Poverty to be reduced through job creation: PM

Prime Minister KP Sharma Oli today said that the government’s top priority is to alleviate poverty through employment generation.
Addressing the two-day National Labour and Employment Conference 2019 – which kicked off in the capital today – he stressed on the need to reform the current education system and modernise the agriculture sector to help create more job opportunities and bring down the rate of poverty.
“Our agricultural system is still traditional and we have not been able to switch to mass production through the use of modern technology,” he said, adding that
Likewise, access to market is yet another problem that farmers have been facing today,” Oli added.
Lamenting those who prefer to go abroad for work, he said, that employment opportunities are gradually being created in the country. “It is necessary that every job gets respect and everyone gets a minimum wage, which is scientific to retain people in the country itself,” he said, stressing on government’s move to strictly implement minimum wage in every sector.
Archaeological sites are Nepal’s precious assets that could promote both tourism and job creation, the premier added.
Ministry of Labour, Employment and Social Security is organising the two-day ‘National Labour and Employment Conference’ starting from today with an objective to identify opportunities and gaps for employment creation and develop a dialogue-led consensus towards tackling pertinent labour and employment issues in Nepal.
“Earlier, foreign employment was our compulsion, now it has become a necessary compulsion,” said former labour minister Ramesh Lekhak, addressing the conference.
Lekhak also urged the government to focus more on implementation of development projects than just talking about development also to create jobs at home. “The concept of work has changed drastically,” he said, adding that discussions and meetings are no longer considered to be work. “It’s only the results that matter.
As some 11.6 per cent Nepalis are unemployed and 30 per cent semi-employed, the government aims at promoting an environment conducive to employment generation in the country, according to 2017-18 Labour Force Survey that further states that only 37 per cent of the workforce is engaged in the formal sector whereas 62.2 per cent is engaged in the informal sector. In the informal sector, the wage is very low calling for focus on regulating the informal employment sector. But there is a huge mismatch between the jobs in the market and available manpower.
“The skills and qualification of the people should be linked with possible opportunities in the employment market,” labour minister Gokarna Bista said, adding that formal channels should be ensured for sending Nepali people abroad, if they wanted to go for foreign employment.
Bista, on th occasion, also said that the government has initiated different programmes, including the Prime Minister Employment Programme targeted at generating employment opportunities in the country itself.
Representatives and experts from the government, private sector, trade unions, development partners, and non-governmental organisations are taking part in the conference that discusses on labor and employment policy, future of work, information technology, employment and wage, productivity, and national economy.
The conference also aims at exploring the avenues for labour and employment, strengthening worker-employer relationship, attracting Nepali youths towards domestic labour and ultimately strengthening the country’s economy. The organisers are hopeful that the recommendations furnished by the experts in the conference will help launch more strategic programmes in the labour and employment sector.
The first day of the conference today witnessed discussions and deliberations on ‘labour environment in the country’, and ‘existing labour-related policies and other opportunities’.

More women are working in Nepal

Nepali women are gradually climbing up in the job map comparatively more among the South Asian countries.
A World Bank paper reveals that the female workforce is rising in most parts of the world and so is in Nepal. In Nepal, women labour force employment is 79.9 per cent while in Bangladesh it is 57.4 per cent. In India 27 per cent of working age women were employed and in Pakistan the number stands at 24.6 per cent in 2015-16, the papers reads, adding that China – with its powerhouse economy – has 64 per cent of its women working, one of the highest rates in the world. "In the US, it is over 56 per cent."
Apart from parts of the Arab world, everywhere else more women are working.
The World Bank paper – by Luis Andres and colleagues – revealed that whether married or unmarried, whether Dalit, Adivasi or from the upper caste, whether illiterate or college graduates, women from all sections were increasingly not working in India.

