Kathmandu: On 9 September, as smoke rose from the parliament building in Nepal’s Kathmandu, Gen Z protesters chanted slogans not just against the ban on social media but against something far deeper.
For Nepal’s Gen Z, blocking of social media may have lit the spark, but the fuel was years of frustration—crumbling economy, rising unemployment, corruption and a future that feels possible only outside their own country.
With labour migration experts underlining that one in five young Nepalis is unemployed, the country’s demographic dividend is becoming a demographic dilemma.
This is the first time that Nepal’s youngest generation, born after the 1996-2006 civil war and ensuing democratic transition, has erupted on the streets at scale.
Unlike their parents, who endured monarchs and Maoist takeover, these protesters are digital natives who are angry, impatient, and perhaps disillusioned.
While for the outside world, the protests may have looked as one for free speech online, the reality is that it was about survival.
Addressing widespread corruption and unemployment is a top priority for Nepal’s new leader, 73-year-old former chief justice Sushila Karki, who was sworn in as interim prime minister on 12 September.
Her predecessor K.P. Sharma Oli resigned on 9 September after Gen Z’s protests.
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Problem of unemployment
Sagar Giri, a 29-year-old, left Nepal in 2024, hoping to build a better life abroad. After struggling to find stable work in Kathmandu, he was offered a job in an Australian warehouse through a Nepali agent. But it was a false promise.
“The agent arranged a tourist visa, with assurances that it would be converted to a student visa upon arrival. That never happened,” Giri told ThePrint over phone. Now, his visa has expired, and he lives in Australia under a protection visa, a temporary status for those seeking refugee-type asylum in the country.
In Nepal, if a youngster is not already abroad, they are either preparing to leave, or saving up to send a family member.
Every year, 5 lakh youth enter the labour market in Nepal, but only about 10 percent find work, Keshav Bashyal, a senior academic at the nation’s Tribhuvan University and labour migration expert, told ThePrint.
“It’s obvious. Nepal lacks employment opportunities. We don’t have industries that can absorb or properly employ the youth. Even those who are employed are largely in the informal sector without job security, contracts or social protections.”
According to the latest Nepal Labour Migration Report 2022, Nepal’s overall unemployment rate is around 12 percent and above 20 percent among youth.
Once India was the destination of choice, but now Nepalis migrate across the Gulf, Malaysia, South Korea, Cyprus, Malta and Eastern Europe.
Australia is home to 1,79,050 Nepalis, making the community the 9th largest migrant group in the country. In the US, Nepalis have been the fastest-growing Asian immigrant population, rising from 51,907 in 2010 to 2,05,297 in 2020.
Bashyal said that in the past decade, migration from Nepal has only seen an upward growth. Nepalis are working in at least 150 countries, yet Nepal has bilateral labour agreements with fewer than 10 percent of these destinations.
In FY 2024-25, Nepal’s remittance inflows rose sharply to NPR 1,356.6 billion by mid-May, marking a 13.2 percent increase from the same period last year. This was more than 25 percent of the GDP. But while remittances pay for imports and keep the Nepalese rupee afloat, they also mask political and economic failures.
For the young, every departure stamp on a passport is also an indictment of a system that failed to provide opportunities at home.
For the women, it is harder, as the government has put several age-related restrictions on those going abroad for work, in a bid to “protect” them.
Returning migrants also face high unemployment, creating a labour pool for foreign countries and making the “migrant Nepali” a growing domestic political issue.
Sagar Giri’s struggles began in Nepal. He completed high school studying business management and tried to find work locally.
“I applied for jobs, but the salary was around 10,000 to 15,000 NPR. I couldn’t survive on that,” he said. He even bought a motorbike to start a small resale business, “but it didn’t even cover pocket expenses”. Desperate, Giri migrated to the Gulf, earning around 50,000-60,000 NPR per month, before returning to Nepal in 2021, only to find no opportunities, he said.
“There are no real opportunities in Nepal,” he added. “If you don’t have connections or sources, you don’t get jobs.” With four family members to support, staying in Nepal wasn’t an option for him.
The Nepal government’s minimum wage stands at less than NPR 20,000 (INR 12,500) per month, and even that is inconsistently enforced. In contrast, similar work abroad offers two to three times the pay and often better working conditions.
“For the same job that might pay less than 20,000 rupees in Nepal and often not even the legal minimum wage, youth can earn double or triple abroad. That’s the real reason they go,” Bashyal said.
Migration remains the only alternative for the majority. They often pay NPR 3,00,000-8,00,000 through manpower companies linked to political elites, many ending up with fake contracts, dangerous jobs, or no protection abroad, according to labour experts.
