As Nepal is struggling to get economy back on an even keel, widespread unemployment has posed a serious problem to achieve inclusive growth. Ironically, the joblessness has soared at a time when the country enjoys demographic dividend - working age population is more than 65 per cent. As a result, around 3,000 youths leave the country every day in search of better employment prospect abroad. It shows the state's inability to provide job to them. The United Nations’ Sustainable Development Goal 8 underscores the vital link between inclusive economic growth and employment. It is crucial, as poverty eradication hinges on the availability of stable, well-paid jobs.

The country’s path to prosperity and social stability depends on creating a job market that can check brain drain, drive local economic activities, and provide citizens with the opportunity to live a better life. The robust job market can be a catalyst for addressing economic issues by increasing productivity, boosting consumer spending, and attracting both domestic and foreign investment. Prime Minister KP Sharma Oli’s recent declaration of prioritising entrepreneurship development and job creation is a positive step, but it is important to ensure that the promise is supported by concrete policies and effective implementation. For Nepal, the creation of employment opportunities is essential to make use of talents, increase regional spending, and support general economic stability.

Nevertheless, generating jobs is not without its difficulties. The COVID-19 pandemic and other worldwide issues, such as the conflict between Russia and Ukraine, have severely damaged the economy and caused it to remain stagnant for almost four years. Domestically, economic activity has been hindered by a number of restrictive policies. It has brought forth a vicious cycle of weak growth and decreased demand. The concerned authorities need to understand that creating jobs is a by-product of a strong and dynamic economy. This requires a holistic approach that addresses the current imbalances between demand and supply and eases liquidity constraints in the financial sector.

One important step the government should take is to revisit the working capital loan guidelines. In times of economic distress, access to working capital can be a lifeline for businesses, especially small and medium enterprises that form the backbone of job creation. In order to keep businesses afloat and potentially expand, the government should simplify and facilitate access to loans. Similarly, the government must ensure effective coordination between fiscal and monetary policies. The upcoming monetary policy should be devised in such a way that presents an opportunity to align with the budget to create a cohesive strategy for economic revival. This coordination should aim to stimulate private sector investment, which has been notably lacklustre despite the apparent liquidity in banks and financial institutions.

The focus on job creation must be more than a political catchword. It should be the foundation of a comprehensive profitable strategy that leverages the country’s strengths, addresses its weaknesses, and creates opportunities for its citizens. The government needs to make agri-business more profitable by helping farmers sell their products. It can encourage manufacturers to team up with foreign companies to bring in new ideas and money. The government should also give tax exemption facilities to businesses that make things or work with farm products. Also, the government should promote new growth sectors related to environmental sustainability and climate change. Political stability and a resilient economy are essential to providing not just jobs but prosperity and stability for now and for generations to come.

Published on: 24 July 2024 | The Rising Nepal