Labour Unrest

A wage rise can lift worker health and productivity—what Adam Smith identified as the true source of the wealth of nations. Higher pay levels should also ease demand constraints in the economy. In a war-hit context, such a growth impulse would be valuable.

Wages have been stagnant, with real earnings in 2022-23 still below 2011-12 levels. Contract workers are often denied basic labour protections. Lower wage bills may serve industry, but a poorly paid workforce weakens overall demand and drags GDP growth down.

For all her flaws, Prime Minister Sheikh Hasina may be preferable to the alternatives—including hardened Islamists eager to gain power.