Labour shortage boon for Nepal

KATHMANDU: Labour shortage in Asia-Pacific economies including the United States and Japan can be a good chance for Nepal to explore new destinations. Asia-Pacific Economic Cooperation (APEC)’s business advisory committee yesterday forecast that Asia-Pacific economies need 100 million labourers in the next two decades years.

“Real shortages of skilled and semi-skilled workers exist in many APEC economies, even during this recession period,” said the report that was distributed to APEC economies. The report has suggested immediate and long-term measures to solve the labour shortage. “If APEC countries fail to allow easier movement of migrant workers, they will face critical labour shortage,” it warned.

The Nepali outsourcing industry has taken it as a positive trend for the country’s remittance-based economy. The growing demand for labour is always good for us, said Nepal Association of Foreign Employment Agencies (NAFEA) president Tilak Bahadur Ranabhat. He urged for strong labour diplomacy by Nepali diplomatic missions in and possible-destination nations.

Around 2.5 million Nepalis are working overseas mainly in Malaysia and Gulf countries — Saudi Arabia, the United Arab Emirates and Qatar. Remittance from these migrant workers contributed 20 per cent to the gross domestic production (GDP), over Rs 200 billion in 2008-09.

Remittance earned by Nepali labourers is low compared to what their South Asian counterparts earn because most Nepali migrant workers are unskilled. According to an estimate, 71 per cent of Nepalis working abroad are unskilled workers, 27 per cent are semi-skilled and only two per cent are skilled.

Labour expert Dr Chiranjivi Nepal hoped Nepal benefits from the shortage. “APEC countries are growing economies where Nepali blue-collar workers can get jobs,” he said while urging for comprehensive efforts to secure new labour markets. The government must start massive skill development training, he said. It should focus on sending semi-skilled and skilled manpower abroad because they would be able to earn more, he added.

The APEC report has criticized the current policies of member-countries and said, “They have tended to focus

on controlling and limiting migrant worker movement rather than facilitating it.”

The research pointed out that the United States may require additional 35 million workers

by 2030 and Japan 17 million by 2050. Likewise, Canada may face a labour shortage of

one million workers by 2020. It said Russia would need more than 25 million workers in the next 20 years and South Korea may face a shortfall of 4.8 million workers by 2020.

By 2010, the global shortage of skilled workers may exceed 2,00,000, and worldwide shortfall of skilled manufacturing workers could go up to 14 million by 2020.

Projected Labour Demand

Countries Labourers Year(up to)

USA 35m 2030

Japan 17m 2050

Canada 25m 2030

S Korea 4.8m 2020