Economic constraints
Nepal’s market is highly competitive, compounded by open borders with India, making it difficult for local industries to thrive. Most businesses struggle to turn a profit, so those with capital prefer trade or real estate over industrial investments. Only a handful of industrial enterprises exist, and overall domestic opportunities remain limited.
Industrial stagnation, small market size, and lack of long-term investments mean there are few opportunities for young people.
“Earlier, most went abroad for 3D jobs—dirty, difficult, dangerous—but now even educated Nepalis are heading overseas for skilled roles in accounting and services,” Kuvera Chalise, an editor for Nepal Khabar who writes extensively on the country’s economy, told ThePrint.
Moreover, the startup culture remains minimal. A few young entrepreneurs are attempting to launch ventures, but numbers are small and survival is tough. Without meaningful government support or structural reforms, the country struggles to create viable alternatives to migration.
Relying on remittances also exposes households to global economic fluctuations. Most of the migrating population hails from provinces like Madhesh and Province 1 (Koshi), with districts such as Dhanusha, Siraha, Mahottari and Jhapa topping the list, according to the labour report.
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Migration patterns and social dynamics
Earlier, most Nepali migrants landed in India, initially for construction work. Now, migration includes care work, domestic services, hospitality and skilled roles abroad. A new trend has Nepalis training in Indian restaurants before migrating to Japan, where their skills are highly valued, Bashyal noted.
Nepalis can obtain work visas abroad with ease, much more so than citizens of neighbouring countries like Bangladesh.
Combined with low local wages which are often below the government-mandated minimum, overseas work is far more attractive.
The largest number of Nepalis working abroad is still in India, at around 10 lakh, because migration is easier, cheaper and less regulated. Many use India as a stepping stone, then move to Europe, Japan, or other countries, according to Bashyal.
But migration patterns also vary by province; western Nepal sees more movement to India, while provinces like Madhesh have comparable migration rates.
Social networks in Indian cities such as Mumbai and Bangalore make it easier to find work, according to Bashyal.
Today, seven countries—Qatar, Saudi Arabia, Bahrain, Kuwait, Oman, UAE and Malaysia—host 80 percent of Nepali migrants, a report by International Labour Organization states.
Remittances have turned out to be Nepal’s largest source of foreign exchange, lifting families out of poverty.
A 2021 Nepal central bank paper showed that households receiving remittances were 2.3 percent less likely to be poor, and a 10 percent rise in inflows reduces the risk of falling into poverty by 1.1 percent. However, higher consumption fuelled by remittances has also driven up import costs.
But there is another crisis. According to experts, despite structured frameworks, the migration system is rife with corruption and exploitation.
‘Political failure’ and manpower monopoly
“Thirty-five years ago, during absolute monarchy, you couldn’t even get a passport without palace approval. After 1990, democracy opened the borders, and globalisation made the world one village. Coming to Kathmandu for a job or going to Qatar became the same thing. Migration became part of the political system,” Meena Poudel, feminist sociologist and migration expert, told ThePrint.
But Nepal failed to manage this transition. “We created policies that allowed people to leave, but we never built systems to protect them once they did,” Poudel said.
Following the democratic transition in Nepal, access to passports and labour permits became easier, opening up newer destinations for work. This shift led to a surge in migration to Malaysia, the Gulf countries, and South Korea as these were the regions that offered formal contracts, higher wages than Nepal, and legal channels for labour migration, she noted.
In the 2000s, labour migration became a structured, state-regulated phenomenon, with the government facilitating overseas employment through bilateral agreements and labour recruitment agencies.
But despite the Foreign Employment Act, policies failed to ensure safe migration abroad and domestic jobs remained in short supply. The existing frameworks rather entrenched corruption, monopolisation and political favouritism.
The government’s limited intervention ceded control to private manpower companies, which are over 900 in Nepal and often tied to political parties, she told ThePrint.
“Many manpower companies are tied to politicians, forming a recruitment nexus that prioritises profits over worker safety,” she said.
She added that there are now even Dalit and Madhesi manpower companies catering to the marginalised sections, but they are all tied to political parties.
The manpower companies not only pay taxes but also fund political campaigns, ensuring protection in return. This “recruitment nexus” facilitates a trafficking pipeline where desperate youth are often deceived, sold into abusive jobs, or trapped in debt, Poudel highlighted.
Informal migration to India bypasses scrutiny but comes at high costs, where migrants pay up to NPR 8,00,000 (INR 5,00,000), often mortgaging family land, according to Poudel.
