Money exchange sector Booms, but workers' share shrinks: BBS

Bangladesh's money exchange sector recorded a powerful surge in business and profits over the past fiscal year, driven largely by high-velocity US dollar trading. However, despite rising revenues, regular workers are getting a smaller piece of the financial pie as owners retain the bulk of the profits.

According to recent Bangladesh Bureau of Statistics (BBS) data, the sector's Gross Value Added (GVA) jumped to Tk9 crore 97.3 lakh in the 2023-24 fiscal year, up from Tk8 crore 14.3 lakh the previous year. The US dollar remained the primary engine of this growth, consistently fuelling roughly 74% of the sector's total trade margin.

Yet, this macroeconomic success did not trickle down to everyday staff. The annual labour share of the value generated fell sharply from 67.62% to 61.58%, dipping to a low of 55.24% in the second quarter.

This information was revealed in a report titled Case studies on five strategic economies activity in Bangladesh. BBS released the report today (2 July).

While expenditures on regular employee salaries saw only minor adjustments, financial payouts to working owners spiked significantly to over Tk2 crore. Experts note that while the sector demonstrates strong financial resilience amid ongoing currency demands, the shrinking labour share highlights a widening gap between corporate capital retention and competitive wage growth for ordinary workers.

Art, entertainment sector shows stable growth

A recent establishment-based case study by the Bangladesh Bureau of Statistics (BBS) highlights steady growth and evolving employment dynamics in the country's art and entertainment sector.

The study, covering 318 establishments, found that government ownership dominates the sector at 27.36%, followed by other categories (25.16%) and sole proprietorships (23.58%). Private limited companies accounted for the smallest share at just 1.89%.

In terms of leadership, the sector remains heavily male-dominated, with 90.25% of establishments headed by men, compared to only 9.75% led by women.

Employment levels remained largely stable over the two fiscal years. Average quarterly employment stood at 6,192 in 2022-23, increasing slightly to 6,292 in 2023-24. Regular paid employees formed the largest workforce segment, followed by volunteers and contract-based workers.

However, employment costs saw a notable rise. Total quarterly costs increased from Tk19 crore 17 lakh in 2022-23 to Tk21 crore 29 lakh in 2023-24. Regular employees accounted for the bulk of expenses, while remuneration for working owners nearly doubled, indicating improved earnings within the sector.

The sector's total value added also showed consistency. Gross Value Added (GVA) rose slightly from Tk100 crore in 2022-23 to Tk100.89 crore in 2023-24, driven mainly by labour compensation and capital consumption.

Significantly, the labour share of value added increased from 76.65% to 84.43%, suggesting a shift toward more equitable income distribution. This indicates that workers are receiving a larger portion of the economic output, possibly due to rising wages and improved employment conditions.

Overall, the findings point to a stable and gradually improving art and entertainment sector, with stronger labour participation and increasing financial commitment to human resources.

Courier sector records steady growth in jobs and turnover

Bangladesh's courier service sector has witnessed steady growth in employment, turnover, and efficiency over the past two fiscal years, according to a recent study based on 138 establishments.

Employment rose from 4,973 in the first quarter of FY2022-23 to 5,827 in the fourth quarter, and further to 6,580 by the end of FY2023-24. Regular salaried workers made up the majority of the workforce.

Total turnover increased from Tk217.7 crore in FY2022-23 to Tk236.69 crore in FY2023-24, with over 90% of revenue generated from core courier services such as parcel and document delivery.

Gross Value Added (GVA) also grew from Tk169.98 crore to Tk188.53 crore, while operational efficiency improved, reflected in a higher GVA-to-output ratio of 79.65%.

The study noted that fuel remains the largest operational cost, accounting for about 45% of total expenses, highlighting the sector's strong dependence on transportation.