South Korea increases quota for Nepalis more than threefold

South Korea – the most lucrative destination of Nepali migrant workers – has increased quota for Nepali migrant workers for 2018 by more than three fold compared to this year.
Korea – which is taking 3,100 Nepali migrant workers through Employment Permit System (EPS) in 2017 – has decided to increase the quota to 10,200 for 2018.
According to EPS Center, the Korean Human Resource Department has informed that the Korean government will take 10,200 Nepali migrant workers in 2018. Among the 10,200 workers, Korea has been seeking 6,200 workers for the agriculture sector and 4,000 for production sector.
The Centre also informed that it is planning to open applications for Korean language test from March 22 to March 31 and conduct the exam by mid-June.
According to the Centre, the candidates can apply online from this year. Because of the online facility, the candidates do not have to stay in queue for hours to submit their application like earlier years.
South Korea has been taking Nepali migrant workers every year through EPS. Nepali youth have been taking Korean Language Test to get listed in the roaster, from where the Korean Human Resource Department selects them in various sectors.

Nepal has 20-35 percent working poverty: Report

Nepal has 20 per cent to 35 per cent working poverty, according to an international report.
World Employment and Social Outlook: Trends 2017 (WESO), which was published by International Labor Organization (ILO) today, said that 20 per cent to 35 percent of the country's workforce is living on less than $3.10 per day.
The outlook has also highlighted that Nepal has 55 per cent to 70 per cent vulnerable employment. "The percentage of own-account workers and contributing family workers as a share of total employment is more than half," the report added.
However, the report states that Nepal has unemployment rate of 4 per cent. This is equal to the United States and less than the UK and Germany.
According to ILO, persons in employment comprise all persons above a specified age, who during a specified brief period, either one week or one day, were in the following categories, paid employment or self employment.
The report also highlighted that the global unemployment rate is expected to rise modestly from 5.7 per cent to 5.8 per cent in 2017, representing an increase of 3.4 million in the number of jobless people.
The number of unemployed persons globally in 2017 is forecast to stand at just over 201 million - with an additional rise of 2.7 million expected in 2018 - as the labour force growth outpaces growth in job creation, according to the report.
The ILO's World Employment and Social Outlook: Trends 2017 takes stock of the current global labor market situation, assessing the most recent employment developments and forecasting unemployment levels in developed, emerging and developing countries.
It also focuses on trends in job quality, paying particular attention to working poverty and vulnerable employment.
"We are facing the twin challenge of repairing the damage caused by the global economic and social crisis and creating quality jobs for the tens of millions of new labor market entrants every year,” ILO director-general Guy Ryder said in the report.
“Economic growth continues to disappoint and underperform, both in terms of levels and the degree of inclusion," he said, adding that it paints a worrisome picture for the global economy and its ability to generate enough jobs. "Let alone quality jobs. Persistent high levels of vulnerable forms of employment combined with clear lack of progress in job quality - even in countries where aggregate figures are improving - are alarming. We need to ensure that the gains of growth are shared in an inclusive manner."
The report shows that vulnerable forms of employment – that is contributing family workers and own account workers – are expected to stay above 42 per cent of total employment, accounting for 1.4 billion people worldwide in 2017.
“In fact, almost one in two workers in emerging countries are in vulnerable forms of employment, rising to more than four in five workers in developing countries,” ILO senior economist and lead author of the report Steven Tobin, said.
As a result, the number of workers in vulnerable employment is projected to grow by 11 million per year, with Southern Asia and sub-Saharan Africa being the most affected.
Turning to policy recommendations, the authors estimate that a coordinated effort to provide fiscal stimulus and an increase in public investment that takes into account each country’s fiscal space, would provide an immediate jump-start to the global economy and reduce global unemployment in 2018 by close to 2 million compared to our baseline forecasts.
However, such efforts should be accompanied by international cooperation.
“Boosting economic growth in an equitable and inclusive manner requires a multi-facetted policy approach that addresses the underlying causes of secular stagnation, such as income inequality, while taking into account country specificities,” Tobin said.

