Productivity of Nepali employees erodes to negative in last one decade

Productivity of Nepali employees has eroded and dropped to negative in last one decade from 2002 to 2011, according to a draft National Employment Policy 2013.

Though, the number of employment has increased in last one decade, the productivity of the employees has plunged to negative, it said, adding that the productivity could ensure the handsome salary and respectable employment situation.

However, the employees' productivity that stood at 3.71 per cent – the highest in last one decade – in 2007 has dropped to -1.03 in 2011, the draft added.

Without increased productivity, the employees cannot bargain for the handsome salary, said Prof Rajendra Prasad Shrestha, who is helping the Ministry of Labour and Employment draft the National Employment Policy.

Due to prolonged political transition and scheduled power outage, the entrepreneurs have not established any new industry in last couple of years, though the number of youths coming to labour market every year has not seen any drop.

According to the figures, in 2002, some 12.13 million were employed, whereas the employment has increased to 15.09 million in 2011, but the rising number of unemployment and migrants do not match the figures as the country has a total population of 26.5 million.

According to International Labour Organisation (ILO) definition, Nepal has unemployment rate of only 2.1 per cent "but the problem in the country is not unemployment but underemployment," Shrestha added. "The urban unemployment is higher than the rural unemployment, though there is no different in male and female unemployment."