Migration cost soars as 52% of workers rely on brokers to go abroad: BBS

About 52.03% of international migrants paid their migration costs to brokers (migration facilitators), which is higher in rural areas (53.10%) compared to urban areas (48.25%), according to a recent survey by the Bangladesh Bureau of Statistics (BBS).

Migration experts noted that the involvement of middlemen or brokers in the labour migration process leads to high expenditures for poor workers.

The “Report on Socio-Economic and Demographic Survey 2023”, published on 5 June, underscored a widespread reliance on brokers for migration costs across most divisions, except for Rangpur, where private institutions received the highest percentage of migration expenses (54.87%).

Last year, more than 1.3 million workers went abroad.

However, the government has taken the initiative to regularise middlemen in order to control the high migration costs.

According to the survey, migrants from the Sylhet division predominantly used brokers for international migration (58.53%), followed by the Mymensingh division (57.44%). However, Barishal (28.83%) and Khulna (45.38%) exhibit comparatively lower rates of reliance on brokers.

The survey defines moving abroad for a job or residency as international migration. International migration is defined as individuals leaving their home country and remaining in the destination country for a minimum of six months.

Costs inflated by broker involvement

 Migration experts warn that middlemen significantly inflate costs for migrant workers, who are often from lower-income backgrounds.

According to the survey, 42.09% of the total number of migrants paid their migration costs to private companies/agencies, and 3.09% paid to government institutions. Additionally, 2.8% of people migrated with the help of relatives or friends.

Due to the strong desire to work abroad, some migrants become vulnerable to exploitation by brokers who inflate costs. Brokers often include friends and family, as people are hesitant to trust strangers with such significant amounts of money.

Asif Munier, a migration expert and ILO consultant

Talking to The Business Standard, Asif Munier, a migration expert and ILO consultant, pointed out that brokers often include friends and family, as people are hesitant to trust strangers with such significant amounts of money.

He highlights the fact that due to the strong desire to work abroad, some migrants become vulnerable to exploitation by brokers who inflate costs.

“The high migration costs arise because the money gets divided between various parties – brokers, agencies, and potentially even destination countries,” he explained.

Why workers use brokers

Munier touched upon a psychological factor: “Limited education and a lack of confidence, particularly among rural workers, can lead to an inferiority complex. They might feel they lack the skills to manage the migration process and rely on brokers initially, hoping to ‘figure it out later’.”

The survey reveals that most migrants (53.91%) attain an education level between class V and IX, with a majority relying on borrowing to cover migration costs. This is followed by SSC/Equivalent (18.96%) and HSC/Equivalent (10.75%).

The survey revealed that the highest percentage of migrants heading to Saudi Arabia (34.63%) spent between TK 4 and 5 lakh each. Similarly, a significant portion of migrants travelling to Malaysia (42.30%) and Bahrain (38.10%) incurred costs within the TK 3 to 4 lakh range. For those migrating to Italy, the majority (53.12%) faced costs exceeding TK 5 lakh per person. and also the highest 31.21% to the UK have a migration cost of more than Tk5 lakh for each.

Migration funding 

The survey revealed that 58.24% of migrants rely on borrowing to cover their migration costs. This dependence is slightly higher in rural areas (60.07%) compared to urban areas (51.83%).

There is a notable gender disparity in borrowing, with a higher percentage (58.74%) of male migrants resorting to borrowing compared to females (37.98%).

Notably, Barishal division has the highest borrowing rate (68.51%), while Sylhet has the lowest (46.37%).

The survey also found that the vast majority of migrants (except those going to the UK and Canada) seek employment opportunities. This is particularly evident in countries like Maldives (98.05%), Malaysia (96.86%), and Saudi Arabia (94.57%), where the demand for Bangladeshi workers is high. 

For female migrants, the survey highlights a trend toward domestic work, particularly in Kuwait (72.38%), Oman (55.22%), and Saudi Arabia (50.67%).

Brokers bringing under law

Middlemen in the overseas employment recruitment process are coming under a legal framework. The “Overseas Employment and Migrants (Amendment) Bill-2023,” passed last September, aims to bring these facilitators under a legal framework through a registration system.

Migration expert Asif Munier raised concerns about the effectiveness of the registration system. He suggests involving multiple ministries, ideally at the union level or through UNO offices, to facilitate easier registration.

Additionally, Munier proposed a robust online system to prevent brokers from charging excessive amounts of money.

Talking to TBS, Dr Syeda Rozana Rashid, a migration expert and professor of international relations at Dhaka University, emphasised the importance of empowering migrants through skill development to enable them to pursue overseas opportunities independently and avoid exploitation in low-skilled jobs.