Changing Nature of work, Human Capital and Economic Growth of Bangladesh discusses how technology is changing the skills needed in the workforce. Workers now need skills like complex problem solving, teamwork, and adaptability. While machines have replaced humans in many jobs, technology has also created new jobs and increased productivity. Developing countries like Bangladesh face challenges catching up with these technological changes. Investing in human capital development through education, health access, and job training is critical for economic growth in Bangladesh. The country's human capital index score of 0.48 places it above neighbors like India and Pakistan but below smaller countries like Nepal. Strong human capital foundations are essential for countries to develop workforce skills and adapt to changes in the nature of work.

1. Changing Nature of work, Human Capital
and Economic Growth of Bangladesh
MD ASHRAFUL ALAM

2. Change is nature of job
The rise of automation and, more generally, IT-driven structural change in the labour market have made
policymakers and researchers worry about ‘disappearing jobs’ and a dire future for employment.
Technology is changing the skills that employers seek. Workers need to be better at complex problem-
solving, teamwork and adaptability.
-It once took weeks to send a letter across the country. Today it takes just seconds to send an e-mail. Just as
technology and communication have evolved, so too should the ways in which human resource
professionals approach how their employees work.
The trends include technological advancement, outsourcing, changing worker attitudes and values,
demographics and diversity, and globalization. The organizations that are going to be successful are those
that are nimble, embracing change isn’t just a necessity, it is a requirement.
Machines have now replaced human workers in numerous fields over the past 100 years. However, contrary
to apprehensions by many, technology has generated more jobs than it has dislodged till now.
By reducing the demand for routine tasks for workers, technology has also raised labor productivity in many
sectors. In the process, it has opened up avenues for newer ventures that were once only imagined in
science fiction

3. Cont.
New technologies are also utilized for enhancing efficiency in the management and operation of firms. Workers are
hired to produce parts in one location, which are assembled in another and then sold through yet another site.
Catching up with the technological change and globalization of jobs remain one of the formidable challenge for
Bangladesh.
AI, Automation, Machine Learning are also slowly but steadily making their way in the business practices which have
significant implication for new jobs. But sufficient efforts are not visible in terms of concerted investment in human
capital Development
Rapid technology changes, demographics, diversity, globalization, climate change, new production models and the
rise of the on-demand economy are just some of the structural shifts currently reshaping the world of work.
These new trends create challenges for our current labor laws, welfare schemes, education systems and tax regimes.
Labor markets need to evolve to ensure that they remain open, inclusive and sustainable – and enable everyone to
grow and prosper.
Policy-makers are responding to these vast challenges in several ways: securing lifelong learning, investing in better
employment services and updating social protection schemes to better accommodate more frequent work
transitions.
International organizations such as the International Labor Organization (ILO) and the Organization for Economic
Cooperation and Development (OECD) have developed specific initiatives around the Future of Work to research,
recommend and support the implementation of future proof employment policies.

4. Factors driving change in nature of Job
Technology. Smart devices that allow continuous connectivity continue to blur the line between work life and
personal life.
Outsourcing. Companies have come to define which work is critical and which work is not, organizations will
move in the future to outsourcing the noncore competencies of the workplace. Organizations now use more “free
agents,” who come in for projects and provide a specific expertise while improving their skill sets—then move on
to other organizations.
Changing worker attitudes and values. There was a time, when people remained in one job their entire lives.
According to the Bureau of Labor Statistics, a worker in the U.S. today has an organizational life expectancy of just
3.5 years.
Demographics and diversity. People are living longer and, for the first time ever, in the next 10 years, we will have
five generations in the workplace. We will have traditionalists, Boomers, Gen X, Gen Y, and Gen wireless. The
latest Gen includes people who grew up with technology in their hands—they understand it; they know how to
leverage those tools. Institutional knowledge is passed down and around—you end up in a mutual training
paradigm. That’s an amazing change in the way we’ve done this for thousands of years.
Globalization. Before it was bought by Oracle, Sun Microsystems had employees working in the U.S., India and
Europe around the clock on special projects. Now they get 24 hours of work time. This dispersion of work
geographically is the best possible way that work can get done.

