Kathmandu. Nepal is in the process of being upgraded to a developing country from least developed country by November 2026.

As the country is upgraded to a developing country, it will have an impact on employment as well as the overall economy. The International Labour Organization (ILO) has published a report titled “Employment Impact Assessment of Nepal’s LDC Upgrade”.

The report warns that both exports and jobs will be at risk. To reduce the risks to both exports and employment, Nepal needs to increase investment and pay attention to economic competitiveness. According to the report, about 132,000 jobs could be lost in Nepal in the next five years and an economic loss of about $ 1 billion.

About TAG_OPEN_p_21 67,000 men and 65,000 women will be unemployed during this period. The reason for this is that the business facilities available under the LDC have been removed. According to the report, the biggest job loss is estimated to be in the production-based industries. About 1,42,000 jobs could be affected.

It is estimated that the employment loss of both men and women in the manufacturing sector is almost equal. The report expects a 2.5 percent to 4.3 percent decline in total exports. Export-oriented sectors such as textiles, textiles and carpets will be affected.

Women who are more involved in the textile and textile sector will be the first to be affected.TAG_OPEN_p_20 Workers in the informal sector are also at high risk. The report shows that trade facilitation through policy exercises, increasing investment in tourism and information technology sectors can reduce the impact on GDP and create jobs.

TAG_OPEN_p_19 The report estimates that GDP will shrink by $851 million in 2026 alone. Real GDP is expected to fall by $398 million in 2026 and $63 million in 2030. That could lead to a total loss of $988 million over five years.

In normal terms, Nepal’s economy is expected to grow to $22 billion in 2026 and $29 billion in 2030. The average economic growth rate will be around 5 percent. Total exports are expected to decline by 4.3 percent in 2026.

The industrial sector, in particular, will be the hardest hit, with a 76 per cent decline in 2026. Although the service sector got some benefits in the beginning, it has to suffer losses later.

The study warns that if Nepal does not immediately pay attention to improving production capacity, developing skilled manpower, export diversification and strengthening industries, the impact of LDC upgradation will be more severe.

Nepal can create more than 1 lakh 11,000 jobs if it increases investment in tourism.