Bridging the Skill Gap among Rural Youth and Women in Nepal

Nepal is undergoing a demographic transition-41 percent of its population is in the age group-between 16-40 years. This offers both a promise and a challenge. The country's youth bulge contrasts with persistent underemployment at 43 percent and a labor market dominated by informal employment, which is about 90 percent of all jobs. Most new labor market entrants, especially rural migrants, find themselves in low-income, informal jobs or unskilled work abroad. These trends are compounded by inequities in access to quality training, skill upgradation, and employability, particularly for females and socially disadvantaged groups.

WBG Approach

The project incentivized equitable access to trainings, especially for women and disadvantaged youth. It piloted initiatives to bridge the gap from pre-employment skill building to employment through placement services, on-the-job trainings, and apprenticeships. Manuals were also prepared for minimum quality assurance standards of the training. Partnerships, particularly with the Swiss Agency for Development and Cooperation (SDC), focused on third-party monitoring, highlighting not just on numbers but the quality and the market relevance of the trainings. Support from development partners including the European Union, Asian Development Bank (ADB), SDC, and the World Bank, helped Nepal's Ministry of Education, Science and Technology (MoEST) develop and approve the National TVET Sector Strategic Plan (2023-2032), which provided a cohesive national framework for skill development.

Contribution to WBG Targets and Jobs

The project prioritized gender-focused incentives. For instance, there were higher payments for trainers for enrolling female youth and women in short-term vocational trainings. A special window was set up to encourage women's participation and training in non-traditional trades like plumbing, carpentry, and construction. As a result, females made up 61 percent of all short-term trainees under the project. The project contributed to the WBG's jobs agenda by building a more skilled labor force, which was attuned to the current and future skills and labor market needs.

"After taking the training on sewing, I not only learned and utilized new skills but was also able to provide employment to other local youth by setting up my own business. I earn up to Rs. 45,000 per month and am now financially independent. I have also earned the respect of my family and community, which has provided a significant boost to my self-confidence"

Anita Chaudhary, Sudurpashchim Province, Trainee, EVENT II

"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."

Ravikumar Yadav, Madhesh Province, Trainee, EVENT II

Lessons Learned

Project design based on evidence and experience leads to effective implementation and significant results, achieving both scale and impact. Activities supported by the project were field-tested through previous implementation experiences and similar programs by other development partners. Performance-based funding offers versatility and flexibility for various development objectives, but it requires robust monitoring and evaluation (M&E). The strong M&E focus establishes transparent and credible accountability mechanisms. The project significantly improved access to market-relevant trainings and labor market outcomes, especially for females and disadvantaged groups, as measured by their enrollment, completion, and employment and self-employment results.

Next Steps

Nepal's Country Partnership Framework (2025-2031) highlighted the lack of economic opportunities and jobs for youth, which drives internal migration to the capital and international migration to India and other countries. Aligning with the CPF's outcome of more and better jobs, programmatic support is planned to develop essential skills to respond to labor market needs, productive livelihoods, and local and global employment. The WBG and the Asian Development Bank aim to work closely to articulate a comprehensive skills development agenda and requisite financing. To boost the efficiency and productivity of the working population, including informal workers, youth, and women, efforts will likely focus on strengthening foundational skills, digital skills, and soft skills such as teamwork and collaboration. Additionally, the WBG will aim to foster partnerships with industries to implement and scale up apprenticeships and on-the-job trainings, targeting crucial skills demanded by employers.

More information:

Press Release: World Bank to Continue Support for Technical Education and Vocational Training in Nepal