– BIJAY Khadka

In Nepal, the role of women in the economy has undergone a significant transformation in the past four decades. Census data from different years shows that the participation of women in the labor force has increased and the gender gap in labor force participation has decreased.

According to the most recent census of 2021, 72 percent of men over the age of ten are economically active, which means that they were either employed or seeking employment. The figure, on the other hand,  stands at 60.4 percent for women. While the gender gap in economic activity is persistent, results from the previous censuses show that the economic participation of women has undergone a significant increase over time. Between 1971 and 2021, the percentage of the female population over the age of ten who are economically active has increased from 29.2 to 60.4 percent.

One of the major reasons for the increase in women’s economic activity in Nepal is education. Over the years, there has been a significant improvement in women’s education in the country. In 1981, only 9.15 percent of Nepali women were literate, which increased to 34.8 percent in 2001 and further to 48.8 percent in 2011. It now stands at  69.4 percent in 2021. The increase in literacy rates has resulted in more women joining the labor force.

Another reason for the increase in women’s economic activity is the growth of the service sector in Nepal. According to the 2021 Census, the service sector has become the second largest employer for females in the country with approximately 309,944 females employed following agriculture, forestry & fishery.  The service sector includes jobs in fields such as hospitality, tourism, healthcare, education, and information technology. There has hence been the creation of additional employment opportunities across varying skills making them more accessible to women.

There is still a big difference between men and women when it comes to jobs. Only 24.5 percent of employers are female, out of the total employees 36.2 percent of them were females. Females make up less than one-third of government jobs. But in financial corporations, around  44.9 percent of the workers are female. Of those that participated in household work as an economic activity, 51.0 percent were females.

The census has also considered work that is not typically considered economic activities. Female involvement is found to be significantly higher in such activities. For instance, of the population involved in family care, 77.4 percent were females. Likewise, 87.4 percent of females who were not economically active during the 12 months preceding the survey, cited household chores as the main reason.

Despite the increase in women’s economic activity, there are still significant barriers to their participation in the labor force. One of the primary barriers is social norms and cultural expectations. Women in Nepal are still expected to prioritise their household responsibilities and care work over their professional pursuits. This expectation often makes it challenging for women to pursue their careers.

Furthermore, there are still significant barriers to women’s education in Nepal, particularly in rural areas. They are often expected to drop out of school early to help with household chores, and there are inadequate resources to support their education. Out of total “female students” graduates that completed graduation level or equivalent only 41.4 percent were “from rural municipalities, whereas 29.8 percent of females reported having completed postgraduate or equivalent from the rural municipalities.

In conclusion, the census data from the past four decades indicates that women’s economic activity in Nepal has increased significantly. However, the gender gap in labor force participation continues to persist. To achieve gender equality in the workforce, it is crucial to address the barriers to women’s education and employment, including social norms and cultural expectations. Empowering women through education and skills development can result in significant improvements in women’s economic participation and their contribution to the country’s economic growth.

This blog is a part of NIPoRe’s blog series on Women’s History Month 2023

– ANKUR Shrestha

Historically, women’s participation in the tech sector has been remarkably low due to the patriarchal classification of jobs. As a consequence, it led societies to believe that men automatically belong to the fields such as IT while leaving a very narrow space for women. This has caused only a few women to study and subsequently enter the tech sector.

Nevertheless, this is changing, as it rightly should. According to Deloitte Global, the tech industry is making steady progress in shrinking its gender gap. In 2019, overall female representation in large global technology firms was 30.8 percent. Deloitte estimated that women’s share in the overall global tech workforce increased by 6.9 percent from 2019 to 2022. Public commitments by large tech companies to improve gender diversity also aided this increase. Intel, for example, aims to double the number of women and underrepresented minorities in senior leadership roles by 2030. Similarly, HP pledged to reach 50 percent gender equality in roles at the director level and above by 2030.

In Nepal, we see a similar upsurge. According to Nepal’s 2011 census, only 1,117 females studied computing while the number increased to 11,078 in 2021. This shows a monumental increase of about 892 percent in female students in the tech sector during the ten-year period. It also beats the overall increase in students studying computing which amounts to more than 668 percent which is significant by itself as well.

