Nepal’s Struggles with Rising Unemployment

As immigrants crossing the open border aggravated the unemployment problem, the Border and Migration Report of Nepal, 1983, prepared by the task force led by Dr Harka Gurung, had recommended introducing compulsory work permits for Indians. However, due to strong opposition and protests in some Terai districts, the report was never implemented. Although there are no exact statistics, Nepal’s small job market is considerably dominated by Indian nationals, who do not require work permits. Because of their unhindered entry, a large number of Nepalis remain unemployed in their own country. The inflow of the Indian workforce has undoubtedly affected employment opportunities for Nepalis, but this is not the only reason; there are numerous other factors contributing to Nepal’s growing unemployment problem.