At destinations, some are abandoned to local mafia, while Nepali embassies often deny aid to undocumented migrants. Returning migrants face social stigma and debt, deterring them from coming home despite hardship.
“Many migrants leave on the wrong visa type, like tourist visas, and find themselves bound to three-year contracts with no freedom to return even in emergencies. Their passports are confiscated, and they endure abusive conditions. Nepal’s government lacks the capacity to negotiate better terms abroad,” she said.
Political interference ensures manpower companies benefit while workers bear the risks. Agents exploit rural populations through local leaders and informal networks. Families sell land or take loans in hopes of a better life, only for migrants to face dangerous working conditions, injuries, and no compensation. Deaths among migrant workers continue, yet remittance inflows are celebrated while human costs are ignored, the experts noted.
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The human cost
Nepal Labour Migration Report 2022 highlights that while remittances topped NPR 1 trillion, 1,395 Nepali workers died abroad in 2021-2022 alone. Reintegration programmes are underfunded and poorly coordinated.
Further, up to 82 percent of Nepal’s workforce is engaged in informal employment, and one in five Nepalis aged 15-24 is unemployed.
“Labour migration touches nearly every Nepali family. Yet men dominate, and women face higher risks. Without strong bilateral agreements and reintegration policies, we are just recycling migration without protecting our people,” Poudel said.
Domestic wages and opportunities cannot compete with the prospects abroad. Yet, remittances sent home by migrants sustain the local economy, funding consumption, imports, and taxes, and creating a small ecosystem that keeps local markets afloat. Without these remittances, Nepal’s economy would face severe constraints.
“Officially, remittances account for more than 25 percent of Nepal’s GDP, but that only includes formal migration. The informal and unrecorded flows—especially with India—are much larger, possibly pushing migrant contributions to over 50 percent. Yet, politicians ignore this reality because acknowledging it means tackling uncomfortable truths and powerful vested interests, leaving millions of unemployed youth with no real options at home or abroad,” Poudel underlined.
What comes next
The change in government in Nepal this month has sparked cautious optimism.
“Political will can generate hope. If the youth believe the state is trying, even small steps like skill training or startup support can inspire them to stay,” Bashyal said.
Editor Chalise highlighted the need to promote private enterprises, encourage foreign investment, and nurture startups and SMEs so young people can create opportunities at home.
Bashyal stressed that change must also tackle agriculture and land management.
“People believe in agriculture, but it has to be modernised including organic farming, joint farming and integrating livestock. For that, land management policy has to be reorganised. It’s not just about money, it’s about creating a proper system.”
Poudel noted the importance of linking small industries to markets. In Jumla and Humla (remote areas in far west Nepal), farmers grow apples and provide dairy, but have no way to sell their products. “Policy has to connect directly to people’s lives, not just corporate houses,” she said.
According to Bashyal, what is needed is an integrated policy: one that ties labour diplomacy, protection mechanisms, youth employment plans, agriculture and education together.
“Students get Bachelor’s or Master’s degrees but no skills. I teach at Kathmandu University— so many of my students just want to fly out, because the degree means little at home,” he said.
Another aspect, according to the experts, is that Nepal’s government lacks labour diplomacy. It has no real power or strategy to negotiate with destination countries like Kuwait or Saudi Arabia. Embassies are under-resourced and disconnected from migrants’ realities.
“A better alternative would be G2G (government-to-government) agreements, especially for vulnerable sectors like domestic work. Models like Israel, Korea and Japan have shown that G2G systems can protect workers better. Similarly, Nepal should negotiate sector-specific labour agreements. for example, with Malaysia for security guards, Qatar for construction, and UAE for hospitality,” Poudel said.
The real challenge, however, is manpower companies and their political allies’ control over migration.
Many former ministers and parliamentarians have deep ties with these agencies. Policy decisions are influenced by these networks, not by what’s best for migrants. This lack of accountability and regulation fuels smuggling and trafficking, the experts underlined.
Poudel said the Gen Z protests show that youth are tired of empty promises and exploitation.
“Migration should not be the only option for survival. Without proper planning, accountability, and protection, Nepal’s migration system will continue to exploit its youth while benefiting only a few powerful actors,” she rued.
While a six-month interim government cannot solve these issues, Bashyal sees hope in young leaders. “Young people are not going to let the old leaders sleep. They must challenge outdated leadership and take control of their parties. Otherwise, Nepal risks plunging into another long cycle of instability.”
Yet, for now, the exodus continues. As one Pokhara-based driver recalled about returning to Dubai where he has been working since 2008: “I hope the change in government creates opportunities. But I will not return. Here, I wait. There, I work.”
(Edited by Nida Fatima Siddiqui)
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