Bangladesh is witnessing a significant rise in employment through battery-powered autorickshaws, a trend that reflects deeper challenges within its formal economy. As of 2024, approximately 1.16 million people are estimated to be engaged in this sector nationwide, according to the Bangladesh Labour Force Survey. This mode of transport has emerged as a major source of income, particularly for young workers and those with prior skills who have been unable to find formal jobs.
The popularity of battery rickshaws stems in part from stagnant job growth in traditional sectors. Unemployment reached 4.63% in the final quarter of 2024, the highest level recorded in over two decades. Over the previous year, employment shrank by about 3 million people, with nearly nine hundred thousand unemployed young graduates, the highest rate among education groups. Despite manufacturing growth averaging 9.1% annually between 2018 and 2022, employment in factories declined by 9.6% over the same period, illustrating the disconnect between economic growth and job creation.
The battery rickshaw sector offers an accessible avenue for self-employment. Drivers need no formal hiring process, specialized training, or factory infrastructure, which contrasts with formal jobs and suits those leaving rural areas or shifting from other trades. Many drivers come from diverse backgrounds: former farmers, salaried workers, garment factory employees, and tradespeople such as electricians and tailors who have transitioned to battery rickshaw driving due to the scarcity of alternative work. One driver noted that despite holding a degree and training in computer skills, the immediate daily earnings of around Tk30,000 from driving an autorickshaw were more attainable than pursuing overseas migration or formal employment.
However, experts caution that while this sector provides income, it may not offer sustainable career development or skill advancement. Because work is often informal and self-directed, drivers do not gain skills transferrable to other industries, leaving many with limited upward mobility. Safety is also a concern; surveys report that battery rickshaws have higher accident rates compared to pedal rickshaws. Additionally, rapid fleet expansion has depressed earnings, with many drivers paying substantial daily rent to vehicle owners, leaving limited net income. This situation has knock-on effects on labor shortages and rising wages in rural farming communities.
Industry observers argue that banning battery rickshaws is neither practical nor effective, as past restrictions have been met with strong resistance. Instead, there is a growing call for formalizing the sector through vehicle registration, safety regulations, and linking drivers to affordable financing. Developing complementary industries, such as local battery manufacturing and maintenance services, could help transform what is currently a fallback occupation into a more structured industry offering skilled jobs.
The broader economic challenge remains raising manufacturing employment beyond the ready-made garment sector and diversifying job opportunities outside the capital, Dhaka. Experts suggest that creating jobs in district towns could relieve urban congestion and reduce migration pressures. Aligning skills training with market demands at home and abroad is also crucial to prevent a generation of workers being trapped in informal, low-skill employment.
Battery rickshaws have become a critical, if imperfect, safety valve for Bangladesh’s labor market. They provide immediate income and a degree of independence for millions of workers, including younger and better-educated individuals who might otherwise be unemployed. Yet without structural economic reforms and the development of pathways to more secure and skilled employment, this sector risks becoming a holding pattern rather than a solution for the country’s persistent job crisis.