Conversations with women professionals working in Nepal’s tech sector show that one major reason for this uptick is that IT has set itself as an industry better suited for women workers. However, our societal structure has for long had restrictions for women to work (especially after marriage), restricts economic freedom, deems late office working hours as unsafe, treats periods as taboo, considers men as primary breadwinners, and puts less value on women workers. The IT sector provides a workaround for many of these societal issues. Asmita Bajracharya, Product Manager at Innovate Tech says that work in the IT sector can usually be done from home and has flexible work timings, project-based pay, space for freelance work, and a relatively higher pay scale compared to other industries. All these, therefore, she believes make the sector one of the best for working women in Nepal. 

However, the IT sector is also rife with issues depending on which company you analyse or whom you talk to. IT startups are particularly problematic while established companies usually have stringent policies in place. However, we see such discrimination usually persist in smaller and newer companies even within the IT sector. Additionally, smaller companies generally have issues such as longer working hours, and no set leave policies. Nepal’s Labour Act 2017, Chapter 7 Section 33, also requires arrangements for transportation to and from the workplace in employing a female where the working hours begin after sunset or before sunrise. Advocate Sadikshya Maharjan says that this particular section, while well-intentioned, can also cause smaller companies to discriminate in hiring women as they are not able to provide these services.

Another area of the Labor Act, Chapter 2 Section 7, prohibits discrimination in remuneration for equal work. However, unequal pay issues continue to persist in the sector. IT companies are usually structured around payment through projects. Therefore, discrimination while assigning job responsibilities leads to a vicious cycle where companies assign lesser-paying projects to women, leading to lower performances in performance reviews. This subsequently leads to less pay and lower chances of promotion resulting in more incidences of discrimination. Ojaswi Poudel, currently a Software Engineer at Cotiviti, says that she faced such blatant discrimination in one of her previous workplaces. However, she believes having women in senior positions in the company can help break this cycle. She also sees the need for senior women mentors so that younger women have someone to look up to and gain more confidence in this field. She says she does not face such issues in her current company which is more structured, has proper mentorship, and has clear payment policies.

Sadhana Gurung shares similar advantages in her company. Gurung who works at Leapfrog Technology currently as a Software Engineer, QA has proper mentorship models, flexible timings, as well as opportunities for growth in her company. This might also be one of the reasons why it is easier to get more motivation from peers and have women-friendly policies at the office. She also notes how despite fewer women currently working in IT, even clients and senior management are happy to see women workers, are welcoming, and provide proper career guidance.

While it would be a generalisation to say that there is very less discrimination based on only three experiences, trends do point towards more inclusion and provisions of a more equitable working environment for women in tech. With more women choosing the tech sector for their studies and work, and established companies having non-discriminatory policies, the tech sector in Nepal seems to be slightly ahead of the curb than other workplaces in Nepal. A study by McKinsey research showed that the most diverse companies are 48 percent more likely to outperform the least gender-diverse companies. It is then to the benefit of everyone to create a more gender-diverse workplace. There is more to still do to achieve gender parity but the tech sector in Nepal definitely seems to be heading in the right direction.

This blog is a part of NIPoRe’s blog series on Women’s History Month 2023.

– SAGOON Bhetwal

The opinion piece originally appeared in the December Issue of New Business Age Magazine. Please read the original article here.

One can easily get glimpses of the informal economy while passing through the streets of Kathmandu. From street vendors to home-based workers, the informal economy accounts for economic activities that are carried out with informality. This refers to activities and enterprises that are not regulated or taxed while they also continue to lose recognition and protection. The International Labor Organisation (ILO) says that ‘the informal economy consists of activities that have market value but are not formally registered’. While this economy is a global phenomenon, it is most prevalent in Emerging Markets and Developing Economies (EMDEs). It has, on average, a 35% contribution to the Gross Domestic Product (GDP) in low and middle-income countries while the contribution is 15% in the advanced economies.

