Gender, Age, and Provincial Labor Market Disparities in Nepal: Policy Insights for Federal Governance

Abstract

This study is about labor force participation, unemployment, and involuntary inactivity in the Nepalese economy on the basis of disaggregated data from the 2021 census. It employs a feminist economics framework to evaluate the labor market outcomes and gender-based inequalities among young Nepalese people across provinces. Analysis is done using descriptive statistics relying on census employment status data by disaggregating it by age, sex, and province. Findings indicate significant differences between men and women in their labor force participation, where men participate at a rate of 71.2 %, compared to women at 60.2 %, with very low participation among women in Madhesh Province (8 %). Unemployment and lack of economic activity are high among the young people, with young women being the most exploited by their socio-cultural practices and household duties. Regional inequalities are also prominent: Bagmati Province has a relatively higher rate of formal employment, but Karnali and Sudurpashchim have a higher rate of unemployment and underemployment. The findings show the necessity of gender reactive and region-specific employment policies, such as the elimination of structural barriers, and increasing vocational training and skills development. The research will add to the existing post-federal labor market research in Nepal and will guide specific policy interventions.