Number of regular employment opportunities decreases as labor supply increases.

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In Nepal, the number of workers employed in regular employment has decreased by 10.84% compared to the previous year. This decline is attributed mainly to labor outsourcing practices.

A recent labor audit report presented by the General Federation of Nepalese Trade Unions (GEFONT) highlighted this decrease in the number of workers in regular employment compared to the previous year. In the 2080 analysis, 59.72% of workers were engaged in regular employment, but in 2081, this figure dropped to 53.35%.

Vinod Shrestha, the president of GEFONT, pointed out that the increase in the number of workers actively engaged in employment through labor outsourcing companies has contributed to this decline. Additionally, the reservation of foreign employment opportunities has also been identified as a factor leading to the reduction in regular employment.

According to the report, companies utilizing labor outsourcing services provided minimal basic facilities such as low wages and lack of overtime pay to workers, with only 72.6% compliance in 2080. However, this year, compliance has further decreased to 77.2%.

The labor audit report, compiled from 327 organizations including production-based industries, garment, textile, hotels, trekking, travel, printing press, cooperatives, private hospitals, private schools, construction, and labor-supplying companies, sheds light on the status of labor law implementation.

Ramesh Khatri from Kansai Nepal News views the challenges arising in the implementation of labor laws as an ongoing issue. He also emphasizes the need to address the exploitation of labor by outsourcing companies as a critical concern.

Labor and Employment Offices have been conducting inspections, and GEFONT has been engaging in discussions with workers to conduct further analysis and publicize labor audit reports.

The report indicates that in the previous year, 61.19% of workers were actively employed, whereas this year, the figure stands at 51.05%. Moreover, the percentage of workers engaged in temporary employment has increased from 52.97% to 58.08% this year.

In conclusion, the report reveals a decrease in the number of companies hiring workers through employment agreements or appointment letters, dropping from 65% to 60.1% this year. Ramesh Khatri points out that this analysis underscores the need for effective oversight and enforcement by labor inspection agencies to address these issues effectively.


Author: MAYA | HARUTO
Posted at: April 30, 2025 3:02 am