Nepal Labor Force Participation
Labor force participation rate SL.TLF.CACT.ZS
Nepal's labor force participation was 39.24% in 2025, ranked 174th globally. This represents a 0.2% decrease from 2024. Data from World Bank, covering 1990–2025.
Overview
Nepal's labor force participation stood at 39.24% in 2025, a decline of +0.07pp from 2024. Based on recent trends, this figure is projected to reach 39.18% by 2026. Nepal ranked 174th globally.
Nepal’s labor force participation rate has slipped to 39.24 % in 2025, placing the country at 174th in the world and marking the lowest level recorded over the 36‑year series that begins in 1990. The rate peaked at 41.56 % in 1993, a modest rise from the 1990 figure of 41.55 %, before entering a gradual decline that accelerated in the 2010s and culminated in the current trough. Compared with peers of similar rank, Jordan maintains a higher participation of 40.05 % while Tajikistan records 38.28 %, highlighting that Nepal’s drop is not inevitable for economies at comparable development stages. The downward movement reflects persistent structural challenges, including limited formal employment opportunities for women and youth, and a sizable informal sector that discourages labor market attachment. If policies that expand vocational training, improve workplace safety, and incentivise private‑sector hiring are implemented, the trajectory could stabilize or even reverse, raising participation rates in the coming decade.
Data & projection
| Year | Labor Force Participation | YoY change | Rank |
|---|---|---|---|
| 2028* trend | 39.05% | - | - |
| 2027* trend | 39.11% | - | - |
| 2026* trend | 39.18% | - | - |
| 2025 | 39.24% | −0.07pp | #174 |
| 2024 | 39.31% | −0.07pp | #174 |
| 2023 | 39.38% | −0.05pp | #176 |
| 2022 | 39.43% | −0.09pp | #176 |
| 2021 | 39.51% | +0.13pp | #177 |
| 2020 | 39.39% | −0.38pp | #177 |
| 2019 | 39.77% | +0.02pp | #178 |
| 2018 | 39.74% | −0.17pp | #178 |
| 2017 | 39.92% | −0.18pp | #179 |
| 2016 | 40.10% | −0.13pp | #178 |
| 2015 | 40.22% | −0.12pp | #178 |
| 2014 | 40.34% | −0.17pp | #179 |
| 2013 | 40.51% | −0.19pp | #179 |
| 2012 | 40.70% | −0.14pp | #179 |
| 2011 | 40.84% | −0.07pp | #179 |
Detected Pattern
Analysis
Nepal matched the Stagflation Risk pattern in 2016. Historically, 38% of countries showing this pattern (117 out of 307) saw labor force participation improve within 24 months. View full analysis →
Frequently Asked Questions
Nepal's labor force participation was 39.24% in 2025. Ranked 174th globally. This represents a 0.2% decrease from the previous year.
Nepal's labor force participation peaked at 41.56% in 1992.
The lowest labor force participation in Nepal was 39.24% in 2025.
Nepal ranks 174th globally in labor force participation as of 2025.
The World Bank indicator code is SL.TLF.CACT.ZS. Data sourced from World Bank.
Nepal's labor force participation is projected to reach 39.18% by 2026 based on trend extrapolation.
The labor force participation of Nepal in 2025 was 39.24%. This ranks 174th in the world.
Cite this page
@misc{historysaid_nepal_labor-force-participation,
title = {Nepal Labor Force Participation},
url = {https://historysaid.com/nepal/labor-force-participation/},
publisher = {HistorySaid},
year = {2026}
}