'Economic growth, job creation global issues'

Economic growth, reducing poverty and generating employment are the global issues at present, according to Federation of Nepalese Chambers of Commerce and Industry (FNCCI) vice president Shekhar Golchha.
Addressing the 105th meeting of the International Labour Organsation (ILO) plenary in Geneva today, Golchha said though the promulgation of new constitution in Nepal is a historic achievement, its implementation is the key to economic growth.
Though the devastating earthquakes of 2015 and border blockade has pulled down economic growth, private sector is committed to boost economy and generate employment, he said, adding that inclusive economic growth and creation of better jobs are the common concern and challenges of all. "To address these concerns, growth and expansion of economy is a must. High growth rate and generation of more jobs is possible only through additional investment. It is evident that attracting investment requires suitable policy and environment. Efficiency and competitiveness of enterprises can help them to provide improved working conditions," he added.
A Nepali delegation led by labour minister Deepak Bohara is participating in the ILO meeting in Geneva. Along with Golchha, FNCCI president Pashupati Muraraka and representatives of trade unions are also taking part in the meeting.
"Majority of least developed and developing countries have been suffering from the vicious cycle of low growth, low investment and unemployment. They lack appropriate policies and resources to increase economic growth," Golchha, who chairs the Employers' Council under FNCCI, said. "People's expectations have increased manifolds and it is not for countries like Nepal to respond to their expectations."
Golchha also said achieving social transformation is a complex task. "Besides, it requires sustainable growth of economy and appropriate policy measures to extend the coverage of social protection," he added.
Briefing the meeting about the latest development in Nepal, he also said that Nepal, for some years, has been experiencing the problem of low investment, low growth and low job creation. "Many factors like political instability, poor infrastructures and lack of suitable policy environment are some of the major factors that have been hindering economic development in Nepal," Golchha said, adding that the government has adopted the strategy of employment-led growth. "But due to many reasons, it has not been possible to achieve the goal."
On the occasion, he also highlighted the plight of Nepali migrant workers. "However, the repatriated remittance money into the country has contributed to the growth of economy significantly," he added. "Mobilisation of remitted money in productive sector and re-employment of returnees, now, has become a matter of debate."
Pitching for investment friendly environment, Golchha said formulation of suitable policy and environment are keys to attracting more investment.

Global unemployment rate projected to rise in both 2016 and 2017

Despite falling unemployment levels in some developed economies, new ILO analysis – World Employment and Social Outlook (WESO) – shows the global job crisis is not likely to end, especially in emerging economies.
Continuing high rates of unemployment worldwide and chronic vulnerable employment in many emerging and developing economies are still deeply affecting the world of work, warns a new International Labour Organisation (ILO) report.
The final figure for unemployment in 2015 is estimated to stand at 197.1 million and in 2016 is forecast to rise by about 2.3 million to reach 199.4 million. An additional 1.1 million jobless will likely be added to the global tally in 2017, according to the ILO's World Employment and Social Outlook-Trends 2016 (WESO).
“The significant slowdown in emerging economies coupled with a sharp decline in commodity prices is having a dramatic effect on the world of work,” says ILO director-general Guy Ryder.
“Many working women and men are having to accept low paid jobs, both in emerging and developing economies and also, increasingly in developed countries," he said, adding that and despite a drop in the number of unemployed in some EU countries and the US, too many people are still jobless. "We need to take urgent action to boost the number of decent work opportunities or we risk intensified social tensions."
In 2015, total global unemployment stood at 197.1 million – 27 million higher than the pre-crisis level of 2007.
The unemployment rate for developed economies decreased from 7.1 per cent in 2014 to 6.7 per cent in 2015. In most cases, however, these improvements were not sufficient to eliminate the jobs gap that emerged as a result of the global financial crisis.
Moreover, the employment outlook has now weakened in emerging and developing economies, notably in Brazil, China and oil-producing countries.
"The unstable economic environment associated with volatile capital flows, still dysfunctional financial markets and the shortage of global demand continues to affect enterprises and deter investment and job creation,” explains director of the ILO Research Department Raymond Torres.
“In addition, policy-makers need to focus more on strengthening employment policies and tackling excessive inequalities," he said, adding that there is much evidence that well-designed labour market and social policies are essential for boosting economic growth and addressing the jobs crisis and almost eight years after the start of the global crisis, a strengthening of that policy approach is urgently needed."
The authors of the WESO also document the fact that job quality remains a major challenge. While there has been a decrease in poverty rates, the rate of decline in the number of working poor in developing economies has slowed and vulnerable employment still accounts for over 46 per cent of total employment globally, affecting nearly 1.5 billion people.
Vulnerable employment is particularly high in emerging and developing economies, hitting between half and three-quarters of the employed population in those groups of countries, respectively, with peaks in Southern Asia (74 per cent) and sub-Saharan Africa (70 per cent).
Meanwhile, the report also shows that informal employment – as a percentage of non-agricultural employment – exceeds 50 per cent in half of the developing and emerging countries with comparable data. In one-third of these countries, it affects over 65 per cent of workers.
“The lack of decent jobs leads people to turn to informal employment, which is typically characterised by low productivity, low pay and no social protection," Ryder said, "This needs to change."
Responding urgently and vigorously to the scale of the global jobs challenge is key to successful implementation of the United Nations’ newly adopted 2030 Agenda for Sustainable Development,” he concludes.

