Awami League President former Prime Minister Sheikh Hasina has raised alarm over a significant economic downturn in Bangladesh, citing widespread industrial closures, job losses, and rising poverty following the political transition of August 2024.
In a statement issued on May 1 to mark International Labour Day, Hasina said that the economic gains achieved during her government’s tenure had been severely disrupted. The message, shared publicly by the Bangladesh Awami League, highlighted concerns over declining industrial output and worsening conditions for workers.
“It is with regret that I say the momentum we built in industry and agriculture over one and a half decades has been disrupted after August 5, 2024,” Hasina said in her Labour Day message released in Dhaka. “Due to the retaliatory actions of the unelected Yunus government, thousands of factories, including garment industries, have been shut down. Within just one year, 2.1 million workers lost their jobs.”
Her remarks come amid ongoing debate over the economic and political trajectory of Bangladesh under the interim administration led by Muhammad Yunus, which assumed power following widespread unrest in 2024.
Economic concerns and job losses
Hasina further claimed that the ripple effects of factory closures have pushed millions into poverty. “By September 2025, 3 million people had fallen into extreme poverty. This trend of crisis continues,” she added, emphasizing what she described as a prolonged economic downturn.
Independent economists and international observers have also noted signs of strain in Bangladesh’s export-driven economy, particularly in the ready-made garment sector, which accounts for the bulk of the country’s foreign earnings. Disruptions in production, supply chains, and investor confidence have been cited as contributing factors, though precise figures remain contested.
Legacy of labour reforms
Reflecting on her administration’s record, Hasina pointed to a series of labor and social protection policies introduced during her time in office. These included the Bangladesh Labour (Amendment) Act 2018 and the National Labour Policy 2012, among others, aimed at strengthening worker protections and improving workplace conditions.
She also invoked the legacy of Sheikh Mujibur Rahman, saying his lifelong commitment to workers’ rights had guided policy decisions during her government. According to Hasina, these reforms helped position Bangladesh as a stable and emerging economy over the past decade.
Broader political and human rights context
The Labour Day message comes against the backdrop of a deeply polarized political landscape. Since the ouster of Hasina’s government on August 5, 2024, Bangladesh has been governed by an interim administration backed by the military and supported by Islamist factions, according to critics.
Rights organizations have reported widespread violence and political reprisals during the transition period. Civil society groups, including Ain o Salish Kendra, documented hundreds of deaths in early August 2024, while minority advocacy groups reported thousands of incidents of targeted violence.
Journalists, academics, and political activists have also faced mounting pressure, including arrests, dismissals, and restrictions on access, raising concerns about democratic backsliding and governance challenges.
Call for economic recovery
In her closing remarks, Hasina warned that sustained industrial decline could further undermine national development. “No country can progress by shutting down industries, destroying employment, and undermining farmers,” she said, addressing the nation on the significance of May Day.
She concluded with a message of resilience and political commitment: “On this historic day, I remind you that the Awami League has always stood by the rights, interests, and welfare of working people. We will certainly overcome this dark period and bring Bangladesh’s economy back onto the path of development.”
Analysts note that the coming months will be critical for Bangladesh’s economic recovery, as policymakers face mounting pressure to stabilize industries, restore investor confidence, and address rising unemployment in one of South Asia’s most densely populated economies.
