Himalayan News Service

Kathmandu, May 12:

The unemployment rate in Nepal stood at 4.1 per cent in 2003-04 for males and 3.8 per cent for females, with only one-percentage point decrease for males and none for females in comparison to figures from eight years ago.

Underemployment rate however shot up to 15 per cent for males and 26 per cent for females in 2003-04. During 1995-96, unemployment rate for males stood at 5.4 per cent while for females it was 3.8 same as in 2003-04.

Between 1996 and 2004, underemployment increased from 11 to 14 per cent for illiterate men and from 11 to 17 per cent for men in poorest consumption quintile and from 19 to 22 per cent for women in the same quintile.

According to a survey on Employment and Earnings in Nepal, between 1996 and 2004, unemployment rose among better-educated females.

Dilip Parajuli of DFID-Nepal commented that visible unemployment was quite low in Nepal, consistent with evidence from other low-income countries where very few people can afford not to work.

Experts said that unemployment rates tended to be higher among the young age group and with better education as well as among those from households from richer consumption quintiles.

According to a survey presented by The World Bank and Central Bureau of Statistics jointly, urban areas are much more affected by unemployment in comparison to their rural counterparts.

Parajuli said that unemployment rate stands at seven per cent in urban areas compared to four per cent in rural areas while female unemployment rate is 14 per cent in urban areas compared to three per cent in rural areas.

High level of underemployment among rural women is attributed to their involvement in household chores and childcare activities, which are not accounted for in the employment hours.

As per the survey, male migrant ratio almost doubled during 1996-2004 to 14 per cent. The rural western hills recorded the highest migration rate in 2003-04 where out every three adult males, one was working abroad.

Rural Terai areas had a rate of about 14 per cent, while the eastern hills has just eight per cent, says the report.

In today’s programme, Ishan Ajwad of the World Bank presented a paper on attaining the Education Millennium Development Goals in Nepal. Similarly, other experts Maitreyi Das of the World Bank presented a paper on Poverty and Child Nutrition in Nepal.

Maitreyi Das mentioned in his report that improved nutrition directly increases labour productivity by making workers stronger and more energetic.

Total yearly wage earnings per worker increased by 133 and 65 per cent in Kathmandu and other urban areas respectively. Among rural areas, East Terai experienced the largest growth of 35 per cent followed by west hills (33 per cent).

The survey on Employment and Earnings in Nepal, 1996 and 2004 has categorised

employment sectors such as self-employment agriculture, self-employment manufacturing, self-employment trade, self-employment services, wage-employment agriculture, wage-employment skilled non-agriculture and wage-employed unskilled non-agriculture.