नेपालीको क्रयशक्ति घट्दै, गरिबी बढ्दै

भारतले एक महिना अघिदेखि गरेको नाकाबन्दीका कारण नेपालीको क्रयशक्ति घटेको छ। नाकाबन्दीले निश्चित आम्दनी भएका, दैनिक ज्यालादारी तथा करारमा रहेका कामदारले आम्दानी मात्र गुमाएका छैनन्, चर्को मूल्यमा उपभोग्य वस्तु खरिद गर्न पनि उनीहरू बाध्य छन्।
आपूर्तिजन्य अवरोधका कारणले पेट्रोलियम पदार्थ तथा दैनिक उपभोग्य अत्यावश्यक वस्तु तथा सेवा उपलब्ध नहुँदा एकातिर मूल्यवृद्धि भएको छ भने अर्कोतिर निश्चित आम्दानी भएका, दैनिक ज्यालादारी तथा करारमा रहेका कामदारहरू काम नपाएर बेरोजगार हुनाले उनीहरूको आम्दानी घटेको छ। पूर्व अर्थसचिव रामेश्वर खनालका अनुसार यी दुवै कारणले नेपालीको क्रयशक्ति घटेको छ।
त्यस्तै, आपूर्तिजन्य अवरोधका कारण बजारमा कालोबजारी झन् बढेको छ। साधारण नागरिक हाल एक लिटर पेट्रोललाई ५ सय रुपैयाँसम्म तिर्न बाध्य छन्। त्यस्तै, व्यवसायीहरूले एक सिलिन्डर खाना पकाउने ग्यासलाई १० हजार रुपैयाँसम्म तिरेर पनि होटल सञ्चालन गरिरहेका छन्।
पूर्व अर्थसचिव खनालका अनुसार भूकम्पले विनाश भएका भौतिक संरचना त फेरि बनाउन सकिछ, तर हालको नाकाबन्दीले भने समग्र रूपमा नेपालीको आम्दानी घटाएको छ। 'लम्बिँदो नाकाबन्दीले गरिबीको रेखामुनि रहेको वर्ग सबैभन्दा बढी पीडित भएका छन्,' खनालले भने, 'भर्खर गरिबीको रेखाबाट माथि उठेको वर्ग पनि नाकाबन्दी कारण फेरि गरिबीको रेखामुनि झर्छ।'
आपूर्तिजन्य समस्या तत्काल समाधान भएर बजारमा वस्तु सहज रूपमा पाइन थाले पनि रोजगारी गुमाएकाहरूले तत्काल रोजगारी पाउने सम्भावना कम रहेकाले भारतको नाकाबन्दीले अर्थतन्त्रलाई दीर्घकालीन रूपमा अपूरणीय क्षति भएको खनालको भनाइ छ।
राजनीतिक नेतृत्व पूर्ण रूपमा बहिरो र अन्धो भएकाले विगत १०–१५ वर्षदेखिका योजना तथा रेमिटेन्सले धानेको अर्थतन्त्र विस्तारै 'कोल्याप्स' हुने बाटोतिर गइरहेको र देश असफल राष्ट्रतिर उन्मुख भएको वरिष्ठ अर्थशास्त्री विश्वम्भर प्याकुरेलको विश्लेषण छ। आपूर्तिजन्य समस्याले जनताको दैनिक जीवन संकटमा पर्दा पनि सरकार कानमा तेल हालेर बसेको भन्दै उनले सरकारको वैधानिकताको पनि संकट रहेको बताए।
