World Bank Report Highlights Demographic and Labor Challenges in Nepal

A new World Bank report stated that Nepal must improve job creation, skills, and social protection to better utilize its working-age population. The report also noted that while remittances account for around 25 per cent of Nepal’s GDP, returning migrant workers often earn less than other workers, indicating their overseas experience is not translating into higher domestic productivity.

The report projects that Nepal’s working-age population will peak in 2047, and the country is expected to become an ageing society by 2059. This demographic shift, coupled with issues like low female employment and uneven healthcare access, requires reforms to convert remittance income into long-term economic gains.