Causes of Unemployment in Nepal

Causes of Unemployment in Nepal

Unemployment is a significant issue in countries such as Nepal. A variety of factors can cause unemployment. However, the following are some of the most important causes:

1. High population growth rate: Most developing countries, including Nepal, are experiencing rapid population growth. Because the country's economic activities cannot keep up with population growth, unemployment results and high population growth can be controlled by providing women with employment opportunities, population education, and family planning options for married couples, among other things. However, developing countries like Nepal need to control their high population growth rates. As a result, the issue of unemployment arises.

2. The slow pace of economic growth: The Nepalese economy is underdeveloped, and growth is slow. This means that as the population grows, the economy cannot meet the demand for employment, and people cannot find work. As a result, economic growth should be increased to reduce unemployment. For long-term unemployment reduction, economic growth must be accelerated and made sustainable. However, developing nations are unable to do so. As a result, there is an unemployment problem.

3. The slow pace of industrial development: One of the causes of unemployment is the slow pace of industrial development. There is no increase in employment opportunities in the non-agriculture sector in Nepal due to a lack of rapid development in the industrial sector. As a result, the problem of unemployment and underemployment in the agricultural sector persists. Compared to urban areas, rural areas primarily face the problem of underemployment due to a lack of agricultural sector employment alternatives.

4. Seasonal Agriculture: Agriculture employs the majority of Nepalese people. Agriculture, on the other hand, is seasonal and subsistence-oriented. Agriculture is becoming less commercialized. Agricultural productivity is low due to bad seeds, traditional production methods, a lack of irrigation facilities, and other factors. As a result, there is underemployment and disguised unemployment in the Nepalese agricultural sector.

5. Unequal distribution of land: Uneven land distribution in developing countries such as Nepal is another source of unemployment. As a result, many farmers lack adequate access to land, which is a critical asset for agricultural production and employment. Land holing is becoming more common due to the pressures of rapid population growth. It has further restricted formers' access to land. As a result, many agricultural self-employed people have become unemployed or underemployed.

6. Use of capital-intensive techniques: Capital-intensive production techniques are to blame for the slow growth of employment. Labour-intensive techniques are less productive than capital-intensive techniques. As a result, firms or producers prefer to use highly capital-intensive production techniques. It replaces a large number of workers, causing them to become unemployed.

7. Lack of infrastructures: Roads, power, telecommunications, highways, irrigation facilities in agriculture, financial institutions, and other infrastructure are required to expand employment opportunities. Inadequate infrastructure availability is a significant impediment to creating opportunities for productive employment. However, we need to develop infrastructure sufficiently.

8. Less saving and investment: In developing countries such as Nepal, capital is scarce. Investment in goods and services necessitates a large amount of capital. Saving is required for investment. However, in Nepal, saving is insufficient. Inadequate saving results in insufficient investment. Due to a lack of savings and investment, employment opportunities cannot be created.