Impact of labor cuts in major destination countries, shrinking opportunities for Nepalis

According to the Department of Foreign Employment, the number of foreign employment in the financial year 2079/80 was 771 thousand 327. In the last financial year, only 741 thousand 297 people went abroad for employment.

In the last financial year, the number of workers who returned after renewing their contract with the old employer and returning to work abroad with a new labor permit (contract agreement for the first time) is only 460,000, of which only 360,000 go to the Gulf and Malaysia . Apart from that, 100,000 people have gone to Europe and East Asia. The number of workers who returned to the same company and the country after renewing their labor is 281 thousand . "Countries like Qatar and Malaysia have stopped hiring workers as they did in the previous year," said Gurudatta Subedi, spokesperson of the department.

The United Arab Emirates (UAE) is currently the country that provides the most employment for Nepal. Last year, the UAE employed 131,000 institutionally and individually. 81 thousand people went to Malaysia, 73 thousand to Saudi Arabia, 40 thousand to Qatar, 28 thousand to Kuwait, 14 thousand to Croatia, 12 thousand 800 to South Korea, 12 thousand 700 to Romania, 10 thousand 500 to Japan and 6 thousand to Maldives. Compared to 2079/80, the number of Nepali workers going to UAE, Saudi Arabia and Croatia among the main destinations has increased in the last financial year. Along with Malaysia and Qatar, the number of people going to Kuwait has also decreased.

Malaysia is a country with an industrial economy based on exports, due to the decrease in international trade, there are only workers returning to Malaysia instead of going to Malaysia. - Dilliprasad Paudel, former Nepalese ambassador to Malaysia

The main reason for the decrease in the emigration of Nepali workers is in the industry, factories and service sectors there. Experts have stated that there is a widespread labor cut . Dilliprasad Paudel, former Nepalese ambassador to Malaysia, said that since two months, Malaysia has stopped taking workers from all source countries. Malaysia is an export-based industrial economy. Now the decrease in international trade has a direct impact on Malaysia . There has been a significant decrease in the sales distribution of the goods produced by Malaysia in the international market. The industries are keeping the workers they have as much as possible," said Paudel, who returned to Nepal last Wednesday according to the previous government's decision to return the ambassador. "There are no workers going to Malaysia now. There are only workers returning from Malaysia.'

Dubai city of UAE. Photo: Reuters

In the fiscal year 2079/80, 219,000 Nepalis went to Malaysia for the first time through labor contracts, which was 28.39 percent of the total number of foreign workers. Last fiscal year, that number dropped to 81 thousand. This is only about 11 percent of the total number of foreign employment. Former ambassador Poudel predicts that the next year will decline even more. "There is no immediate increase in employment in Malaysia," he said.

40 thousand 517 Nepalis went for employment in Qatar, another main labor destination for Nepalis in 2079/80. 40,000 Nepalis went in the last fiscal year. This number is expected to decrease further next year. Former Ambassador Naresh Vikram Dhakal said that there is no immediate opportunity for employment opportunities for a large number of Nepali workers in Qatar. Qatar has not made a new project after the 2022 FIFA World Cup. There is no situation where big projects will start immediately like before. The existing jobs are also being lost," he said, "There are no jobs in the construction sector. Rather, it appears in the service sector . According to him, the companies in Qatar have started sending workers to Saudi Arabia. "Unskilled and semi-skilled workers do not have the same opportunities as before," he said.

Unless we can develop the IT sector including hydropower, tourism, raw material-based cement, medicine, employment cannot be provided in Nepal . - Vishwa Paudel, Former Vice President, National Planning Commission

Recently, the number of Nepalis going to UAE for the service sector has increased. With the ease of personal access, moving to UAE does not have to rely solely on manpower companies . According to Meghraj Sapkota, Chairman of the Federation of Nepalese Journalists UAE, the number of workers there has increased through labor permits and visit visas. Foreign investment has increased in the UAE. Which has started to create more opportunities in the service sector," he said. He said that the UAE has prioritized numerical balance in its policy regarding migrant workers, so the door of opportunity has opened for Nepalis.

Migrant workers including Nepalis working in the construction sector of UAE. File photo: Kantipur

Vishwa Paudel, the former vice-chairman of the National Planning Commission, says that even though the employment opportunities in the major destination countries have decreased, there is no need to panic as the overall regional balance is maintained. "The foreign employment opportunity for Nepalis still seems to remain". Although opportunities have shrunk in major countries like Qatar and Malaysia, they have grown rapidly in countries like UAE and Kuwait. It seems to balance the employment opportunities within the Gulf region,' he said, 'Moreover, opportunities are increasing in countries like Romania, Croatia and Japan.' We have more unskilled and semi-skilled manpower. This kind of manpower has no skills, no language, low income,' he said, 'There is no employment opportunity for this kind of manpower in our internal labor market . They are getting opportunities for foreign employment. 885,000 people listed in the list of unemployed through the local level do not have skills. "We need a job market for young people who don't have skills," said Paudel, "Until we can develop the IT (information technology) sector, including hydropower, tourism, raw material-based cement, medicine, then decent employment cannot be given to the manpower available in the labor market."

There is a risk that there will be no job creation in the country and the reduction of workers abroad will have an impact on Nepal's economy. According to Rashtra Bank, the remittance inflow has reached 13 trillion 27 billion rupees till last May. That is why the country's foreign currency (exchange) reserves are constantly making new records. Remittances have an important contribution to the country's economy. Experts suggest that the investment environment in the country should be emphasized as the number of people going to work abroad is decreasing. "There is no environment for investment in the country". Revenue collection is worse than before. In such a situation, how can employment be created within the country?' Paudel said, 'In such a situation, the shelter of our manpower increases in foreign employment.' To prevent this from happening, private and government investment should be increased.'

Nepali workers on their way to Malaysia at Tribhuvan International Airport. File photo: Upasana Khadka, founder director of Kantipur

Migration Lab, says that one should not only look at how many people are going abroad in terms of foreign employment. What jobs did they get? What are their employers? How much is the service? Is there a situation to develop skills? It should be seen whether there will be more talent development in the future,' she said. It will be beneficial if the young people who have the opportunity of foreign employment earn attractive income, learn new skills, and contribute economically and socially even after returning to Nepal Said not to be . "Nepal is already saying that it should find an alternative to the Gulf". As soon as there is an impact in one area, Nepal has to bear the consequences," he said. "Now the state should facilitate the sending of workers to Europe. A policy of accepting institutional demands should be adopted.'