- Immigrant Times
- Oct 26
- 6 min read
Updated: Oct 29
NEPALI MIGRATION
Young Nepalis support their country and families by working abroad
Remittances from hundreds of thousands of Nepali migrants make up more than a quarter of the nation’s GDP
By The Immigrant Times
Every year, hundreds of thousands of young Nepalis apply for jobs abroad (Photo: Anup Kaphle)
October 2025: Every year, hundreds of thousands of Nepali men and women leave home in search of better opportunities abroad. For the Himalayan nation of Nepal, migration is not just a personal choice; it is a major economic strategy and social challenge. This article explores what kinds of work Nepali migrants do abroad, how remittances affect families and the economy, whether migrants settle or return, and whether recent political and economic turbulence is reshaping the patterns.
Destinations and types of employment
While migration to neighbouring India is long-standing and, because of the open border between the two countries, informal, the dominant recent pattern is labour migration to the Gulf and Southeast Asia. According to government figures, more than 80 per cent of Nepali workers with foreign-employment approvals go to the six GCC (Gulf Cooperation Council) countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates) plus Malaysia. In 2021/22, for example, about 80 per cent of new migrant approvals were to Saudi Arabia, Qatar and the UAE.
In terms of the types of employment, many Nepali migrants take on jobs that are semi- or unskilled, often in the ‘3D’ sectors (dirty, difficult, dangerous). Construction, hospitality and security services feature heavily in Gulf destinations; in Malaysia and other Asian countries, similar work is common. In more informal India-bound flows, Nepalese often work in casual wage labour, security, hotels/restaurants or agriculture.
Back in Nepal, domestic employment opportunities remain limited for many young people, wages are low, informal work is widespread, and agriculture remains vulnerable to climate and terrain. Overseas work offers markedly higher pay (despite risks) and the hope of remittances. Migration has become a key strategy for household survival, especially in rural and semi-rural communities.
Remittances
Remittances from Nepalis working abroad are a major driver of Nepal's economy, accounting for about 22-25 per cent of the country's Gross Domestic Product (GDP). From mid-July 2024 to mid-June 2025, remittance inflows reached US$11.25 billion, a 12.7 per cent increase. In the first two months of the 2025-2026 fiscal year (mid-July to mid-September 2025), remittances increased by 27.6 per cent year-on-year, reaching $2.52 billion. In the first month of the same fiscal year (mid-July to mid-August 2025), inflows were up 25 per cent, totalling $1.27 billion. (Source: Nepal Rastra Bank)
For individual households, the impact is huge: a recent study in an agrarian district found that nearly 95 per cent of households with migrant members depended on remittances for income; almost 79 per cent used some of the money for children’s education, while 97 per cent used some it for debt repayment.
These remittances help families meet basic needs, access health care, pay for schooling and sometimes invest in housing or land. A longer‐term econometric study found there is a long-run relationship between remittances and economic growth in Nepal, though it cautioned that the boon may not automatically translate into sustained development unless the funds are used productively.
At the same time, there are downsides. A large share of remittances is used for consumption rather than productive investment. Families become reliant on migration, and the risk is that if job opportunities abroad dry up, or if migrants return without savings, the economy and households are left vulnerable.
Returning home
One of the key questions for migration is whether Nepali migrants leave home with the intention of settling permanently abroad, or of temporarily working and then returning home. The dominant pattern appears to be temporary or circular migration rather than upfront settlement. For the bulk of labour migrants, this is the pattern: Go abroad, work for some years, send remittances, then return. The country’s census and migration studies support this: in the 2021 census, ‘absent population’ (Nepalis working abroad) constituted about 7.4 per cent of the country’s population.
Nevertheless, return does not always translate into successful reintegration. One study found that among returnees, about 56 per cent were either unemployed or out of the labour force, and over 75 per cent of those who did work were in informal self-employment. Many migrants end up re-migrating because livelihood opportunities at home are limited. A recent project aimed at reintegration (the ‘ReMi’ project) describes key ‘moments that matter’, from decision to leave, migration experience, return and reintegration, and highlights how gaps in policy, stigma, lack of employment and mental‐health burdens hamper return.
Thus, while some Nepalis may settle abroad (especially if they acquire permanent residency or migrate for reasons other than labour), for most, the pattern remains: work abroad, send money, optionally return, with considerable uncertainty around the return being permanent and well-rewarded.
The impact of recent political and economic instability
How has political or economic unrest in Nepal affected migration? While specific data linking unrest to migration decisions are so far limited, a few themes emerge.
First, the structural push factors remain strong: Weak job creation, low wages, under-employment and economic stagnation. For instance, the latest macro-economic report shows Nepal’s growth remains modest (4-5 %) and job creation is insufficient, meaning that the migration push remains.
Second, the recent rise of youth protests and demands (notably the ‘Gen Z movement, those born between 1997 and 2012) highlights deeper discontent with nepotism, corruption and lack of opportunity at home. While these do not yet show up in migration statistics explicitly, they reinforce the narrative that staying in Nepal may feel like a less attractive option for many young people.
Third, in destination countries, there have been changes too: remittances reached record highs in 2025. This surge reflects increased outbound migration (506,000 first-time foreign employment approvals in the 2025 financial year) and improved income/dollar conversion. There is evidence that migration flows are diversifying beyond the traditional Gulf/Malaysia corridor into Japan, South Korea and some European countries.
Together, these factors suggest the migration system is changing: more destinations, more young people leaving, and more reliance on remittances. But the core dynamic remains; the lack of sufficiently good jobs at home continues to fuel migration. Whether political unrest will force reform and thereby reduce outward migration, or further propel it, remains to be seen.
Destination countries
Gulf countries (Saudi Arabia, UAE, Qatar, Kuwait, Oman, Bahrain) plus Malaysia
These remain the dominant destinations for Nepalese labour migration, with 80 per cent of labour-migration approvals.
Malaysia
In recent years, Malaysia has become the top destination (≈ one‐third of approvals in 2022/23), reflecting the diversification of destinations beyond the Gulf.
UAE
For the first six months of FY2024/25, 86,000 Nepalese migrated there, the highest single-country number
Saudi Arabia
39,000 in the same six-month period.
India
Historically large informal destination; around 28 per cent of Nepali emigrants (mid-2020 estimate). Due to the open border between Nepal and India, migration numbers can only be approximate.
Other destinations (Japan, South Korea, European countries)
During the first six months of FY2024/25 Japan received 8,500 Nepalese migrants, while South Korea received 5,800 migrants from Nepal,
Fazit
• Migrants from Nepal are typically labour migrants, often in semi- or unskilled work, who keep strong ties with home and use remittances to support families.
• The chances of permanently settling abroad are lower unless the individual migrates under a different channel (study, skilled migration, family) rather than labour.
• Return migration is real, but support is weak; many returnees struggle to reintegrate and often re-migrate.
• Migration remains a household strategy for survival and aspiration. Remittances are significant, but their long-term economic impact depends on how they are used.
• For host-country societies, Nepalese migrants often fill needed roles, but they may also face vulnerabilities (recruitment debt, poor working conditions, informal employment), especially in the Gulf/Malaysia corridor.
Sources: International Organisation for Migration (IOM); Centre for the Study of Labour and Mobility; Springer Nature; Tek Singh Bhat; Kathmandu Post; Amnesty International; Nepali Times; The Nepal Weekly; Patan Pragya Journal; República; Helvetas; MDSOAR; Business Standard; The Washington Post.
Further reading: Central Asian migrants in Russia || Japan debates immigration ||
COMMENTS
FOLLOW