According to the World Bank (WB), 80% of the workers in South Asia are involved in informal economic activities. In this region, more than 90% of businesses are informal. The informal economy is mostly defined by its composition of low funding, low-skilled workers, irregular income, lack of social security, difficult working conditions, low level of productivity and lack of protection, to list a few. At the same time, it is also important to note that despite all the negative attributes, this economy also acts as the only safety net for people who are left out of the formal one. It is often identified as a shock absorber when making ends meet becomes impossible through the formal economy. In Nepal, according to the Central Bureau of Statistics (CBS), 62.2% of the total employed people are engaged in informal jobs. The occupations with the highest informal engagement are elementary occupations, agriculture, forestry, fishery, craft and related trade works.

Gender Composition
Women’s labour force participation continues to stay lower even today. Out of those women who are active, most are engaged in the informal economy. As per the Labour Force Survey, 90.5% of employed women in Nepal have informal jobs. A number of factors can be attributed to their large concentration such as lower educational attainment, low level of skill, and cultural restrictions. Their involvement can be found in the least visible and most vulnerable segments which continue to remain under-valued.

Women lack access to need-based benefits and face continuous safety risks. A study carried out by Centre for Social Change (CSS) found that women in the informal economy of Nepal face a disproportionate load of gender wage gap, discrimination and harassment, and even unpaid labour. The constant fear of Gender Based Violence (GBV) either puts women at continuous risk at their workspace or keeps them totally out of employment. According to a study done by CARE Nepal, 66.5% of women in informal jobs in Nepal are vulnerable to violence and exploitation. Even the existing legal provisions such as Sexual Harassment (Elimination) at Workplace Act, 2015 do not take into account the violence that happens in informal workspaces and lack specific provisions to address them.

When it comes to differences in income, 66.8% of women in informal jobs earn lower than the minimum wage standard in Nepal. This is extremely high when compared to 31.6% of men working in the informal sector. Wage discrimination persists even in formal jobs, while it is worse for those in informal engagements. What is concerning here is that women are the most discriminated-against as they receive the lowest rate of income or even remain unpaid.

Informal Economy and Covid-19
The Covid-19 pandemic, followed by its containment measures, took economies worldwide into contraction. The ILO estimates that globally 1.6 billion workers in the informal economy were hit the hardest. Due to measures such as mobility restrictions, people were confined to their homes. This meant that they faced difficulty in making livelihoods as their income increased. They also faced risk of losing their jobs. A survey conducted by the Kathmandu Metropolitan City (KMC) shows 81% of the respondents living in Kathmandu were unable to pay for their daily necessities, rent, and loans because of the sudden loss of their jobs.

Informal workers engaged in tourism, trade, construction, and manufacturing sectors bore the highest risk as they lost income and lacked protection measures. The ILO estimates that about three-quarters of the total workers in the tourism sector of Nepal are in informal jobs. Even some of those, employed in formal sectors, had to slowly shift to an informal job to make ends meet. COVID-19 further affected their mental and social well being because of the financial insecurity they faced. The pandemic has shown that vulnerability of informal workers can suddenly exacerbate as workers in informal lines of jobs lack social protection and benefits.

Transitioning from Informal to Formal
Shifting to formal standards for wage workers, home-based workers, and self-employed individuals means that they will have to comply under regulations that include both obligations and advantages. This will lead to their contribution to the tax base and GDP as they also receive access, protection and insurance. The ILO in 2015 adopted ‘Transition from the Informal to the Formal Economy Recommendation’. The objectives of ILO Recommendation 204 for the transition are i) creation of decent jobs and sustainable enterprises in formal economy, ii) transition of workers and enterprises to formal economy, and iii) prevention of informalisation of jobs. At the same time, the policy interventions needed to address the existing informality have to be context and stakeholder specific. The strategy that works for wage employees in developed countries might not always work for daily wage earners in Nepal.

However, it is important to realise that this transition is not easy and is rather a long-term process. The informal economy, despite entailing low productivity and low income, has been assisting families to supplement their income and provide a safety net. It has also been absorbing surplus labour and assisting families living on the poverty line when the formal economy excludes them. In the process, the condition of women in the economy and post-pandemic recovery has to be prioritised. It now becomes important for governments to identify how the informal economy can be assisted or decide the extent and process of their formalisation. One thing to remember is that workers need to be provided the incentive for their economic activities.