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Nepal – Government prepares final employment policy draft

22 October 2013

The Ministry of Labour and Employment has prepared the final draft of the National Employment Policy 2013, reports the Himalayan Times. The report focuses, among other things, on promoting entrepreneurship, bringing in youth to the agricultural sector, encouraging youths to take up vocational courses, career guidance counselling for high school graduates, and timely dissemination of labour market information, such as job vacancies.

The draft, prepared in cooperation with the International Labour Organisation, revolves around job creation in five key areas: agriculture, manufacturing, construction, information technology based enterprises, and tourism. However, acknowledging the role of workers’ remittance in poverty reduction and economic development, and considering the foreign employment sector as the key job provider in the medium-term, the draft also incorporates provisions on providing skills training to at least 50% of people leaving the country for employment purpose.

Paban Kumar Timilsena, the Under-secretary at the Ministry of Labour and Employment, said “We will now hold discussions with key stakeholders like trade unions and employers organisations and incorporate their suggestions in the draft. Discussions will also be held at regional and central levels, and with various ministries that will have to formulate policies in line with this document.”

According to Mr Timilsena, these consultations will be completed prior to the end of this fiscal year after which the draft will be forwarded to the cabinet for final approval.

Over the years, Nepal’s labour market scenario has remained bleak. This was because of low growth rate, dominance of works in the informal sector, labour disputes and inadequate skills, among others. 

An estimated 450,000 people join the Nepalese labour market every year, of which only a small fraction secure employment in the domestic market. Approximately 400,000 accept placements abroad. 


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