KATHMANDU, Aug 12: The world is observing International Youth Day today, Wednesday, under the United Nations theme, “From Clicks to Progress: Youth Digital Pathways for Sustainable Development". The theme highlights young people’s shared aspirations across different social, economic and geographical backgrounds, including quality education, decent jobs, participation in decision-making and the opportunity to build a better future.
In Nepal, a youth-led Gen Z movement took place last September. The federal election held in February subsequently handed executive power to the younger generation. Becoming a leader is not enough. Turning youth aspirations into reality, ensuring meaningful participation, developing skills and providing equal opportunities have become the biggest challenges for the government and Prime Minister Balendra Shah.
At 36, Shah heads the government at a time when young Nepalis expect visible progress in good governance, employment, corruption control, technology-driven public services and equal access to opportunities. Young people are watching the government closely.
Youth power and opportunity
Nepal is at an important stage of its demographic transition. According to the United Nations, around 5.7 million Nepalis are aged 15 to 24, accounting for about 20 percent of the population. Under Nepal’s broader definition, which considers people aged 16 to 40 as youth, the share rises to around 43 percent.
Nepal could benefit greatly from this large working-age population, but the demographic dividend will not last forever. Without adequate investment in education, skills, employment and productive sectors, today’s working-age population will eventually become an ageing population without having generated sufficient economic gains.
The government introduced a national youth policy last year to address young people’s needs and role in national development. It recognises youth as active partners in development and prioritises education, skills, employment, entrepreneurship, leadership development and social participation.
Biggest challenge: Youth migration
The most pressing challenge is the continuing exodus of young people. Thousands leave the country every year in search of jobs and opportunities. While migration and remittances provide immediate support to the economy, the departure of productive workers also creates a serious shortage of human resources at home.
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Government data show that an average of around 750,000 Nepalis left the country annually for foreign employment between 2021 and 2025. Around 100,000 young people also leave each year for education.
Rather than trying simply to stop young people from going abroad, the government needs to create conditions that make staying in Nepal a viable choice. Agriculture, information technology, tourism, the green economy, innovation and small and medium enterprises offer significant opportunities for youth participation and investment.
The National Planning Commission is preparing a national employment policy aimed at creating 100,000 jobs for young people annually, according to Geh Nath Gautam, administrative chief of the National Youth Council.
“Government alone cannot create employment. Its role is to facilitate the process. The private sector has a major role to play,” Gautam said.
Widening gap between aspirations and opportunity
The UNFPA’s Demographic Future Survey, released last month, collected the views of more than 108,000 internet users aged 18 to 39 across 73 countries and regions.
The survey found that young people around the world continue to aspire to meaningful lives, stable relationships and, for many, families and parenthood. Yet they are making important life decisions amid growing uncertainty. Rising housing costs, economic insecurity, conflict, inequality and rapid technological change are affecting how young people imagine and plan their futures.
The key question is not whether young people value relationships, marriage and parenthood. It is whether they have the social and economic conditions needed to achieve those aspirations.
Economic security, stable employment, affordable housing and social support all influence major life decisions. The findings point to a widening gap between what young people want and the opportunities available to them.
The survey also suggests that demographic trends should not be examined in isolation. Governments need to address the conditions shaping young people’s choices, including secure employment, affordable housing, accessible childcare, gender-equal parental leave, flexible working arrangements and broader equality.
These findings are particularly relevant to Nepal. A lack of jobs and economic security is pushing large numbers of young people abroad. The more important question, therefore, is whether young Nepalis can find the education, employment and economic conditions they need to build the lives and futures they want.
Turning youth into a development force
Experts say Nepal must focus on employment generation, better education and skills, meaningful youth participation, innovation, entrepreneurship and the use of knowledge and capital held by Nepalis abroad.
Investment in productive sectors must rise to absorb the young people entering the labour market every year. That cannot happen through government action alone. Strong cooperation between the public and private sectors will be essential.
Traditional education is also unlikely to meet the demands of a changing global labour market. Nepal needs to align education and skills training with emerging employment opportunities.
Expectations from the new government are particularly high. Yet questions are already being raised over its performance after four months in office.
Shankar Shrestha, chief adviser to Youth, Labour and Employment Minister Ramji Yadav, says the government is working to strengthen governance and create the foundations for economic growth and employment.
A national employment policy is being drafted, while the National Youth Council Act is also being amended. The changes are expected to support implementation of last year’s National Youth Policy.
The government is also preparing to bring the youth self-employment programme under the new legal framework. Nepal already has the Foreign Employment Promotion Board, but a similar institution could help promote employment inside the country, Shrestha said.
The government has a major opportunity before it. If it can turn Nepal’s large youth population into a productive force, the demographic dividend could accelerate economic development. If it fails, the same youth population could instead become a source of frustration, unemployment and migration.