5. Human capital and Bangladesh
Human capital is described as the skills, training, and health acquired through on the job training and
education. Michael Park defines it as, ''The skill and knowledge of human beings.'' It is also defined as
the "endowment of abilities to produce that exists in each human being.“
Human capital is the fundamental source of economic growth. It is a source of both increased
productivity and technological advancement. In fact, the major difference between the developed
and developing countries is the rate of progress in human capital. If the people of a country are well
educated, well nourished, skilled, and healthy, they are said to have more human capital
Investment in Human Capital Development (HCD) is critical for raising the human capital of any
country. Countries invest in HCD with an aim to increase programming skills, social abilities, ideals,
and health of their people. These investments aim to increase productivity.
Human capital formation is the act of increasing the productive qualities of the labor force by
providing more education and increasing the skills, health, and notarization level of the working
population.

6. Cont.
The primacy of human capital has been emphasized in this report for tackling a challenge that
defies simple and prescriptive remedies. Three kinds of skills have been identified as increasingly
important in today's labor markets:
cognitive skills like complex problem-solving;
socio-behavioural skills like teamwork and collaboration; and
 skill combinations facilitating adaptability like reasoning and self-efficacy. Strong human capital
foundations and life-long learning are considered essential for grooming these skills.
But most developing countries do not yet attach priority to early childhood development.
Consequently, the human capital outcomes of basic schooling in these countries are mostly sub-
optimal. For improving Human Capital investment in the below areas are critical:
Provision of health facilities which affect the life expectancy, strength, vigor, and vitality of the people
Provision of on the job training, which enhances the skill of the labor force
Arranging education at the primary, secondary, and higher levels
Study and extension programs for adults
Provision of adequate migration and resilience facilities for families to adjust to changing job
opportunities

7. Human Capital Index and Bangladesh
Human capital—the knowledge, skills, and health that people accumulate over their lives—has been a key factor behind
the sustained economic growth and poverty reduction rates of many countries in the 20th century, especially East Asia.
Bangladesh performed better than the South Asian average as well as the Lower Middle-Income average in all criteria
except for Stunting in the new HCI.
This year, the World Bank has presented for the first time a new human capital index (HCI), which highlights the link
between investments in human capital (health and education) and the productivity of the next generation of workers.
Bangladesh has been ranked 106th in the index out of a total 157 countries with a HCI score of 0.48. Bangladesh's score
is better than its big neighbours India (115th, with score of 0.44) and Pakistan (134th, with score of 0.39), but it trails
behind smaller South Asian states like Nepal (102nd, with score of 0.49) and Sri Lanka (74th, with score of 0.58).
The Human Capital Index measures the amount of human capital that a child born today can expect to attain by age 18,
given the risks of poor health and education that prevail in the country where he or she lives. The Index measures each
country’s distance to the frontier of complete education and full health for a child born today. The measure includes:
 Survival – Will children born today survive to school age?
 School – How much schooling will they complete and how much will they learn?
 Health – Will they leave school in good health, ready for further learning and/or work as adults?
the developing countries are now caught in the middle of rapid technological shifts that are causing radical changes in
the nature of work. They have no option but to invest more in human capital development in order to prepare their
citizens for the future challenges

8. Human Capital and Economic growth of
Bangladesh
Human capital constitutes a significant ingredient of economic growth. As more and more countries are moving
on the path of growth and development one needs to explore the contribution of human capital in economic
growth.
Human capital is positively correlated to economic growth since investment tends to boost productivity. The process of
educating a workforce is a type of investment, but instead of capital investment such as equipment, the investment is in
human capital.
 Human capital affects economic growth and can help to develop an economy by expanding the
knowledge and skills of its people.
 The level of economic growth driven by consumer spending and business investment determine the
amount of skilled labor needed.
 Investing in workers has had a track record of creating better employment conditions in economies
throughout the world.

9. Cont.
Role of Government
The role of governments is key to expanding the skillsets and education levels of a country's population.
Some governments are actively involved in improving human capital by offering higher education to people
at no cost. Workers with more education or better skills tend to have higher earnings, which, in turn,
increases economic growth through additional consumer spending.
The Corporate Sector's Role
Companies also invest in human capital to boost profits and productivity. For example, let's say an employee
working at a technology company receives training to be a computer programmer through on-site training
and in-house seminars. The company pays for a portion of the tuition for higher education.
Human Capital Investments and Employment Growth
Investing in workers has had a track record of creating better employment conditions in economies
throughout the world. If employment is improving, consumer spending rises, leading to increased revenue
for companies and additional business investment. As a result, employment is a key indicator or metric for
determining how GDP growth may perform.

10. Thank you