(C): X
The overseas labor market of the country was in the middle of an acute shrinkage as Dhaka entered the market in early 2026. Official data reveals a sharp outbound labour dip, with worker deployment falling by over 21% in January 2026 compared to the previous month. Though December 2025 was a record, the abrupt downturn because of seasonal changes and stricter regulations in major markets such as Malaysia have sounded alarms. Concurrently, while December brought in robust foreign currency, economists warn of looming remittance pressure. This may overstretch any future inflows as the ability to continue high levels of migration becomes unable due to the effect on the reserves that have been able to stabilize the economy in late 2025.
The sudden 21% decline in January is not merely statistical; it signals structural hurdles for migrant workers. The first is the limited access to the Malaysian market, whose quotas have been reduced to much less (estimated to be 30,00040,000) in 2026. This tightening compels aspirants to seek other destinations, which are usually costly such as Saudi Arabia, which strain families further.
Despite a record $3.2 billion inflow in late 2025, remittance pressure is mounting. That is obvious because the fewer the workers go today, the fewer money they will send home tomorrow. This volatility has triggered a scramble by policymakers to diversify the labour markets in non Middle East countries to cushion them against this volatility so as to shield the foreign exchange reserves against fading away in the next quarters.
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