 major manufacturing units across various industrial belts closed within the last 6 to 7 months, directly displacing roughly 61,881 workers.

Factory owners and economic analysts attribute the sharp downturn to three key factors:

• Energy Shortages: Acute gas and electricity deficits have severely disrupted baseline manufacturing capacity.
• Declining Export Orders: Global economic headwinds and liquidity constraints have led to a noticeable drop in purchase orders.
• Slowing Credit Growth: Reduced private sector credit growth and cash-flow constraints have hindered operational stability.

Rising Public Concern and Economic Outlook The combined impact of employment instability and rising inflation has heightened public anxiety. During parliamentary debates, lawmakers questioned the execution of the government’s “180-Day Priority Program” amid ongoing energy disruptions and living cost pressures.

Economists emphasize that the immediate imperative for the administration is stabilizing existing employment and revitalizing shut units rather than focusing solely on new job targets. While official statements indicate plans to support factory reopenings, failure to execute rapid interventions risks deepening the broader economic strain.