'आपूर्तिजन्य समस्याका कारण बढ्दो मूल्यवृद्धि, घट्दो उत्पादकत्व तथा सरकारको वैधानिकताको संकटले नेपाल असफल राष्ट्रतर्फ उन्मुख भएको छ,' उनले भने, 'सरकारले जनतामा विश्वासको वातावरण बनाउन पनि सकेको छैन।'
यस्तै, तराई–मधेसकेन्द्रित दलद्वारा गरिएको आन्दोलनले तराई–मधेसमै चरम गरिबी बढ्ने देखिन्छ। प्याकुरेलका अनुसार स्रोतसाधनलाई बजारमा लगेर बेचेपछि मात्र त्यसले मूल्य प्राप्त गर्दछ। तर हालको आन्दोलनले तराई–मधेसका उत्पादनले पनि बजार नपाएकाले त्यहाँका जनता झन् गरिबीको चपेटामा पर्ने निश्चित छ। विश्व बैंकका अनुसार हाल नेपाल दक्षिण एसियामा तेस्रो गरिब मुलुक हो तर वैशाखको शक्तिशाली भूकम्प तथा हालको नाकाबन्दीले नेपाल दक्षिण एसियाकै सबैभन्दा गरिब मुलुक हुने सम्भावना बढेको पनि उनले बताए।
यसैगरी, भूकम्पले ७ खर्ब ५० अर्ब तथा हालको नाकाबन्दीले करिब त्यत्तिकै बराबरको क्षति भएको भन्दै उनले यी दुई घटनाले नेपालको अर्थतन्त्र बराबरको क्षति भएको बताए।
'नेपालको समग्र अर्थतन्त्रमा काठमाडौंको योगदान ३० प्रतिशत रहेकाले पनि हालको नाकाबन्दीले काठमाडौं बढी प्रभावित हुँदा देशको समग्र अर्थतन्त्रमै यसको असर पर्छ,' प्याकुरेलले भने।
नाकाबन्दीका कारण सिर्जित दैनिक उपभोग्य वस्तुको अभावदेखि घट्दो उत्पादन, अर्थतन्त्रमा दीर्घकालीन प्रभाव पार्ने राष्ट्रिय गौरवका आयोजनाको काम ठप्प, शिक्षा र स्वास्थ्य जस्ता मानवीय सम्पत्तिमा नकारात्मक प्रभावले दीर्घकालीन रूपमा अर्थतन्त्रको ढाड भाँच्ने राष्ट्रिय योजना आयोगका पूर्व सदस्य चन्दमणि अधिकारी बताउँछन्। 'नेपालले भारतप्रति अर्थिक तथा राजनीतिक रूपमा बढी नै निर्भर भएर सन्तुलित सम्बन्ध राख्न नसकेकाले अर्थतन्त्र धरासायी भएको छ,' उनले भने।

