Over 111,000 beneficiaries in Nepal have been trained in market-relevant short-term vocational skills through five rounds of project-supported programs, with 85 percent of trainees being women or youth from disadvantaged backgrounds. Approximately 77 percent of participants secured wage employment or self-employment within six months of completing training, earning between Rs 10,000–35,000 per month—well above the rural living wage of Rs 18,525. More than 5,000 students from 150 institutions received job placement support through resume workshops, interview preparation, business and life skills training, and employer engagement via job fairs. Selected trainees also participated in one-year on-the-job training and two-year apprenticeship programs to bridge the employability gap and gain market-relevant experience.
Nepal’s demographic transition presents both opportunities and challenges, as 41 percent of the population is aged 16–40. However, underemployment remains high at 43 percent, and about 90 percent of jobs are informal. Many new labor market entrants, especially rural migrants, find themselves in low-income or unskilled work abroad. These challenges are compounded by inequities in access to quality training and skills development, particularly for women and socially disadvantaged groups.
The project emphasized equitable access to training, particularly for women and disadvantaged youth, piloting initiatives that connected pre-employment skill building with employment through placement services, on-the-job training, and apprenticeships. Manuals were prepared to ensure minimum quality standards for training, and partnerships with organizations such as the Swiss Agency for Development and Cooperation (SDC) emphasized both the quality and market relevance of programs. Development partners, including the European Union, Asian Development Bank, SDC, and the World Bank, supported Nepal’s Ministry of Education, Science and Technology (MoEST) in developing the National TVET Sector Strategic Plan (2023–2032), providing a cohesive national framework for skills development.
The project also prioritized gender-focused incentives, offering higher payments to trainers enrolling female youth and women and encouraging participation in non-traditional trades such as plumbing, carpentry, and construction. As a result, 61 percent of all short-term trainees were female. By aligning training programs with current and future labor market needs, the project contributed to the World Bank Group’s jobs agenda, building a skilled workforce ready to meet market demands. Success stories, such as that of Ravikumar Yadav from Madhesh Province, illustrate the tangible impact of these programs, where trainees have gained employment, increased income, and improved household livelihoods.
Lessons learned from the project highlight the importance of evidence-based design, robust monitoring and evaluation (M&E), and performance-based funding to achieve scale and impact. The project demonstrated significant improvements in access to market-relevant training and labor market outcomes for women and disadvantaged groups, measured by enrollment, completion, and employment or self-employment rates.
Looking ahead, Nepal’s Country Partnership Framework (2025–2031) identifies the need to expand economic opportunities and jobs to reduce internal and international migration. Future programmatic support will focus on developing essential skills to meet labor market demands, foster productive livelihoods, and enhance local and global employment. The World Bank Group and the Asian Development Bank plan to strengthen foundational, digital, and soft skills among youth, women, and informal workers, while promoting partnerships with industries to scale up apprenticeships and on-the-job training, targeting the critical skills sought by employers.
