Jobs at Risk

A week after violent Gen-Z protests swept across Nepal, leaving 12 Bhat-Bhateni Supermarket outlets completely destroyed, the country’s largest retail chain announced that it would not lay off any employees. Bhat-Bhateni Chairperson Min Bahadur Gurung also said that the company will provide salaries and festive bonuses to all employees of these outlets despite losses running into billions of rupees from vandalism, looting, and arson.

 

Bhat-Bhateni’s decision has been widely praised as exemplary. But workers in other sectors hit by the unrest may not be as fortunate. While no official announcements of mass layoffs have been made, business groups estimate that damage to private establishments across the country has affected 10,000–15,000 jobs.

 

The hardest-hit sectors include hospitality, retail, finance, media, telecom, and transportation. Experts warn that while the disruption to employment may be temporary, long-term consequences could arise if businesses fail to recover quickly.

 

Twenty-one out of 28 outlets of Bhat-Bhateni, which employs about 10,000 staff, suffered damages. Nine have already resumed operations despite vandalism, while 12 were completely destroyed by fire. Although roughly 5,000 employees were directly affected, the management has pledged to reassign them to other branches immediately.

 

The hotel and hospitality sector also suffered heavy losses. According to the Hotel Association Nepal (HAN), about 2,000 jobs were impacted when 25 hotels sustained damage. Large conglomerates such as CG Holdings, CG Electronics, CG Automobiles and KTM Steel—employing around 5,000 workers collectively—were also affected. Vandalism at the Chandragiri and Maulakalika cable cars disrupted operations, impacting another 600 jobs. With employment opportunities already scarce at home, analysts warn the unrest could push more Nepali youth abroad. For decades, young people have boarded flights from Tribhuvan International Airport to the Gulf, Malaysia and South Korea in search of work. Between 2008/09 and 2021/22, more than 4.7 million labor permits were issued to Nepalis for overseas jobs. In just the past three fiscal years, another 1.4 million permits were granted.

 

Last year alone, the Department of Foreign Employment issued 839,266 labor permits—the highest on record. Although the numbers dropped briefly during the COVID-19 pandemic, when 166,698 permits were granted, it rebounded sharply. The actual figures are if people leaving the country through informal channels are also included. This relentless exodus lays bare Nepal’s inability to generate enough decent jobs for its youth.

 

Streets on Fire, Futures in Flux

 

Frustration boiled over on September 8 and 9 when Gen Z protesters took to the streets across the country. Anger over rampant corruption and the sudden ban on more than two dozen social media platforms drew thousands into the capital and major cities. Dozens were killed when clashes turned deadly. Parliament was stormed. Police stations, hotels, supermarkets and international brands such as Hilton Kathmandu were torched and looted.

 

The protests toppled KP Sharma Oli’s government—but they also toppled confidence. Not only in politics, but in Nepal’s ability to provide jobs and attract investment. With GDP per capita at just $1,447 and the World Bank estimating that 82% of workers are in informal employment, many Nepalis feel trapped. For them, migration is not a choice but survival.

 

 

If foreign confidence was shaken, domestic jobs were devastated. Factories, showrooms, hotels, and supermarkets employing tens of thousands were destroyed.

 

Sur Krishna Vaidya, Vice President (Industry and Commerce) of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), who visited several destroyed businesses, said he was touched by the resilience of the business community to bounce back stronger. “What I saw was that morale had not collapsed. Even with thousands of employees affected, owners said they would not lay off staff. Bhat-Bhateni, for instance, pledged to keep Dashain bonuses intact,” Vaidya said. “But for international investors, Hilton’s destruction was a strong signal. The government must send a clear message of stability to restore confidence.”

 

Vaidya added that the private sector is committed to recovery. “We’ll rebuild better than before. But the government must act fast—form a full cabinet, provide credit and show the world that Nepal is safe for business.” Without such reassurance, he warned, foreign direct investment will continue to decline.

 

The risk of mass layoffs is not hypothetical. During the four-month nationwide lockdown to contain the spread of COVID in 2020, 22.5% of employees in manufacturing and service sectors lost their jobs, according to a Nepal Rastra Bank study. Two-thirds of them were contract or temporary workers. The hotels and restaurant, and SMEs sector laid off most of their employees.

