Enhancing Public Employment Services in Nepal: Strengthening ESCs for a More Inclusive Labour Market

Despite some progress, ESCs still struggle to connect job seekers with employers efficiently and provide systematic referral services.

Unemployment remains a pressing challenge in Nepal, particularly among youth and rural populations. The Right to Employment Act (2018) established Employment Service Centres (ESCs) to offer job matching, career counseling, and employment promotion services. However, these centers continue to face challenges in effectively addressing the diverse needs of job seekers, particularly marginalized groups such as returnees, persons with disabilities, and women.

Despite some progress, ESCs still struggle to connect job seekers with employers efficiently and provide systematic referral services. To address these challenges, a validation workshop was held on 24 February 2025 to review the findings of an assessment on Public Employment Services (PES) and Labour Market Policies in Nepal. Organized by the International Labour Organization (ILO) Nepal and the Ministry of Labour, Employment and Social Security (MoLESS), the workshop aimed to validate preliminary findings and gather final inputs to improve employment services in the country.

Key Findings and Recommendations

The study, led by a team of international and national experts, evaluated the effectiveness of ESCs and provided actionable recommendations for their enhancement. ILO Nepal Country Director, Numan Özcan, emphasized the importance of strengthening Nepal's public employment services and labour market policies. "Through this collaborative effort, we aim to refine the framework of ESCs, ensuring a sustainable and effective public employment system that benefits job seekers, employers, and the labour market as a whole," he noted.

Dandu Raj Ghimire, Joint Secretary of the Internal Employment Management Division at MoLESS, highlighted that the assessment covers both public and private employment sectors. The report will be presented at national and international forums, outlining the roles of federal, provincial, and local governments in employment service delivery. "The recommendations proposed by the experts will provide a clear direction for the future of ESCs and employment services in Nepal," he stated.

Strategic Implementation and Future Directions Mr. Eamonn Devern, Assessment Team Leader, stressed the need for a phase-wise, incremental approach to implement solutions tailored to Nepal's diverse regions. He emphasized the importance of local context adaptation, ensuring that employment services cater to each region's unique needs and contribute to a more inclusive public employment system.

Similarly, Mr. Dev Bir Basnyet, Deputy Team Leader of the PES Assessment Team, presented key findings on PES and labour market policies in Nepal. The workshop, attended by 60-65 stakeholders from government agencies, employers' and workers' organizations, development partners, and labour market experts, provided a platform to discuss PES improvements, employment opportunities, and the alignment of PES with Nepal's long-term employment goals, including the "Decade of Internal Employment" initiative.

Collaboration for Sustainable Employment Solutions Dr. Krishna Hari Pushkar, Secretary of MoLESS, underscored the need for public-private partnerships and collaboration among youth, trade unions, and various levels of government to strengthen PES in Nepal. "The strategies recommended by the assessment team are highly relevant, and I appreciate the ILO and the assessment team for their critical work in this study," he stated in his closing remarks.

This validation workshop marks a significant step in refining PES strategies to ensure that employment services in Nepal are inclusive, efficient, and responsive to current and future labour market needs.

Strengthening ESCs for Long-Term Impact The ILO's 'Strengthening of Employment Service Centres in Nepal' project, supported by the World Bank and Swiss Development Cooperation (SDC), is working in collaboration with MoLESS to institutionalize PES at the federal, provincial, and local levels. The project aims to support ESCs by:

• Expediting the implementation of employment promotion services,
• Enhancing continuous capacity building for ESC staff,
• Promoting long-term institutional development and sustainability,
• Strategically positioning ESCs within provincial and local governments.

By implementing these strategies, Nepal's public employment services can be transformed into a robust system that efficiently connects job seekers with employment opportunities and contributes to a stronger, more inclusive labour market.