Ghale announces candidacy for NRNA president for second term

The incumbent president of Non-Resident Nepalese Association (NRNA) Shesh Ghale has announced his candidacy for the post of president for second term.
Addressing a meeting in London yesterday late evening, Ghale said that he is contesting for the presidential post in the 7th NRNA Global Conference to be held in Kathmandu from October 14 to 17 due to pressure from his friends. "There are many unfinished jobs," he said, adding that his continuation will help complete many unfinished jobs started by him.

On the occasion, Ghale, one of the successful businessmen and Australia-based billionaire, said that Nepal is passing through hard times after the devastating earthquakes and subsequent aftershocks. "Nepal needs to carry out reconstruction works effectively," he said, adding that the pending issue of migrant Nepali workers, knowledge and skill transfer, and construction of NRNA building are some of the unfinished jobs that need to be completed.
Thanking the government for providing citizenship to NRNs through new constitution, he said that the ball is now on the court of NRNs. "Now, it is the turn of NRNs to prove that we care for our motherland," he added.
Since its establishment, NRNA had been lobbying for dual citizenship. Though NRNs claim to have invested heavily in Nepal, there are only a few who have invested in their motherland.

Ghale, along with founding president Upendra Mahato, former president Jiba Lamichhane, incumbent vice president Bhawan Bhatta, and a couple of NRNs have invested in Nepal. Ghale is building a five-star hotel in Kathmandu. Prime Minister Sushil Koirala had laid foundation stone of the 17-storey five-star Sheraton Kathmandu Hotel in October last year.

The hotel is being built with investment of Rs 8 billion. The hotel, which is expected to come into operation in February 2018, is being built by MIT Group Holdings Nepal – a member of the Ghale Group of Companies – which has diverse businesses in Australia and other countries.
Ghale has also been appointed Nepal's special envoy for reconstruction in the aftermath of the devastating earthquakes that floored down thousands of houses, infrastructures and heritage sites.

Nepal, Qatar vow to clamp down on recruiters charging migrant workers

Qatar and Nepal vowed to clamp down on outsourcers that illegally took money from Qatar-bound Nepali migrant workers.
During a meeting today in Kathmandu with a visiting Qatari delegation led by labour and social welfare minister of Qatar Abdullah Saleh Mubarak Al-Khulaifi, Nepal asked to arrange for free of cost recruiting for Nepali migrant workers.
Nepali side led by state minister for labour Tek Bahadur Gurung asked Qatari counterpart to make it binding for employers to bear the commission paid to the recruiting agencies and agents in order to ensure cost-free hiring of Nepali migrant workers to Qatar.
Nepali migrant workers are forced to pay between Rs 70,000 and Rs 100,000 despite Qatar’s pledge to make recruitment cost-free for migrant workers. Though the government has allowed outsourcers to charge up to Rs 20,000 in fees, many recruiting agencies charge even for free visa and tickets for the second most lucrative destination for Nepali migrant workers.
Qatar has however, categorically said that its laws did not permit foreigners hired to work pay anything in the process.
Qatar – that needs more migrant workers for the 2022 FIFA World Cup projects – said that its companies bear all he expenses involved in hiring a migrant worker.
If any Qatari companies charge to hire migrant workers, they will be punished, Al-Khulaifi said, adding that all hiring and travel expenses for migrant workers are borne by Qatari companies.
But the migrant workers are forced to pay exorbitant fees as the government failed to monitor and punish the outsourcing agencies and agents. Gurung also promised to blacklist manpower companies that charge money.
Though no agreement was signed today, the second day of the delegation's four-day official visit to Nepal, both the countries discussed on providing 24-hour insurance to Nepali migrant workers, compulsory orientation before taking jobs and strengthening workplace safety and security.
“Qatar’s insurance policy covers only work-related and road accidents," Gurung said, adding that the government hass asked visitors to provide 24-hour insurance cover throughout the contract period. "Apart from insurance, Qatar has also pledged to address most of the issues related to migrant workers in its proposed labour law."
Qatar is working on new labour laws that is expected to address most of the challenges facing – migrant workers, including good living and working conditions, occupational safety and life insurance.
According to Foreign Employment Promotion Board, it has reimbursed – from Migrant Workers’ Welfare Fund – some 205 families of  migrant workers, who died in Qatar in the fiscal year 2013-14, some 110 in 2012-13 and some 130 in 2011-12. But most of the deceased migrant workers have not got proper compensation from the employer as the Qatari law does not cover insurance for workers dying of 'natural cause', cardiac arrest or suicide.
However, the failure of successive governments in creating employment in the country has forced the mass exodus of youth to the foreign jobs, lately.
Qatar – the second largest destination for Nepali migrant workers after Malaysia – has some 400,000 Nepalis working currently, according to the department. "In the last fiscal year 2014-15, some 128,874 Nepalis went to Qatar, up from some 90,935 in a fiscal year ago in 2013-14," according to the department.

Job creation critical for sustained economic progress for Nepal

Demographic trends show that Nepal needs to create 550,000 decent jobs every year, according to a report.

The number of young people of working age in Nepal is currently increasing by 550,000 a year, and by 2020 it will climb to 633,000 a year, the recent UNCTAD publication reported.

