Assessment of public employment services and labour market policies in Nepal

This report, “Assessment of Public Employment Services and Labour Market Policies in Nepal”, presents a comprehensive review of the country’s employment service delivery mechanisms and labour market policies. It provides valuable insights into the current institutional framework, policy coherence, programme effectiveness, and areas for capacity strengthening. The assessment draws on extensive stakeholder consultations and data analysis to identify gaps, opportunities, and strategic priorities for reform. The International Labour Organization is proud to support the Government of Nepal in its efforts to build a more responsive and integrated employment services system. The assessment also included a review of relevant literature and legal and policy frameworks.

Nepal continues to face significant labour market challenges, including high levels of informal employment, youth unemployment and underemployment, skills mismatches, and increasing labour migration. In this context, effective Public Employment Services (PES) play a critical role in connecting jobseekers with decent work opportunities, supporting employers, and promoting inclusive economic growth, particularly for youth, women, persons with disabilities, returnee migrant workers, and other vulnerable groups.

This assessment serves not only as a diagnostic tool but also as a foundation for future policy dialogue and collaborative action among government institutions, social partners, development partners, and civil society. The findings from the assessment will further support the Ministry of Labour, Employment and Social Security (MoLESS), provincial and municipal governments and other relevant stakeholders to gain a better understanding of the overall PES policy and structure in Nepal and of Employment Service Centres’ (ESCs’) performance and provide evidence-based information that feeds the decision-making process for closing gaps, aligning resources, and ensuring that jobseekers and employers receive consistent and good-quality services.