Published by: International Labour Organization

Growth aimed at creating employment is considered one of the main conduits for sustainable economic development and poverty reduction. This is particularly the case in countries like Nepal, which is experiencing significant demographic shifts as well as a structural transformation of the economy, cycles of political instability, poverty and inequality, all of which have led to a massive exodus of the productive workforce out of the country. This report has been prepared as a background document to assist the Government of Nepal in preparing the national employment policy within the framework of current economic and social policies of the country. Based mainly on secondary sources, the report discusses macroeconomic patterns and trends related to growth in Nepal, and provides an overview of the employment situation and recent performance of the Nepali labour markets. It also includes a review of existing policies dealing with employment, the status of industrial relations and social dialogue in the country, and an analysis of the impact of existing regulatory frameworks on enhancing productive employment opportunities. The report ends with recommendations on policy changes required to encourage progress in enhancing employment-centric growth in Nepal.