As the world braces for a profound shift in how and where we work, Nepal faces a decisive moment. The World Economic Forum’s Future of Jobs Report 2025 projects that by 2030 the global economy could create 170 million new jobs even as 92 million are displaced, a net gain of 78 million. Equally striking, 39 percent of workers’ core skills are expected to change, with demand surging for AI, big data, network security, and “human” skills such as creativity, resilience, and lifelong learning.
This global trend presents both a risk and a rare opportunity for Nepal. On the one hand, much of its workforce remains in agriculture or manual jobs, sectors relatively shielded from automation. According to an IIDS analysis, more than 60 percent of Nepali workers are in such roles, limiting immediate exposure to AI-driven disruption. But that very structure poses a danger: without stronger digital skills and capacity, Nepal risks being left behind in the emerging, high-value global economy.
To its credit, Nepal has taken a first major step. In August 2025, the government approved its first-ever National AI Policy, outlining institutional frameworks for AI governance, data standards, research, and innovation. The policy emphasizes investing in human capital, expanding high-speed internet (including fiber and 5G), and building data centers—foundational moves if Nepal is to compete in the future.
But policy ambitions are only half the battle. A deeper look at Nepal’s labor market and digital readiness reveals serious gaps.
Despite rapid growth in ICT, Nepal struggles with low adoption and weak digital infrastructure. Only about 37.8 percent of households had internet access in recent years, and computer usage remains low. High costs, frequent outages, and limited rural coverage further constrain digital potential. Meanwhile, traditional employment is shrinking. A 2025 report shows full-time, regular jobs declined sharply last year, while outsourced and contract work surged. The General Federation of Nepalese Trade Unions reported that nearly 15 percent of workers were employed via outsourcing agencies in 2024, up from under 10 percent the previous year. Without adequate protections, many of these workers remain vulnerable, lacking social security, job stability, or long-term career pathways.
At the same time, Nepal’s young, tech-savvy population is increasingly turning to the gig economy. Ride-hailing, food delivery, and freelancing platforms are now major employment drivers—especially for youth from rural and semi-urban areas. But turning gig work into meaningful, sustainable livelihoods requires more than access to a smartphone; it demands investment in skills and regulatory protections.
Here’s what Nepal must do, urgently and resolutely, to realize the promise of the future of work:
Scale up reskilling and upskilling
The AI policy rightly emphasizes skill development, but success hinges on execution. Nepal needs large-scale, coordinated training initiatives, backed by government, the private sector, and international partners, to build both technical and human skills. This includes AI, cybersecurity, and data analysis, as well as creative thinking, adaptability, and emotional resilience.
Strengthen digital infrastructure
To enable AI-driven work, Nepal must invest aggressively in broadband expansion, data centers, and reliable power. The digital divide remains wide, especially in rural regions. Without removing infrastructure bottlenecks, even well-trained workers will struggle to access global markets or contribute to high-value data work.
Protect and empower non-traditional workers
As outsourcing and gig work grow, labor laws must evolve. Contract and remote workers should have access to social protections, fair wages, and pathways to reskill. Labor inspection must improve; Nepal currently has fewer than 20 inspectors for a vast workforce, undermining enforcement.
Leverage foreign partnerships and diplomacy
Nepal should use its diplomatic networks to attract investment in the digital economy, negotiating partnerships for AI research, data infrastructure, and training with development banks, foreign tech firms, and donor agencies. Labor agreements should also incentivize diaspora professionals to return and contribute their skills.
Implement the AI policy with rigor and accountability
The AI policy proposes an AI Regulatory Council, data governance frameworks, and capacity-building institutions. These must be backed by clear funding, regular reviews, and accountability mechanisms. Without enforcement and institutional capacity, the policy risks remaining aspirational.
Nepal’s relatively low exposure to automation today may provide temporary breathing room, but that is not a sustainable strategy. The real question is whether the country will turn this period of protection into long-term competitive advantage. With proactive, well-coordinated policy, investment, and diplomacy, Nepal can be more than a low-cost outsourcing base, it can become a meaningful participant in the global, AI-driven economy.
The window is small, and the stakes are high. Nepal must act now, thoughtfully, boldly, and together, to ensure its future of work is not only safe, but prosperous.
