Addressing the youth workforce and returnee migrants and bolstering employment opportunities in the country are crucial for Nepal's sustainable development
A nation, be it a developed or a developing one, needs to give top priority to widening opportunities for the youth through a favourable policy to ensure that the needs and priorities of the economy and society are addressed. As per the 2021 census, 61 per cent, or 17 million, of its citizens make up youths, but the current outlook for engaging this youth population in Nepal paints a grim picture.
Reportedly, there is an annual entry of more than 500,000 youths in the labour market. At the same time, the country is seriously facing the problem of an inadequate work force. The unemployment rate and the
number of youths not in gainful employment (underemployed) due to lack of job opportunities and skill mismatch are substantial. Consequently, everyday about 2,000 youths, mostly unskilled, semi-skilled and under 10 grade dropouts, leave the country in pursuit of foreign employment. At the same time, there is a general lack of human resource in manufacturing and processing, construction, services and agriculture sector, requiring the import of workers from India.
Lack of employment opportunities in relation to the labour needs, failure of the education institutions to cater to the job market, lack of focus on post-secondary vocation training, society/peer influence and an overall unfavourable business ecosystem have led to an exodus of youths to countries abroad. In the last five years, the number of youths migrating for foreign employment has reached 2.3 million.
The economy is fraught with an absence of quality manpower, sinking labour productivity, labour problems due to political patronage and corruption, which have led to a stagnant business environment. There is thus a severe constraint in harnessing the "demographic dividends" of the youth force and calls for immediate and targeted interventions.
There is vast potential in the agriculture, manufacturing, services, hydropower, and tourism sectors in Nepal. Manpower availability in these sectors is one of the attractions for investors. The youth is embodied with an innovative attitude, vigour, astuteness and entrepreneurship. They need a friendly policy or programme and institutional support for capability enhancement to be able to partake in harnessing the opportunities available. Factors such as a favourable government policy for human resource development with emphasis on technical education and vocational training, supporting start-ups and access to seed capital/financial assistance impact youths' participation in economic activities and the labour market.
Addressing the youth workforce and returnee migrants and bolstering employment opportunities in the country are crucial for Nepal's sustainable development. As a corollary to this, due consideration is needed to raise the capability of the labour force. The youths can be better positioned to enrich the health of the economy by exploiting the available economic potentiality and cater to the demand of the labour market. To attain this, here are some implementable targeted interventions to consider:
Governmental agencies must motivate the academic institutions and the business sector to put collaborative effort to educate and train youths and remediate the educational skill gaps in the workforce. Most fresh entrants to the labour market are without the matching skills necessary for the job market. Hence, equipping them with technical education and vocational training (TEVT), on-the-job training (OJT) and apprenticeship/internship training is vital to make them capable and employable. The government must implement a policy to motivate the business sector to invest in training programmes to upskill and reskill migrants as well as unskilled workers. This will enable them to acclimatise to the needs of the local labour market.
Government agencies must develop targeted engagement plans for returnee migrants. The roadmap should address their skills and aspirations and provide initial resource support to harvest their skills through counselling, incubation arrangements and mentorship.
Government agencies and private sector chambers/associations need to strengthen the "start-up incubators and mentorship programmes" to facilitate the growth of youth-led start-ups to foster innovation, creativity and entrepreneurial skills through mentorship and networking opportunities.. Government agencies, financial institutions and chambers must extend economic opportunities that facilitate returnee migrants' integration into the enterprises and formal labour market.
TEVT institutes, both public and private, need to periodically review and align their courses to enable the youths to develop skills to transition to gainful employment, thus creating opportunities for waged and self-employment.
The government and private sector should strengthen the Employment Information Centre (EIC) to expand its activities covering the major labour market centres and build a networking system for the linkage of applicants with the large employers and industry/commodity and trade associations. Digital platforms and algorithms must be used to connect unemployed youths with potential employers and job listings and placements. Government agencies should expand the network of skill testing and labour certifications and re-certification programmes to reduce skill downgrading and informality.
Access to business incubators, working spaces and technical resources that young people need must be expanded to develop their businesses. Both government and private sectors must support young entrepreneurs to gain access to markets and networks that can elevate their business ventures.
By implementing these measures, Nepal can create an ecosystem that nurtures and supports young entrepreneurs, contributing to economic growth and job creation. All concerned should remember that "Investing in the youth today ensures a prosperous and sustainable future for all!"
