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🇳🇵 Nepal /Economy & Trade

Nepal's labor market caught between jobless workers and worker shortages

From Kathmandu Post · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Context piece
  • Nepali workers returning from abroad are struggling to find employment in Nepal, despite having skills and experience.
  • Employers in Nepal, particularly in the construction sector, report a shortage of workers and are hiring from neighboring countries.
  • This paradox leaves many skilled Nepali workers with no choice but to seek employment overseas again, creating a cycle of labor migration.

Nil Bahadur Khadka returned to Nepal after 18 years working in the UAE and Saudi Arabia, hoping to settle down. Armed with overseer certificates, he found no construction companies willing to hire him in Nepal. After nearly seven months of fruitless job searching, his former employer in Saudi Arabia offered him a better-paying position in Kuwait.

"Over there, companies actively seek us out and call us. Here, even after going from door to door looking for work, nobody trusts us," Khadka told Kantipur. He is now preparing to leave for Kuwait, where he expects to save around Rs100,000 a month, to support his family's needs. Rupal BK, 30, shares a similar predicament. He returned from Malaysia three months ago but has found no work in his local area. Small companies that might have vacancies only employ five to seven people, and he cannot find labor work that pays the Rs20,000 to Rs30,000 monthly he needs. He is now preparing to go to Qatar for a hotel job, a process that will cost him Rs250,000 for the visa.

Over there, companies actively seek us out and call us. Here, even after going from door to door looking for work, nobody trusts us.

— Nil Bahadur KhadkaDescribing his difficulty finding work in Nepal after returning from overseas employment.

Meanwhile, employers face a severe labor shortage. Shivahari Ghimire, secretary-general of the Federation of Contractors’ Associations of Nepal, estimates the construction sector alone needs an additional 300,000 to 500,000 workers. "The construction sector needs 1.1 million workers directly. Only around 800,000 to 900,000 are currently available in the market," Ghimire said. He noted that many skilled workers have left the country, forcing them to hire from Bangladesh and India.

Nepal's labor market is caught in a paradox: returning citizens cannot find jobs, while employers struggle to fill positions. The 2021 census identified 15.7 million people as economically active, with the largest groups aged 20-39. However, neither the state nor the private sector appears capable of absorbing this workforce, pushing many to seek opportunities abroad once more.

The construction sector needs 1.1 million workers directly. Only around 800,000 to 900,000 are currently available in the market.

— Shivahari GhimireHighlighting the significant worker shortage in Nepal's construction industry.
DistantNews Editorial

Originally published by Kathmandu Post in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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