Nepal is facing a significant demographic shift, with 41 percent of its population aged between 16 and 40 years. While this presents opportunities for economic growth, it also poses challenges. The country’s labor market is marked by underemployment at 43 percent and is dominated by informal jobs, which account for about 90 percent of employment. Many young people, particularly from rural areas, end up in low-income or informal jobs, often outside the country. Women and disadvantaged groups are especially affected by limited access to quality training and employment opportunities.
A recent project, supported by the World Bank Group (WBG) and development partners such as the Swiss Agency for Development and Cooperation (SDC), the European Union, and the Asian Development Bank (ADB), has aimed to address these issues. The initiative incentivized equitable access to training, focusing on women and disadvantaged youth. It piloted programs that connected skill-building to employment through placement services, on-the-job training, and apprenticeships. The project also developed manuals to ensure minimum quality standards for training.
Partnerships were key to the project’s implementation. The SDC led third-party monitoring efforts, emphasizing not just participation numbers but also the quality and relevance of the training programs. Support from these partners helped Nepal’s Ministry of Education, Science and Technology (MoEST) develop the National TVET Sector Strategic Plan (2023–2032), creating a national framework for skill development.
The project introduced gender-focused incentives, such as higher payments to trainers who enrolled women in short-term vocational courses and special initiatives to encourage female participation in non-traditional trades like plumbing and carpentry. As a result, women made up 61 percent of all short-term trainees.
A trainee from Madhesh Province shared his experience: “I am the eldest of seven siblings. Our family relied on the earnings of my father from farming, which was not sufficient. I took the computer training offered by EVENT following which I could find employment in many places. I now teach computers in three schools and earn Rs. 20,000 per month. I am proud to be able to take up responsibilities as the eldest son and can support the education of my siblings and household expenses.”
Lessons from the project highlight the importance of evidence-based design and strong monitoring and evaluation systems. These approaches led to improved access to market-relevant training and better employment outcomes for women and disadvantaged groups.
Looking ahead, Nepal’s Country Partnership Framework for 2025-2031 identifies the need to create more and better jobs for youth, addressing internal and international migration driven by lack of opportunities. The World Bank Group and the ADB plan to continue supporting skills development programs aligned with labor market needs. Future efforts will likely focus on strengthening foundational, digital, and soft skills, as well as building partnerships with industries to expand apprenticeships and on-the-job training.
For more details, see the press release: World Bank to Continue Support for Technical Education and Vocational Training in Nepal.