Analysis of labour market and migration trends in Nepal

The report presents an in-depth overview of Nepal's labour migration sector in Nepal, including trends and patterns of the population growth and labour markets; the demand situation in countries of destination; the technical and vocational education and training sector in Nepal and its relationship to labour migrants; and the process of labour migration and support provisions in place for workers. The focus on the report is on the examination of the various inter-linkages between these different aspects of Nepal's labour migration sector.

Over the years, labour migration for foreign employment has been a vital livelihood option for the Nepali population. While seasonal migration to India especially from certain areas of Nepal has had a long history, the liberalized economy and political environment of the nation after the 1990s formalized labour migration as an opportunity for employment. The lack of jobs and increasing income gaps acted as push factors for the youth to explore foreign markets for employment opportunities.

While migration for foreign employment continues to experience a steady growth, there is a need to improve the quality of workers by enhancing their technical and vocational skills in order to sustain the demand and supply of Nepal workers. This requires an effective labour market information system which facilitates the possibility of matching the demand for migrant workers and occupation with the skills of the workers.

The report complements the Labour Market Trends Analysis and Labour Migration from South Asia to Gulf Cooperation Council Countries, Malaysia and India report published in June 2015 by the ILO and GIZ.