TBS
Highlights
- A government white paper flagged unchecked agency growth as a key weakness in labour migration.
- The interim government approved 250+ new recruiting licences.
- Experts warn of higher migration costs for workers.
- Concerns raised over increased corruption.
- Risk of market saturation and instability.
- Weak regulation could harm migrant workers’ rights.
Despite a government white paper identifying the unchecked growth of recruiting agencies during last regime as a major structural weakness in Bangladesh’s labour migration sector, the interim government has approved more than 250 new recruiting licences—raising fresh concerns among migration experts about rising costs, corruption, and market instability.
The White Paper on the State of the Bangladesh Economy, published in late 2024, identified the unprecedented expansion of recruiting agencies during the Sheikh Hasina regime as a key challenge. According to the document, the number of licensed recruiting agencies surged from 923 in 2015 to around 2,500 by 2023, driven largely by political patronage, weak regulation, and corruption.
However, instead of reversing that trend, the interim government has continued the same trajectory. On 4 November last year, the Bureau of Manpower, Employment and Training (BMET) approved 252 new recruiting licences, increasing the total number to 2,646.
Migration experts argue that the current number of recruiting agencies far exceeds market demand and that issuing new licences will further destabilise the sector—particularly at a time when Bangladesh’s overseas labour market is shrinking.
To put Bangladesh’s situation into regional perspective, neighbouring labour-sending countries operate with far fewer recruiting agencies relative to market size and governance structures.
Nepal has around 416 licensed agencies, Sri Lanka 248, Myanmar about 600, India around 192 registered recruiters, while Pakistan—despite a comparable Middle East–focused market—has just over 464 licensed overseas employment promoters, highlighting concerns that Bangladesh’s 2,646 agencies may be disproportionately high for its shrinking labour market, according to Refugee and Migratory Movement Research Unit (RMMRU).
“In 2025, the licences of 188 recruiting agencies were cancelled and those of 191 agencies were suspended. However, in the same year, applications for licences of 252 new recruiting agencies were approved. This counters the stated goal of reducing the number of recruiting agencies,” RMMRU mentioned in its annual report on labour migration 2025.
Experts warn that excessive competition among agencies fuels illegal visa trading, especially in the Middle East-centric labour market, which in turn drives up migration costs. Officially, migration costs are fixed by the government, yet in reality Bangladeshi workers often pay three to four times higher.
Dr Tasneem Siddiqui, founding chair of the (RMMRU), said the interim government’s decision cannot be described as prudent or forward-looking.
“Increasing the number of recruiting agencies does not reduce migration costs. Instead, the government should have cancelled licences of agencies involved in corruption, irregularities, and syndication and brought them under strict accountability,” she told The Business Standard.
She added that realistically Bangladesh needs no more than 500 to 800 recruiting agencies.
“Yet what we see is a contradictory policy—on one hand, some licences are cancelled, and on the other, nearly 200 new licences are issued. This dual approach has weakened the entire governance system and made accountability impossible,” added Tasneem who was the member of the white paper committee.
Shrinking labour market, growing agencies
Bangladesh’s labour market is overwhelmingly dependent on the Middle East. To secure job demand letters, many agencies resort to illegal visa trading, which is the single biggest reason behind high migration costs, say the sector insiders.
The more agencies there are, the fiercer the competition becomes, and the higher the price of visas—ultimately pushing up costs for workers.
Most agencies, experts note, show little interest in sending workers to developed countries due to stricter compliance requirements, leaving the market overly concentrated and vulnerable to malpractice.
In 2025, Bangladesh sent around 11.25 lakh workers abroad, more than 9 lakh of them to Middle Eastern countries, particularly Saudi Arabia. Major markets such as Oman, Malaysia, and Bahrain remain closed to Bangladeshi workers.
“At a time when the labour market is shrinking, increasing the number of recruiting agencies is the opposite of what is needed,” migration expert Dr Mohammad Jalal Uddin Sikder, Associate Professor at North South University told TBS.
“What we need is strong monitoring, accountability, and a ranking-based system. Otherwise, the migration sector will face even greater risks,” he added.
Concerns over background of new licensees
Sources within the Bangladesh Association of International Recruiting Agencies (BAIRA) claim that a significant number of newly licensed agency owners previously worked abroad as migrant workers and were involved in visa trading before entering the recruiting business.
“This will make the situation even more complex,” a BAIRA source said, requesting anonymity.
Migration expert Dr Mohammad Jalal Uddin Sikder, said the surge in recruiting agencies reflects deep structural weaknesses in governance.
“In a free labour market, no one can be forcibly restricted from doing business. But worker protection and market regulation are equally important,” he said. “Countries like Bangladesh and Nepal operate in relatively small and limited international labour markets. There is no justification for such a large number of recruiting agencies.”
He further alleged widespread abuse of the licensing system.
“In many cases, one individual controls multiple licences – under their own name, relatives’ names, or associates’ names – so that if one licence is cancelled, business continues through another. On paper, the number of agencies increases, but the actual number of owners remains far lower.”
In its annual report, RMMRU recommended that the number of licensed recruiting agencies be reduced through a systematic approach. They suggested confiscating licenses if a single family holds multiple licenses and revoking licenses of those who engage in fraudulent practices during the recruitment process.
Dr Sikder emphasised that a strict and transparent ranking system could automatically weed out unethical and inefficient agencies.
“In countries like India, despite a much larger labour market, the number of recruiting agencies is limited because only those providing quality services survive. Bangladesh urgently needs a similar system.”
Hasina regime and the mushrooming of agencies
Under the 2019 Recruiting Agencies Rules, BMET is responsible for issuing, renewing, and suspending licences. From 1976 to 2015, the government issued licences to 935 agencies, averaging 20–30 new licences per year, while cancelling errant ones.
However, between 2018 and 2023, 1,185 new licences were issued, including 800 licences in just 2022 and 2023 alone.
The white paper noted that transparency eroded as politically influential recruiting agents used their parliamentary positions to shape policies in their favour, bypassing fair competition.
BMET and ministry response
A senior BMET official told TBS that licensing decisions are made at the ministry level.
“We verify eligibility and forward applications to the ministry. The final approval list comes from there.”
BMET sources said more than 400 applications had been pending for nearly three years, of which 252 were approved. Under current rules, each approved agency must deposit Tk35 lakh along with additional fees of around Tk4 lakh.
“If approvals were denied, applicants would face significant financial losses after investing large sums,” said an employment division official, adding that the ministry would need to formally suspend new applications if it truly wanted to cap agency numbers.
Former BAIRA secretary general Shamim Ahmed Chowdhury Noman defended the decision, saying most new approvals were applications submitted during the previous regime.
“I don’t see a problem with new licences if agencies can explore new markets,” he said. “The government should focus on policy and system development. Currently, several key markets are controlled by BOESL or a handful of private agencies. These issues need urgent attention.”
Attempts to reach Expatriates’ Welfare Adviser Asif Nazrul and Senior Secretary Dr Neyamat Ullah Bhuiyan were unsuccessful. However, a ministry official, speaking on condition of anonymity, said the licences were granted to make the sector “more competitive and efficient.”
Source: https://www.tbsnews.net/bangladesh/shrinking-labour-market-growing-recruiting-agencies-despite-white-papers-red-flag
