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Nepali labour migration shifts from Gulf to Europe amid rising demand

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KATHMANDU: Nepal’s foreign labour market is gradually shifting from the traditional Gulf destinations and Malaysia towards Europe, with Romania, Cyprus, Croatia, Türkiye, Malta and Portugal emerging as increasingly popular destinations for Nepali workers.

Official data from the Department of Foreign Employment shows that 85,851 Nepalis obtained labour approvals for 10 European destinations in fiscal year 2025/26, up from 72,378 in the previous fiscal year. Overall, 700,092 labour approvals were issued during the year.

Romania accounted for the largest share, with 22,266 labour approvals, followed by Cyprus with 13,069, Croatia with 8,701, Türkiye with 7,662, Portugal with 7,900, Mauritius with 6,377, Malta with 6,334 and Serbia with 5,779.

Other destinations also recorded significant numbers, including Greece with 3,879 approvals, Jordan with 3,360, Poland with 3,123 and Austria with 3,501.

Officials and labour experts attribute the growing appeal of Europe to comparatively higher wages, stronger labour protections and more favourable working conditions. Department of Foreign Employment Director General Meera Acharya said the number of Nepalis heading to Europe has increased alongside the overall rise in foreign employment.

She said educated Nepali youths in particular are increasingly looking towards Europe because of better income and employment prospects compared with traditional Gulf destinations.

Most Europe-bound workers use individual visas

The growing migration to Europe is also raising concerns over the way workers are obtaining employment.

Of the 85,851 workers who received labour approval for the 10 European destinations last fiscal year, only 7,231 went through institutional recruitment, while the overwhelming majority travelled through individual visas.

According to the department, institutional recruitment was mainly recorded for Jordan and Malta, along with a limited number of workers going to Romania.

Labour migration expert Rameshwar Nepal said the growing use of individual channels has increased the risk of fraud and excessive recruitment fees. He said Romania has increasingly become a “gateway” for Nepalis seeking access to the wider European labour market.

The number of Nepalis receiving labour approval for Romania rose from 15,021 in FY2023/24 to 20,874 in FY2024/25 and further to 22,266 in FY2025/26.

Nepal said the lack of a well-established institutional recruitment mechanism for European destinations has left workers dependent on individuals and consultancies. Some workers reportedly pay between Rs 700,000 and Rs 1.6 million to secure overseas employment.

Government plans institutional recruitment

The government has been discussing for years the need to shift Europe-bound recruitment from individual arrangements to a more regulated institutional system, but implementation remains limited.

Minister for Youth, Labour and Employment Ramji Yadav said the government was preparing to make the recruitment of Nepali workers for European countries more institutional, transparent and systematic.

He said the Labour and Foreign ministries were coordinating to establish a safer recruitment mechanism. If existing procedures for verifying employer demand letters prove difficult, the government is also studying options for greater direct involvement of the Labour Ministry.

The shift towards Europe could open new opportunities for Nepali workers, but experts warn that without stronger government-to-government coordination and regulated recruitment channels, rising demand could also fuel fraud, excessive fees and exploitation in the migration market.