 

Aspirations Without Opportunities

 

Jeevan Baniya, Deputy Director of Social Science Baha, said the protests were born out of contradiction. “Poverty has gone down, but youth unemployment has risen, especially in cities. Leaders mired in corruption scandals failed to deliver jobs or self-employment opportunities," he said. "Gen Z grew up online, seeing how the world is changing. But in Nepal, those aspirations hit a wall. That mismatch fueled the protests.”

 

He warned that the unrest could accelerate out-migration, just as the 2015 earthquakes and the COVID pandemic did. “Investment is no longer secure. The tourism and services sector, where millions work, are heavily hit. Without new jobs, more youths will leave,” he added.

 

The lesson, according to Baniya, is stark. "In a country with weak governance and fragile institutions, every shock—whether a natural disaster, pandemic, or political crisis—triggers a fresh wave of labor migration," Baniya added.

 

A Reputation at Risk

 

Nepali workers abroad have long been valued for their honesty and hard work—a reputation that has helped secure employment across the Gulf and beyond. But the September chaos can erode that trust, according to migration expert Rameshwar Nepal.

 

“The unrest may deter international investors. Multinationals have stayed away since the Maoist war. Without reforms, only irregular migration channels will grow—and that brings trafficking risks. Nepal urgently needs labor diplomacy with partners like the UAE to protect worker opportunities and reputation,” said Nepal. "Last year, 839,000 labor approvals were issued. But if formal channels close, desperate workers will fall into the hands of traffickers.”

 

 

Equally troubling is the impact on investment. Attacks on private businesses could discourage domestic investors and drive foreign ones away. With vital government offices, including the Office of the Investment Board Nepal, damaged or destroyed, potential investors are likely to wait until after the parliamentary elections before making commitments. In the meantime, businesses may turn increasingly to outsourcing. A new General Federation of Nepalese Trade Unions (GEFONT) report shows the trend rising sharply. According to the Labor Audit, 2024, the share of workers employed through outsourcing firms climbed to 14.91% in 2024 from 9.93% in 2023 and 7.30% in 2022. This shift away from regular employment undermines labor protections and collective bargaining.

 

Recent labor statistics show that the share of regularly employed workers dropped from 59.72% in 2023 to 53.35% in 2024. Part-time work surged from 5.52% to 8.58%, signaling a growing preference for flexible arrangements.

 

GEFONT’s audit also revealed systemic violations of labor laws. According to the report, 21.7% of industries failed to pay the legally mandated minimum wage.

 

Impacts of Prison Break

 

The protests also exposed Nepal’s governance failures. On September 9, amid the chaos, about 15,000 prisoners escaped. About a two-thirds of them are still at large. The jailbreak has already triggered visa restrictions for Nepali people.

 

Rajendra Bhandari, former president of the Nepal Association of Foreign Employment Agencies, said that jailbreak has already led to visa restrictions. “More than 14,000 prisoners escaped. Many of them are still on the run. In other countries, even one escape is serious," Bhandari said. "Now UAE has stopped issuing visit visas. Employment visas are stalled. South Korea and Portugal are cautious. Nepal’s image has been damaged as a security risk, and that will have a big impact.”

 

He added that vandalism also shocked observers worldwide. “The arson on supermarkets, hotels and offices showed a lack of basic ethics. When it was broadcast globally, it reinforced perceptions of instability. That is why labor destinations are becoming more cautious with our workers,” added Bhandari. For a country where remittances make up more than a quarter of GDP, the consequences are severe. A drop in labor approvals could slash household incomes, push families into debt and deepen rural poverty.

 

Uncertain Future

 

Migration researcher Meena Poudel says the protests will not immediately affect migration numbers, since labor migration is planned months in advance. But she fears the political vacuum and entrenched corruption will worsen exploitation.

 

“When ministries are leaderless, manpower companies monopolize. Fraud, trafficking and informal channels rise. Youth already see a labor market controlled by syndicates, with no space for them. Social media inspires them, but opportunities are absent," Poudel said. "This frustration is not unique to Nepal—it is global. But here, neglect makes it more explosive.”

