Impact of digitalization of economy on Nepal labour market : a case study of Kathmandu Valley

Abstract

This thesis explored fundamental details of impacts related to the digital economy on Nepal’s labour market. Since the advancement of technologies and automation implementation surge in industries, the digital economy has adverse implications on the labour market. The research aimed to find the unseen problem of the labour-market ecosystem. The demand for a solid foundation in education and skilled empowerment is a basic growth requirement for emerging countries’ economies. Thus, the growth of advanced industrialization Nepal has stagnated due to a lack of a qualified workforce, youth brain drains, and proper education and structure factors that are related. Thus, this is important to acknowledge while promoting an investable environment through creating space for start-ups. The basic objective of this study was to evaluate employees’ attitudes towards the impacts of the digitalization of the economy. This study addressed the current issues in the labour market through intensive research of variables. Later, the study suggested recommendations for a sustainable opportunity with inclusive dynamics of the digital gap.

The research aligned with investigating the rational process of associating independent and dependent variables. This study employed quantitative methodology, SPSS software, Microsoft Excel, and econometrics facilitate data finding based on primary data through a randomquestionnaire survey. Furthermore, the research included multiple peer reviews, several books, organization reports, and government data to relate to the development of labour markets around the world. Thus, the thesis presents a comprehensive understanding of the impacts of the digitalization of economy related to the Kathmandu Valley labour market.

The findings highlighted the readiness of the labour market in different aspects, adoption, investment, and implementation of advanced technologies in the context of Kathmandu Valley. Despite the country's struggle to implement advanced technologies, skill availabilities have a positive correlation with labour market which reflects that they are ready to embrace the changing nature of jobs. The entrepreneurs and laborers accept reskilling and upgrading their knowledge, respectively. Both parties were willing to acquire new digital skills and adapt to technological advancements to stay relevant in the changing job nature. The findings highlight employee perception of job displacement, suggesting respondents are well-prepared for significant job displacement in the future, with Nepal market on the verge of transiting.