Nepal fails to cash in on demographic dividend, going to be ageing society soon

Nepal's much-touted demographic dividend is gradually fading away.
Leave it or take it. Nepal has only two decades or it may never get a chance to develop as the society will be ageing after that.
“The demographic advantage is gradually weakening and Nepal has just over two decades to turn its growing working-age population into an engine of economic growth, employment and prosperity before the country's demographic window begins to close,” reveals to a new World Bank report.
Nepal's working-age population is projected to reach its peak in 2047, marking a critical turning point in the country's demographic transition, the report adds. “Nepal is expected to enter the category of an aged society by 2059, leaving a relatively narrow period to build a productive economy, generate quality jobs and establish sustainable social protection systems before population ageing accelerates,” according to the findings of the World Bank's report, ‘Demographic Change in South Asia: From Tailwinds to Headwinds for Development,’ released on Thursday.
The report identifies Nepal as having a longer period to prepare for population ageing than most of its South Asian neighbours. However, it warns that the country faces significant structural challenges in converting its favourable demographic structure into sustained economic gains.
The 2047 projection is particularly important for Nepal, which has yet to establish a sufficiently broad industrial and productive employment base to absorb its growing working-age population. Unless the country creates more productive jobs, improves workforce skills and expands economic opportunities, its demographic advantage could become a missed development opportunity.
The demographic dividend refers to the potential economic gains that arise when the proportion of the working-age population is relatively high compared with the dependent population, particularly children and older people. This creates an opportunity to increase production, savings, investment and per capita income.
However, the dividend is not automatic. It depends on the economy's ability to provide employment, improve labour productivity and ensure that a larger share of the population participates in productive economic activities.
The World Bank estimates that South Asia currently has 1.17 billion people of working age. The region's favourable demographic structure has contributed significantly to economic expansion over the past two decades.
First published in nepalkhabar.com -- https://en.nepalkhabar.com/news/detail/20453/)

Nepal advances national priorities for decent jobs, social protection and the care economy

Government representatives, academia and United Nations (UN) agencies gathered on October30-31 to advance Nepal's agenda on jobs, social protection and the care economy as part of efforts to drive decent job creation while achieving inclusive growth and respond to the country's changing demographic realities.
The two-day Co-Creation Workshop 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 was led by the National Planning Commission (NPC) and the Ministry of Youth Labour and Employment (MoYLE) with technical support from the International Labour Organisation (ILO) and UN Women, according to a press note issued by the ILO.
Nepal faces a growing need to connect people with decent employment, social protection and care services, the press note reads, addig "As per the 2021 Census, the present growing youth population is in immediate need for adequate decent employment including resilient social protection whereas in the future the population aged 60 years and above is projected is projected to reach over 7.1 million by 2051, coupled with persistent migration trend, will be increasing demand for care and support services."
Opening the workshop member of National Planning Commission (NPC) Dr Pukar Malla emphasised the importance of exploring growth in focus sectors of agriculture, tourism, construction, care economy and ICT and digitalisation as way forward for employment creation and social protection expansion.
During the workshop, participants engaged in discussions around three strategic entry points to advance employment and social protection in Nepal, as proposed in the National Roadmap on Jobs and Social Protection for Just Transitions, developed by Nepal as a pathfinder country under the Global Accelerator on Jobs and Social Protection for Just Transitions (GA).
Key stakeholders, on the occasion, identified priority actions to strengthen employment, skills development, and social protection in Nepal.
For Technical and Vocational Education and Training (TVET), participants emphasised stronger coordination across all three tiers of government to implement the National Qualifications Framework (NQF), establish an integrated digital database of training providers and skilled workers, increase research investment, and improve skills testing, the press note adds.
To expand social protection, participants recommended more flexible, needs-based programmes and adapting contributory social security schemes to include micro and small enterprises, temporary and part-time workers. They also stressed stronger protection for vulnerable groups, including street children, older persons, and women facing violence.
Participants further highlighted the need for integrated digital systems to simplify enterprise registration, strengthen labour market information, facilitate social security enrolment, and accelerate formalization. They called for better interoperability and coordination of existing digital initiatives to enable accessible, one-stop services, alongside national policy guidance that supports context-specific implementation by provincial and local governments.
As a part of the workshop, the sub-committees formed to carry out Rapid Diagnostics on National Employment Policy (NEP) and National Care Economy Promotion Policy (NCEPP) presented the findings of the assessments. The presentations were followed by constructive discussions and feedback from stakeholders, which helped refine and finalise the assessments. Building on these outcomes, the formulation processes for both policies are expected to commence shortly, with a target of finalising the policies within the next 100 working days.
The Co-Creation workshop brought together representatives from the government, academia and United Nations agencies, and it concluded with a call for strengthened collaboration and commitment among stakeholders across sectors to review, refine and finalise the National Roadmap and two proposed policies. The workshop underscored the importance of translating these collective efforts into actionable policies and strategies that promote decent employment, strengthen social protection and advance a just and inclusive transition, ensuring that women, children and vulnerable populations are not left behind.
Nepal is a Pathfinder Country under the UN Secretary-General's Global Accelerator on Jobs and Social Protection for Just Transitions, a global initiative that supports countries to accelerate job creation and expand social protection as part of inclusive and sustainable development pathways. In Nepal, the initiative lead by National Planning Commission (NPC) and brings together the United Nations Resident Coordinator's Office, ILO, UNDP, UNICEF, UN Women and the World Bank in support of nationally led priorities, the press note adds.