Nepal – Jobs Diagnostic

Elizabeth N Ruppert Bulmer, Ami Shrestha and Michelle Lisa Marshalian

No 32149248, Jobs Group Papers, Notes, and Guides from The World Bank

Abstract: Nepal’s economy is gradually shifting from largely subsistence agriculture to more modern industry and services. Using data from labor force surveys, the 2018 Economic Census and a 2019 survey of SMEs, the report concludes that Nepal’s economy is making great strides towards better work opportunities for its labor force, but not all job-seekers are able to access good-quality jobs…especially women. In the last decade, large numbers of men have entered jobs in construction, manufacturing, commerce and transportation, among others; even though most of these are informal jobs or temporary wage jobs, they are nevertheless more productive and provide improved livelihoods compared to traditional low-productivity farm work. Women, on the other hand, have not transitioned in significant numbers. Nepal’s structural transformation has been slowed by various impediments. Nepal’s dramatic topography makes it hard for many workers to access wage jobs and costly for producers to transport goods and connect to consumers. Gendered social norms limit female labor mobility and work opportunities, and subsistence activities remain prevalent. Most firms are micro-sized and have low productivity. SMEs mainly target small local markets rather than exporting or connecting to global value chains. Workers’ skills are generally low, and employers struggle to recruit higher-level skills needed to increase their product quality, expand operations and create more jobs. The report provides a detailed set of policy recommendations for improving job outcomes through (a) fostering SME productivity and growth; (b) improving the business environment and labor market policies; (c) increasing the individual, family and economy-wide benefits of international migration; and (d) preparing and connecting women and youth to better job options including entrepreneurship.

Keywords: complete secondary school; life expectancy at birth; annual population growth rate; Internal rate of return; liquidity need; remittance-receiving household; Technical and Vocational Education; female labor force participation; labor force participation rate; Savings and Credit Cooperative; Cost of Doing Business; labor force survey data; real exchange rate appreciation; small and medium size enterprise; share of employment; labor market outcome; births per woman; agriculture industry; average productivity level; social insurance coverage; global value chain; Migration and Remittances; working age population; labor market policy; change in employment; labor force growth; negative population growth; labor market trend; human development gains; high productivity jobs; take time; share of wage; public works program; social insurance contribution; final consumption good; gulf cooperation council; social security system; foreign direct investment; SMEs & Businesses; investment climate improvement; private sector delivery; business support service; alternative delivery mechanism; human development index; improving market access; access to asset; public information campaign; higher education system; annual economic growth; small holder farmer; food safety control; retail payment system; access to finance; economies of scale; foreign investment policy; secured transactions systems; years of schooling; trade facilitation agenda; Private Sector Growth; private sector demand; per capita income; data collection instruments; gross national income; lack of creditworthiness; time series data; per capita term; level of employment; number of jobs; traditional gender roles; high skilled labor; low skilled labor; increase in remittance; privileges and immunity; national planning commission; Population Age structure; total fertility rate; slow population growth; working age people; share of children; education and health; decline in poverty; national poverty line; employment and unemployment; human capital; value added; subsistence activities; national account; population pyramid; labor regulation; Demographic Transition; employment growth; Job Creation; wage employment; labor outcomes; living standard; product quality; total employment; business environment; income support; total output; job growth; new market; unpaid work; goods export; demographic dividend; replacement rate; remittance inflow; migrant worker; high wage; external migration; family work; market opportunity; extreme poverty; traditional methods; fundamental changes; subsistence agriculture; construction boom; formal employment; population shift; domestic production; high concentration; remote district; export promotion; new job; unpaid worker; import tariff; household consumption; Digital Solutions; backward linkages; population distribution; soft skills; domestic output; family farming; working condition; external migrants; productivity gain; employment share; productive sector; foreign consumers; permanent job; communication sector; dependency ratio; Job Quality; retail trade; global demand; household income; financial resource; business service; foreign market; foreign investor; sustainable livelihood; global market; competitive level; federal government; current investment; manufactured products; external competition; environmental concern; foreign buyer; earning opportunity; wage work; work transition; increased investment; reduced poverty; rural population; household spending; local good; increased spending; rural productivity; security concern; regulatory capacity; moveable collateral; business knowledge; tax burden; occupational segregation; household earning; moveable asset; youth access; necessary skill; regulatory change; labor earning; school youth; rural market; tax rule; equity financing; trading partner; young females; labor demand; mobility constraint; import requirement; important component; educated woman; Business Regulation; family care; inclusive growth (search for similar items in EconPapers)
Pages: 118
Date: 2020-06-21
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