Enhancing Remittance Potential through Targeted Skill Development for Bangladeshi Migrant Workers in GCC Countries

Abstract

Labor migration from Bangladesh, largely to the Gulf Cooperation Council (GCC) countries, plays a pivotal role in the national economy through remittance inflows. Nonetheless, the concentration of Bangladeshi workers in low skill occupations limit their earning potentials which reduce positive impact of remittance on national growth. This study ascertained the skills sought after in the GCC countries, skill gaps among Bangladeshi workers, and priority skills developmnet areas for increased wage and remittance inflows. Using a mixed-methods exploratory sequential design, the study combined qualitative insights from eight Key Informant Interviews (KIIs) with a structured survey of 300 Bangladeshi migrants employed in the service sector of GCC countries. Thematic analysis of the qualitative data identified key skill deficiencies among Bangladeshi workers and employers’ expectations, while quantitative analysis through correlation and multiple regression identified direct and indirect effects of various skills on wage outcomes. Technical training and work experience have been identified as the strongest predictors of wages, while language proficiency, ICT literacy, legal awareness, and soft skills play an enabling role by facilitating access to higher paying jobs. This study showed empirical evidence to the application of human capital theory in international labor migration, offering policy-relevant recommendations for aligning Bangladesh’s skill development infrastructure with labor market demands in destination countries. It highlights need for focused training programs to facilitate migrant workers’ employability, wage outcomes, and the broader economic impact of remittances.