Background

450,000 young people enter the labour market every year in Nepal. Only 10% are able to acquire some skills training that may prepare them for the job world. Those living in rural areas hardly have a chance to access any opportunity for skills development within their region. The skills training that is being offered often bears little relevance to the requirements of the market, and only 30% of those trained do find eventually employment.

The Employment Fund

At present, two donors are contributing funds to the EF: SDC and DfID. The World Bank will join later in mid 2009.  The Employment Fund provides resources for the vocational skills training of young people from disadvantaged communities and for placing them in employment at a specified minimum salary level. The Employment Fund is governed by a Steering Committee with representatives from Government, donors and Helvetas. The actual Fund is managed by the EF Secretariat which is operated by Helvetas.

Working principles of the Employment Fund

Technical training and job placements are outsourced to competent service providers from the private sector. They are expected to have a good track record from the past and must be well networked with local businesses so that they can place skill trained people in jobs.

Focus on youth from disadvantaged communities

Disadvantaged group (from poor and discriminated households)

Discriminated (socially or gender discriminated)

Poor  (economically poor)  

The Employment Fund pays an incentive to service providers for bringing young people from discriminated and poor communities into employment;

After skills training young people obtain gainful employment

• Skills training graduates have to be in employment (contractual or self-employed) for a minimum of 6 months after the skills training (at least 80%)
• Defined minimum income (5,000 NRs per month for in urban centres, 3,500 NRs in rural areas).
• Training events are based on market appraisals. Thus, they are demand-driven and labour market led.

The main quality criterion of the Employment Fund:

Achieving high rates of gainful employment for skill-trained young people

The key quality indicator for the skills training is gainful employment. To manage this quality feature, the EF ensures that:

• Technical trainers are well qualified with regard to the content and the methodologies of skills training;
• A certification scheme for technical trainers is being developed
• Regular performance monitoring of service providers is conducted
• Service providers, with the support from the EF, will regularly update skill training  packages responding to specific skills requirements in the labour market;
• Apart from the skills training basic life skills are offered as well such as  awareness on gender-related issues, HIV Aids, reproductive health, legal aid and    labour rights.
• Psycho-social counselling is integrated, especially for training geared towards employment in India and overseas;
• Young skills training graduates who plan to take up self-employment are supported through an additional package. The package will assist them to enter self-employment, and establish and manage a viable business.

Achievements

2007

• Training of 3000 people
• Employment rate of trainees in 2007: 90%
• Dalit and Janjati participation: 85%

2008

• Training of 9000 people
• Employment rate 89%
• 60% women
• Dalit and Janjati 85%
• Working with 13 training and employment service providers from the private sector

Perspectives

The Employment Fund plans to increase the number of young people trained and placed in jobs to 15,000 per year. There is a close collaboration with government. By 2011 capacities and systems will have been prepared to transfer the operations of the Employment Fund Secretariat into the Ministry of Education.

Contact Details

Employment Fund Secretariat

Jawlakhel, Lalitpur,

Phone: +977 1 5000027

GPO Box: 688, Kathmandu

Nepal