It also recommended that the new government rethink its growth strategy to ensure that growth creates employment opportunities for the young people – who are currently largely under-employed, or trapped in vulnerable, low-paid jobs – to improve the growth prospects of the economy.

The Least Developed Countries Report 2013, subtitled ‘Growth with Employment for Inclusive and Sustainable Development’, urged that there should be greater policy emphasis on employment generation as a central development objective. It also cautioned that otherwise, international migration or social and political instability may rise.

The Least Developed Countries (LDCs), including Nepal, face a stark demographic challenge, as their collective population – about 60 per cent of which is currently under 25 years old – is projected to double to 1.7 billion by 2050, stated the report. During the rest of the current decade, such poor countries would have to create around 95 million jobs to absorb new entrants to the labour market, and another 160 million in the 2020s.”
By 2050, one in four young people worldwide will live in an LDC, it said, calling for a break with ‘business as usual’ policies, and a shift toward policies aimed at spurring inclusive growth and the creation of more and better-quality jobs.

The report said that the globe’s 49 least developed countries, a category which includes Nepal, should take steps to improve GDP growth, via the generation of employment, particularly of decent work – work that pays a stable living wage and has safe employment conditions – and via investment to develop productive capacities – the capacities of economies to produce broader varieties of goods, and goods of greater sophistication and higher value.
For some years, UNCTAD has argued that improving productive capacities is the best, most stable long-term strategy for helping nations and peoples to escape poverty.

The Least Developed Countries Report includes key figures and trends which show that during the period from 2000 to 2012, employment growth in Nepal was 2.7 per cent per annum – a rate that surpasses the average population growth rate of 1.7 per cent, but has been well below Nepal's average GDP growth rate of 4 per cent in that period. “Like many other LDCs, Nepal saw more than a decade of what economists call ‘jobless growth’, it added.
Most working people in Nepal are employed in the agricultural sector. In 2013, it accounted for 71 per cent of total employment, down from 75 per cent in 2000. Industry accounted for 12 per cent of Nepal's total employment in 2013, an increase of two percentage points over the figure in 2000. Services accounted for 17 per cent of employment in 2013, also increasing its share in total employment by two percentage points. The figures revealed that structural transformation has been relatively slow in Nepal.

The report also cautions that while LDCs enjoyed relatively high gross domestic product (GDP) growth rates from 2002 to 2008, this economic progress did not translate into correspondingly increasing levels of employment.
Indeed, countries with faster GDP growth created relatively fewer jobs. However, economic growth which does not create decent jobs in sufficient quantity is unsustainable; and job creation without the development of productive capacities is equally unsustainable, the report contended.

Economic growth in LDCs has not been inclusive, and its contribution to poverty reduction has been limited, the UNCTAD report said. In addition, this growth has not generated enough ‘quality’ jobs – that is, jobs offering higher wages and better working conditions – especially for young people. In addition, people employed in vulnerable circumstances – those workers without formal work arrangements, decent working conditions, and adequate social security – still accounts for about 80 per cent of total employment in the LDCs.
Creating employment opportunities is critical because it is the best and most dignified route out of poverty, the report contended, adding that the primary employment challenge faced by LDCs is not unemployment, but rather the lack of inclusive growth and productive employment in sufficient volume to help the working poor. It is a major impediment to achieving the United Nations (UN) Millennium Development Goals (MDGs), and to plans to set the LDCs on a sustainable development path.
Finally, the report noted that he LDC population is not only growing rapidly, but is quickly urbanising. In the case of Nepal, the urban population is currently growing by 3.7 per cent each year, compared with a national average population growth of 1.2 per cent. It combination of factors makes the current decade critical for rectifying the employment situation in LDCs. At the same time as more of the LDC population than ever is entering the labour market, an increasing proportion of that labour force is working, or seeking work, outside the agricultural sector. A major problem with the current process of structural change in LDCs is that it cannot provide the surplus population released from agriculture with productive employment elsewhere, the report notes.