 

She added that uncertainty also weighs on families left behind. “Parents, spouses and children are left in limbo. Migration delays, visa blocks and corruption in the labor market deepen social depression,” Poudel added.

 

Nepal At the Crossroads

 

Businesses destroyed in Kathmandu will be rebuilt sooner or later, but investor confidence may take years to recover. Foreign job markets remain open—for now—but with growing caution.

 

For the country’s Gen Z, the choice between staying home and leaving feels starker than ever. As Baniya cautions, without jobs and reforms, “these youths will not stay here".

 

The protests may have brought down a government, but the bigger question is whether they will also accelerate an exodus. For now, airport queues remain long, rural villages continue to empty and the dreams of a generation are being packed into suitcases bound abroad.

 

Labor Migration Sees Sharp Shift Toward Semi-Skilled and Professional Workers

 

In recent years, Nepal has witnessed a striking shift in the composition of its labor migration. While the majority of workers abroad remain in traditional low-skilled categories, semi-skilled and professional segments are expanding at a far faster pace.

 

Between FY 2020/21 and FY 2024/25, the number of semi-skilled migrants surged from just 15,583 to nearly 100,000—a staggering 540 percent increase. Even more dramatic was the rise in professional migration, which grew from a modest 246 to 4,372, representing a 1,677 percent jump. High-skilled migration, though smaller in absolute terms, expanded from 61 to 937 workers, marking growth of over 1,400 percent.

 

This rapid expansion signals a new phase in Nepal’s labor export profile. Increasingly, the country is sending not only construction workers and security guards but also nurses, accountants, engineers, and IT professionals. Training programs at home, greater access to digital platforms, and growing international demand for healthcare and technology services have all contributed to this trend.

 

The data suggests that Nepal is gradually positioning itself as a source of knowledge and service professionals, moving beyond its traditional identity as a supplier of low-wage labor.

 

Hundreds of Nepalis are leaving the country every day through Tribhuvan International Airport, driven by the stark reality that earning a living at home remains difficult. With limited job opportunities, more and more people—especially young workers—are compelled to seek employment abroad.

 

This outmigration is costing Nepal a significant portion of its youthful labor force. And it’s not just unskilled workers leaving; a substantial number of skilled and semi-skilled individuals are also seeking better prospects overseas.

 

According to the Department of Foreign Employment, 839,266 Nepalis went abroad for work in FY 2081/82 (2024/25). Of these, 937 were categorized as highly skilled (692 men and 245 women). An additional 4,372 took up professional-level jobs, including 3,749 men and 623 women. The number of semi-skilled workers was also substantial, totaling 99,723—more than 90,000 of them men.

 

A large share of migrants had acquired skills before departure. In the same fiscal year, over 506,000 youth with skill training left the country—447,000 men and 59,754 women.

 

Yet a concerning trend is the growing number of workers migrating without any skill training. More than 220,000 untrained individuals went abroad last year, including 202,000 men and 24,000 women.

 

The proportion of unskilled workers in the foreign labor market has risen sharply. In FY 2080/81 (2023/24), unskilled laborers accounted for 19.6 percent of all migrant workers. That share jumped to 27.1 percent in 2081/82 (2024/25), despite government pledges to expand pre-departure training programs.

 

Nepali workers were employed in 151 countries via formal channels last year. The majority went to traditional labor destinations such as the UAE, Saudi Arabia, Qatar, Kuwait, and Malaysia, although 12 countries each received just one Nepali worker.

 

While the department keeps records of those who leave, there is still no definitive data on how many return or permanently settle abroad. What is evident, however, is that labor migration continues to rise—not just to Gulf nations but increasingly to European countries as well.

 

Between FY 2020/21 and FY 2024/25:

• Semi-skilled migration surged from 15,583 to 99,723 (+540%).

• Professional migration rose from 246 to 4,372 (+1,677%).

• High-skilled migration jumped from 61 to 937 (+1,436%).

 

This report was originally published in October 2025 issue of New Business Age magazine.