Over a million clothing workers in Bangladesh have lost their jobs as Covid-19 brings the textile industry to a standstill

Clothing workers in Bangladesh, the South Asian country which is only second place to China in the global manufacturing of clothing, have been hit hard by the worldwide spread of Covid-19.  The plummeting demand for clothing items from global retailers, has forced manufacturers to lay-off or furlough over a million workers.

The clothing industry in Bangladesh is the largest source of export revenue for the country and employs over four million people. As more and more retailers cancel their orders, this has put unsustainable pressure on business owners.

According to the Bangladeshi Garment Manufacturers and Exporters Association (BGMEA), over US$3.02 billion of orders for export have been cancelled or suspended since the outbreak of the deadly coronavirus. Unable to cover their costs, this has resulted in around a quarter of all workers in the industry losing their jobs.

Bangladesh is already one of the poorest countries in the world, with just over 20% of the population living below the poverty line in 2019.  As most workers in the clothing industry are on extremely low wages already, a total loss of income for those who are laid off from their jobs, could mean they are pushed, along with their families, into extreme poverty.

The Bangladeshi government has announced a US$588 million stimulus to support the clothing industry, but with over a quarter of workers already laid off, it could be little too late, or simply too little to make an impact. With US$6 billion expected to be lost in export revenue, it doesn’t take a gifted mathematician to see that the numbers don’t quite add up!