Europe emerges as major destination for Nepali workers as Gulf uncertainties grow

Nepal's labor migration patterns are undergoing a significant structural shift, with Europe emerging as a major destination for jobseekers. In the first 11 months of the fiscal year 2025-26, a total of 53,951 Nepali workers received new labor approvals for 24 European nations. This marks a substantial increase, with Europe now accounting for 14.7 percent of the total outbound Nepali workforce, up from 8.69 percent in the previous fiscal year. Notably, 12,482 of these workers were women.

This diversification occurs as geopolitical tensions in West Asia raise concerns about the long-term stability of traditional labor hubs. While Gulf countries still absorb 55.4 percent of Nepali workers and Malaysia accounts for 15.9 percent, Europe's growing share signifies a strategic pivot. Data from the Department of Foreign Employment indicates that 367,000 Nepalis left for 160 countries under newly issued labor permits between mid-July 2025 and mid-June 2026.

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Nepal and Romania have already signed a bilateral labour agreement, and preparations are underway for its full implementation. Currently, Nepalis constitute the largest community of foreign workers in Romania.

Romania stands out as the primary European destination, attracting 24,767 Nepali workers, including 3,144 women. This figure represents approximately 46 percent of all Nepalis migrating to Europe during this period. Sagar Phuyal, Nepal's acting Ambassador to Germany, who also oversees relations with Romania, highlighted the Eastern European nation's attractiveness, especially after joining the Schengen Area. "Nepal and Romania have already signed a bilateral labour agreement, and preparations are underway for its full implementation," Phuyal said. "Currently, Nepalis constitute the largest community of foreign workers in Romania."

Romania faces severe labor shortages, with its Economic and Social Council allocating an annual quota of 100,000 non-EU workers. The Ilfov county, surrounding the capital Bucharest, has registered over 51,000 foreign nationals, with Nepalis forming the largest demographic. High demand exists in sectors like construction, hospitality, manufacturing, warehousing, logistics, and caregiving. However, challenges remain. Lhakpa Sherpa, president of the Sherpa Community Association in Bucharest, noted that many Nepalis view Eastern Europe as a transit point. "The visa processing for Romania is currently the fastest. Once workers obtain their temporary residence card, many try to move to Western Europe," Sherpa explained. "However, the Romanian government has started cracking down on this."

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The visa processing for Romania is currently the fastest. Once workers obtain their temporary residence card, many try to move to Western Europe. However, the Romanian government has started cracking down on this.