Bangladesh is facing a critical challenge as thousands of skilled development professionals lose their jobs following significant USAID funding cuts. On January 20, 2025, the US government paused USAID grants globally for a 90-day review. Since USAID previously accounted for nearly half of all development funding worldwide, the impact has been severe. Many NGOs, both directly and indirectly supported by USAID, have laid off or furloughed staff. By March 2025, thousands of Bangladeshi professionalsโspecialised in healthcare, education, human rights, and climate changeโreceived redundancy notices. Estimates suggest between 30,000 to 40,000 workers in the development sector in Bangladesh may have been affected, although exact figures remain uncertain. These professionals represent a wealth of knowledge and expertise that Bangladesh urgently needs as it navigates a path toward economic growth. While the job losses are deeply troubling, they also present a unique opportunity. Rather than allowing this talent pool to go unused, Bangladesh can strategically redeploy it to boost national development. Encouraging signs already exist. The 2025 Bangladesh Investment Summit showcased how attractive the country has become for investors. The World Bankโs $850 million loan package is expected to create employment and improve trade capacity. The Chattogram National Special Economic Zone could provide up to 800,000 new jobs. Additionally, the latest Bangladesh Country Private Sector Diagnostic report identifies major job creation possibilities. Annual job creation in construction could reach 2.37 million if housing development is expanded. Paint and dye production could add 664,000 formal jobs, while reforms in digital financial services could result in 96,000 to 460,000 jobs. To capitalise on these prospects, the government must act. A comprehensive survey should first identify the full extent of job losses and their economic impact. This data will be vital for designing targeted reintegration policies. A national talent retention strategy could guide professionals into emerging industries such as renewable energy, green manufacturing, and IT. Public-private partnerships could encourage businesses to hire displaced workers by offering tax incentives or grants. Simplifying business regulations could also help generate new jobs quickly. Reskilling initiatives are essential. Collaborating with industries to provide focused training can bridge skill gaps and ease transitions. Support for entrepreneurship is another promising avenue. With seed funding, mentoring, and access to markets, many former development workers could launch ventures in agriculture, e-commerce, or digital services. Bangladeshโs future growth hinges on strategic thinking. By transforming this crisis into an opportunity, the government can ensure these skilled professionals contribute to building a stronger, more resilient economy. Swift, inclusive action is essential to prevent long-term harm and unlock the nationโs full potential.
