Kathmandu - As Nepal prepares to graduate from the Least Developed Country (LDC) category in November 2026, a newly released employment impact assessment has highlighted both promising opportunities and potential risks for the country’s labour market.
The study, titled “Employment Impact Assessment on Nepal’s LDC Graduation,” was jointly launched by the International Labour Organization Nepal and the National Planning Commission. The report provides an evidence-based analysis of how Nepal’s graduation from the LDC category may influence the country’s economy, exports, and employment landscape between 2026 and 2030.
According to the assessment, some export-oriented sectors could face a decline of up to 4.3 percent after Nepal graduates from the LDC status, primarily due to the gradual loss of preferential trade benefits currently available to least developed countries. The report warns that women workers and informal labourers could be disproportionately affected if adequate preparation and policy interventions are not implemented in time.
However, the study also emphasizes that the transition presents an important opportunity for Nepal to strengthen its economic foundation. With timely investments in skills development, industrial competitiveness, trade facilitation, and value chain improvements, the graduation could become a catalyst for sustainable economic growth and decent employment opportunities.
Speaking at the report’s launch event, Numan Özcan, Country Director of the International Labour Organization for Nepal, stressed that the graduation should be viewed as the beginning of a new phase rather than the end of development support.
“Graduation is not an end. It is a transition into a more competitive environment, with fewer international support measures and higher expectations,” Özcan said, emphasizing the importance of early preparation to safeguard jobs and strengthen enterprises.
Similarly, Prakash Kumar Shrestha, Vice-Chairperson of the National Planning Commission, stated that the commission ensured the report aligns with Nepal’s Nepal’s 16th Plan, which prioritizes employment creation and economic resilience.
Shrestha noted that Nepal’s upcoming graduation marks a historic milestone for the country. However, he emphasized that coordinated policy efforts will be essential to mitigate potential challenges such as export losses and to strengthen domestic employment opportunities.
The report calls for stronger collaboration among government institutions, the private sector, workers’ and employers’ organizations, and development partners to ensure a just and inclusive transition. Such cooperation, the report concludes, will be crucial to protecting jobs, improving labour productivity, and building a resilient labour market in the post-LDC era.
As Nepal approaches its LDC graduation deadline in November 2026, policymakers and stakeholders are increasingly focusing on strategies that can transform the milestone into a pathway toward sustainable development, inclusive growth, and quality employment.
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