Majority of informal workers engaged in retail, agriculture, food, transport: Study

About 450 occupations in Bangladesh’s informal sector have been identified, with most workers found to be engaged in retail and sales, followed by agriculture and livestock, food and beverage services, transport, and crafts, according to a joint study.

The study, titled “Mapping of Informal Sector Workers in Bangladesh: Challenges, Opportunities, and Policy Implications,” surveyed 768 informal sector workers across all divisions of the country.

Conducted jointly by Karmojibi Nari and FES Bangladesh, the study found that the majority of informal workers (69 per cent) are between the ages of 25 and 44.

Most informal workers—73.3 per cent—are self-employed or run small businesses, while 21.7 per cent are employed on a contractual basis. Only a small portion is engaged in regular or family-based work.

Hafiza Begum, lead researcher at Adhuna Bangladesh Limited, presented the findings at a programme held in Dhaka on Monday.

The study highlighted key challenges facing informal workers, including the absence of guaranteed income, exposure to health risks, unsafe working conditions, and a lack of access to social security. Despite accounting for nearly 85 per cent of the country’s total workforce, informal workers are deprived of legal recognition, leaving them vulnerable to exploitation, disrespect, and harassment.

Income instability caused by seasonal employment and daily wage fluctuations is particularly acute in agriculture and street vending, the report said. It also noted that access to formal financial services remains limited, forcing workers to rely on informal loans and community savings.

Speaking at the event, Syed Sultan Uddin Ahmed, executive director of the Bangladesh Institute of Labour Studies (BILS), underscored the need to develop a database of informal workers to ensure social protection.

He stressed that formalisation of both enterprises and employment should proceed simultaneously, cautioning that formalising enterprises alone could create new problems. He further emphasised the importance of identifying risks within the informal sector, safeguarding citizens’ basic rights, and ensuring that workers’ demands are reflected in the election manifestos of candidates.

Mr Ahmed, a former chairman of the Labour Reform Commission, also recommended establishing a grievance mechanism to allow workers to lodge complaints.

Saifuzzaman Badsha, president of Jatiyo Sramik Jote Bangladesh, called for setting a national minimum wage for all workers and bringing the country’s 73 million informal workers under the provisions of the labour law by formally recognising them.

Speakers also urged the government to clearly define informal sector workers, extend legal recognition, create formal employment opportunities, ratify ILO Conventions 177, 188, 189, and 190, and implement ILO Recommendation 204 to facilitate the transition of workers from informal to formal employment.

FES Bangladesh resident representative Felix Gerdes; Department of Women Affairs director; Karmojibi Nari additional executive director Sunzida Sultana; and its vice president Umme Hassan Jholmol, among others, also spoke at the event.

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