Currently, around 350,000 youths enter the domestic job market every year. But not even one-third can find decent works. [break]
As a result many either stay unemployed or find odd jobs in the informal sector. Others become migrant workers seeking green pastures in Gulf countries or Malaysia.
So far, people working aboard have been making great contribution to the country. Estimates say the money remitted by these migrant workers contribute to 25 percent of the GDP.
“This may have caused the balance of payment to remain in surplus (of over Rs 75 billion) at the moment,” Vaidya said, delivering the opening remarks at the annual general meeting of the FNCCI in Kathmandu on Friday.
“But this contribution comes with huge social and economic costs, like shortage of productive workforce that the country needs to pursue economic development. And such losses will have far reaching implications on the entire development process, which remittances cannot compensate in the long run,” Vaidya told the meeting, indicating sending Nepalis abroad to keep the economy afloat is not a zero-sum game.
“That´s why the main challenge faced by the country today is job creation,” Vaidya said.
His prescription to revive the job market was investment. And he put the figure at “40 percent of GDP”. This amount, he said, will put the economy back on 7 percent growth rate trajectory and create sufficient jobs.
According to Vaidya, the investment that the country needs can be domestic or foreign. “Actually it does not matter,” he said, urging political parties not to indulge in petty disputes when issues of foreign investments in mega projects like hydropower are raised. “After all foreign investors can´t take away (hydropower) projects from Nepal,” Vaidya quipped.
Prime Minister Babu Ram Bhattarai, who was the chief guest at the meeting, said he was always willing to help the private sector in whatever way to ensure economic development process does not hit roadblocks.
“I know there are problems in the bureaucratic system,” he said, without elaborating but citing example of the state´s inability to purchase two aircraft for the national flag carrier Nepal Airlines Corporation despite three years of effort. “But I am accessible. So please come directly to me if there are problems.”
He also shared views of Vaidya on negative impacts of the state´s inability to create sufficient employment opportunities. But he asked the private sector not to complain too much and float concrete ideas to take this challenge head-on. “If we work seriously, we can create ample jobs in the country within next five years and put a halt to labor flight,” the PM said.
B Muthuraman, president of Confederation of Indian Industries, delivering his key-note speech said although job creation and education should remain the priority of the government it should not forget about attaining an inclusive growth. “This is essential to maintain peace in the society,” he said.
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