• Friday, 9 May 2025

Need For Skilled Labour

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What do advanced countries such as the USA, China, Japan, Germany, the UK and many others have in common? Of several answers, one stands out: a skilled labour force.  A cornerstone of a prosperous economy, such a workforce not only commands high pay and perks but also significantly contributes to the nation-building project, as well as to state coffers through high taxes. For a government, this money is critical to spend on public services and infrastructure building. What's more, the money they splurge on consumer goods stimulates the economy, creating jobs. 


Skilled labour is paid handsomely for a reason. Almost everywhere in the world, salary is commensurate with productivity, which is a measure of output delivered per hour. Needless to say, skilled people generally lead a productive life, professionally and personally. Companies even go the extra mile to retain them, while their competitors, in their effort to poach them, offer more generous benefits. Skilled workers can perform tasks more efficiently and effectively, leading to higher output and economic growth. Countries with a highly skilled workforce are more likely to attract domestic and foreign investment, leading to job creation. Indeed, a state cannot afford to lose such valuable people. 


Strategic investment in education and vocational training is the key to producing skilled labour. When there is a mismatch between education and the job market, unemployment becomes a serious problem.  This is exactly what the Minister for Labour, Employment and Social Security, Sarat Singh Bhandari, highlighted the other day. Speaking at a seminar on industrial relations and labour policy jointly organised by the Nepal Trade Union Congress (NTUC) and the Japan International Labour Foundation (JILF) in Kathmandu, the Minister said that linking employment with skills could help generate numerous job opportunities within the country.


He also explained that without a skilled workforce aligned with market demand, it would not be possible to create a linkage between jobs and people, so employment is the only viable option for addressing job-related issues. These words encapsulate the truth of the country's job market, which is grappling with the twin issues of unemployment and the death of skilled manpower -- the void being plugged by foreign workers. 


Whether it is building tunnels, telecommunication systems, roads or other development projects, thousands of foreign skilled workers hailing from dozens of countries are said to be working in Nepal. They are primarily engaged in specialised fields of engineering, though some are also earning their livelihoods doing menial jobs. This stark reality highlights the country's dependency on foreign technical expertise as well as the challenges in fulfilling its needs by producing skilled labour domestically. The grim situation underscores the importance of investing in local skill development to reduce dependency on foreign professionals and to support sustainable employment growth within the country.


There's a lot to learn from the rise of South Korea, for example, from an impoverished and war-torn nation to the ranks of developed countries, and also as an industrial giant. This phenomenal success has been attributed to a highly skilled workforce the country was able to produce through an amalgam of policies and investments. South Korea prioritised universal primary and secondary education, achieving near-total literacy rates. Its unwavering emphasis on STEM (science, technology, engineering and mathematics) education was successful in producing skilled labour capable enough to power the world-beating industries it is known for. Taking a leaf out of South Korea's book can be a worthwhile effort for us. 

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