Nepal Sets New Course for Better Jobs, Social Protection and Stronger Care Economy

Nepal's population is undergoing important demographic changes that could reshape employment opportunities and demand for social services over the coming decades.

Nepal is working to create better employment opportunities, expand social protection and improve care services as the country prepares for major changes in its population and workforce. Government officials, researchers and United Nations representatives met on 30–31 October 2026 to discuss policies that could strengthen economic security and support people facing difficulties in accessing decent jobs. The two-day workshop focused on practical strategies that connect employment growth with social protection and essential care services, particularly for women, children and vulnerable communities.

Nepal's National Planning Commission (NPC) and the Ministry of Youth, Labour and Employment (MoYLE), with technical support from the International Labour Organization (ILO) and UN Women, jointly led the workshop. Discussions centred on the National Roadmap for the Global Accelerator on Jobs and Social Protection for Just Transitions, the National Employment Policy and the National Care Economy Promotion Policy. These initiatives are expected to help Nepal create a more inclusive labour market, improve access to social security and respond to changing demands for care services.

Nepal's population is undergoing important demographic changes that could reshape employment opportunities and demand for social services over the coming decades. According to demographic information highlighted during the workshop, the country's growing youth population needs decent employment and reliable social protection, and the number of people aged 60 and above is projected to exceed 7.1 million by 2051. Continued migration and population ageing are expected to increase pressure on families and care systems, making it important for Nepal to expand employment opportunities and strengthen support services.

Nepal Identifies Key Industries for Job Creation and Economic Growth

Opening the workshop, National Planning Commission member Dr Pukar Malla highlighted agriculture, tourism, construction, the care economy and information and communication technology as priority sectors for employment growth. These industries were identified as important areas for expanding decent work opportunities, supporting economic development and connecting more people with social protection. Participants examined three strategic priorities under Nepal's National Roadmap, developed through the country's participation as a pathfinder country in the Global Accelerator on Jobs and Social Protection for Just Transitions.

Improving technical and vocational education emerged as an important priority, particularly for helping young people develop skills that match changing labour market needs. Participants recommended stronger coordination between federal, provincial and local governments to implement the National Qualifications Framework and establish an integrated digital database of training providers and skilled workers. Greater investment in research and improvements in skills testing were also proposed to make vocational training more effective and help workers access better employment opportunities.

Social Protection Reforms Could Support Vulnerable Workers and Families

Expanding social protection was another major focus, with participants calling for programmes that respond more effectively to people's financial circumstances, employment conditions and personal needs. Recommendations included adapting contributory social security schemes to accommodate workers in micro and small enterprises, temporary employees and part-time workers who may face difficulties accessing existing benefits. Stronger protection was also proposed for vulnerable groups, particularly street children, older people and women experiencing violence, to improve their access to essential support.

Digital technology was identified as an important tool for making employment services, business registration and social security systems more accessible and efficient. Participants called for integrated platforms that simplify enterprise registration, strengthen labour market information, support social security enrolment and help informal businesses and workers enter the formal economy. Better coordination between existing digital systems could make it easier to provide one-stop services, supported by national policy guidance that allows provincial and local governments to respond to their communities' needs.

The discussions reflected concerns that employment growth alone may not provide sufficient security for workers whose jobs are temporary, informal or outside traditional social protection arrangements. Improving coordination between skills development, employment services and social security systems could help more people find suitable work and obtain protection against economic hardship. Participants stressed that these reforms should respond to the different needs of workers, businesses and vulnerable populations across Nepal.

Nepal Targets New Employment and Care Economy Policies Within 100 Working Days

The workshop also reviewed preliminary assessments prepared by subcommittees responsible for conducting rapid diagnostics of the proposed National Employment Policy and National Care Economy Promotion Policy. Stakeholders discussed the findings, shared recommendations and provided feedback that helped refine and finalise the assessments before the next stage of policy development. The government expects to begin formulating both policies shortly, with a target of completing them within the next 100 working days.

Developing a national care economy policy is particularly important as Nepal prepares for growing demand for services supporting older people and others who need assistance in daily life. The country's changing population structure and continuing migration trends highlight the need for stronger care arrangements alongside policies that create decent jobs and improve social security coverage. Bringing employment, care services and social protection into a coordinated policy framework could help Nepal address these interconnected challenges more effectively.

The workshop concluded with a call for stronger cooperation among government institutions, academic experts, United Nations agencies and other stakeholders to complete the National Roadmap and proposed policies. Participants emphasised the importance of turning discussions into practical measures that promote decent employment, improve social protection and support an inclusive economic transition. The success of these efforts will depend on sustained collaboration and policies that respond to Nepal's changing workforce without leaving women, children, older people and vulnerable communities behind.