Online investment guide to Nepal

KATHMANDU: The Department of Industry and UNCTAD will launch on Thursday a web-based investment guide to Nepal. The iGuides platform (www.theiguides.org/nepal) provides investors online with updated and hard-to-find information on operating costs, wages, rents and taxes that can be inserted into an investor’s business model, as well as laws, procedures and useful contacts. The experiences of current investors in Nepal are also included. The iGuides replace UNCTAD’s previous practice of publishing paper investment guides for different countries, allowing significant cost and time savings and enabling governments to get the right information closer to the intended investor audience. Further, because governments are responsible for generating and updating content according to UNCTAD guidelines, the development of each country website within the iGuides platform ensures significant capacity-building in investment promotion.

Employment Fund to train 16‚000 youths

The Employment Fund in association with Helvetas Swiss Inter-cooperation Nepal is planning to train 16,000 Nepalis in 2014.

The training is expected to fulfill the growing demand for skilled youth labour force in country to some extent, said the Fund, adding that every year around 450,000 youths enter the labour market but are incapable of addressing the market needs because around 90 per cent of them are unskilled. "The Fund will train and employ 12,000 marginalised youth, who are in dire need and develop 4,000 youth as entrepreneurs, who can create employment later."

The Fund – after a survey on market demand for skill – determined the required skills to be provided to labour. It has selected 39 organisations across the country to provide training for the current year. They are also responsible for the job placement of trainees. The Fund also spends around Rs 50,000 per person in providing training, it added.

In the first phase of the programme, youths are provided with skills of their interest. "They will work as a paid employee during the training period and later establish their own business and generate employment for at least one another," according to the Fund that aims at generating 4,000 employers this year under the programme.

Likewise, the second phase focuses on marginalised youths – who are in extreme condition – including youths living with HIV, gender violence survivors, handicapped, street children and orphans, prisoners and former prisoners, bonded labourers and squatters. It plans to benefit 12,000 youth.

The Fund – since its operation in 2008 – has been benefiting around 70,000 youths of the country, out of which around 50,000 are in training related jobs, it claimed but the unemployment is rising.

It has provided 121 types of training till date, it said, reporting that on an average they are earning around Rs 5,500 per month. "Labours who have been employed for the past three years are earning Rs 10,000 on average."

Most of those who have quit their jobs despite the training are women due to pregnancy, low wage and family pressure, added the Fund that has categorised people earning less than Rs 4,600 per month even after the training as underemployed.

"People who earn around Rs 10,000 per month are not interested in foreign employment," according to team leader at the Employment Fund/Helvetas Swiss Inter-cooperation Nepal Bal Ram Paudel.

Last year around 35 per cent – of the 17,000 trainees – were self-employed, he claimed.

Unemployment rate in Nepal to increase: ILO

The International Labour Organisation (ILO) has projected unemployment rate to increase in Nepal.

The unemployment rate that stands at 2.69 per cent is projected to increase to 2.71 per cent in the year 2014 and 2.72 per cent a year next in 2015, according to a recent ILO report.

Though the unemployment rate of the international labour agency and ground level scenario does not match, unemployment covers people who are: out of work, want a job, have actively sought work in the previous four weeks and are available to start work within the next fortnight; or out of work and have accepted a job that they are waiting to start in the next fortnight, according to the ILO definition.

The unemployment rate is calculated according to percentage of economically active people who are unemployed on the ILO measure.

The employment is still focused around informal and agriculture work, which is generally poorly paid and lacks social protection, the annual report said, adding that more than three-in-four workers are classified as in vulnerable employment – in South Asia including Nepal – a proportion that has fallen only slightly in recent years. "Around one-in-two workers are in agriculture and only one-in-five receive a salary or wage."

According to the recent Agriculture survey of Central Bureau of Statistics (CBS), some 71 per cent of Nepalis are involved in subsistence agriculture.

Due to de-industrialisation in the country and subsistence agriculture, some 1,700 youths leave the country to Gulf and Malaysia in search of employment. Successive government's failure in commercialisation of agriculture has made the agriculture less attractive as it has lost competitiveness and detracted the youth from farm, though involvement of economically active population has seen increased in agriculture reducing the rate of unemployment to 2.69 per cent.