Nepal’s labour migration is witnessing a structural shift as Europe rapidly emerges as a preferred destination for jobseekers looking beyond traditional markets. In the first 11 months of the current fiscal year of 2025-26, a total of 53,951 Nepali workers received new labour approvals to work in 24 European nations.

This surge means Europe now accounts for 14.7 percent of the total outbound Nepali workforce, marking a significant rise from the previous fiscal year when Europe’s share stood at just 8.69 percent. Out of those who migrated to Europe during the time, a total of 12,482 (23.91 percent) were women.

The diversification of Nepal’s labour destination comes at a time when tensions in West Asia have raised concerns over the long-term stability of traditional employment hubs. Data from the Department of Foreign Employment shows that between mid-July 2025 and mid-June 2026, a total of 367,000 Nepalis left for 160 countries under newly issued labour permits. While the Gulf countries still hold 55.4 percent of the workforce, and Malaysia accounts for 15.9 percent, the European market is quickly gaining ground.

Romania remains the single largest European destination, attracting 24,767 Nepali workers, including 3,144 women. This represents approximately 46 percent of all Nepalis who migrated to Europe during this period.

Sagar Phuyal, the acting Ambassador of Nepal to Germany, who also oversees diplomatic relations with Romania, said the Eastern European nation has become highly attractive since joining the Schengen Area. “Nepal and Romania have already signed a bilateral labour agreement, and preparations are underway for its full implementation,” said Phuyal. “Currently, Nepalis constitute the largest community of foreign workers in Romania.”

A recent study by Romania’s Economic and Social Council highlighted that the country has allocated an annual quota of 100,000 non-European Union workers to address severe labour shortages. In the Ilfov county surrounding the capital, Bucharest, over 51,000 foreign nationals have registered, with Nepalis forming the largest demographic. The demand is exceptionally high in construction, hospitality, manufacturing, warehousing, logistics and caregiving services.

According to Romanian immigration authorities, foreign workers prefer Ilfov due to better employment prospects and opportunities for family reunification. However, the path is not without challenges.

Lhakpa Sherpa, president of the Sherpa Community Association in Bucharest, who has lived in the Romanian capital for a decade, explained that many Nepalis treat Eastern Europe as a transit point. “The visa processing for Romania is currently the fastest. Once workers obtain their temporary residence card, many try to move to Western Europe,” said Sherpa. “However, the Romanian government has started cracking down on this. Immigration officials at airports now call employers to verify arrivals, and workers are turned back if their employers do not confirm their positions.”

The challenge of worker retention was also acknowledged by Romanian Labour Minister Florin Manole. According to Romanian public broadcasting, Manole stated that many foreign workers show a reluctance to remain in their designated jobs in Romania, which is why the annual quota of 100,000 non-EU workers is rarely fully realised in practice.

Cyprus has emerged as the second-largest European destination for Nepalis, with 7,314 individuals—including 4,742 women—receiving new labour permits. Most of the women migrating to Cyprus are employed in the domestic work sector.

Other popular destinations include Portugal (3,245), Malta (3,056), Bulgaria (2,993), Serbia (2,899), Croatia (2,817), Greece (2,254), and Austria (1,961). In contrast, access to highly developed Western European economies remains restricted. Departmental figures reveal that only 316 Nepalis received work permits for Germany, 190 for Ireland, 146 for France, 146 for Spain, 62 for the Netherlands, 20 for Belgium, and nine for Sweden.

For many Nepali workers in Eastern Europe, the ultimate goal is Western Europe, often reached via the hazardous ‘Balkan Route.’ This irregular migration corridor involves traveling through Eastern and Southeastern European nations—such as Turkey, Romania, Greece, Bulgaria, North Macedonia, Serbia, Bosnia and Herzegovina, Croatia, and Slovenia—to reach destinations like Italy, France, Germany, Portugal, or Poland. Migrants often pay smugglers and ‘dunkers’ (guides) to lead them through forests and mountainous borders.

Yam Kumar Rupakheti, a migrant worker from Nawalparasi, shared his experience of using Eastern Europe as a stepping stone. After working in Croatia for 11 months, he managed to enter Italy legally using his residence permit.

“When I left Nepal, my visa was valid for only a month and a half,” Rupakheti said. “My agent arranged a one-year temporary residence card (TRC) in Croatia, after which I had to find work myself. I worked in warehouses, did food delivery, and worked as a painter. However, saving money was difficult, and renewal of the TRC was uncertain. Since my card was still valid, I bought a bus ticket and travelled straight to Italy without having to hide from border officials.”

Labour shortages across 2,617 occupations in Europe

According to the European Labour Authority’s (ELA) ‘Labour Shortages and Surpluses Report 2025’, workforce deficits in the European labour market are no longer temporary bottlenecks but have evolved into structural challenges. The report identifies shortages across 2,617 occupations under the International Standard Classification of Occupations (ISCO).

These shortages are distributed unevenly across the continent. Italy faces the most acute deficit, reporting shortages in 253 occupations, followed by the Netherlands (195), Bulgaria (193), Belgium (184), and Romania (170). These five nations account for 38 percent of the total occupational shortages identified across Europe. In contrast, countries like Malta (4), Croatia (30), and Ireland (30) reported significantly fewer occupational shortages.

The ELA report attributes these deficits to demographic shifts, skills mismatches, challenging working conditions, and limited geographical mobility. “To address these systemic challenges, Europe needs coordinated strategies that activate underutilised labour pools, invest in skills development, improve job quality, and effectively leverage intra-EU mobility alongside third-country migration,” the report noted.

The shortage is most pronounced among skilled tradespeople, technicians, machine operators, and assemblers. Crucially, the deficit is not confined to high-skilled sectors; middle-skilled areas like construction, transport, and personal services are experiencing chronic vacancies. Approximately 57 percent of these occupational shortages are classified as ‘high or medium severity,’ indicating that European employers continue to face recruitment difficulties despite a general easing of economic pressures.

The healthcare and caregiving sectors are experiencing a particularly severe crisis. Over 25 million people are employed in European healthcare and caregiving, accounting for 11 percent of total employment on the continent. Yet, there is a 36 percent deficit in specialist physicians, general practitioners, nurses, and healthcare assistants.

“As Europe’s population ages, the demand for healthcare and eldercare is rising high. At the same time, over 50 percent of the current healthcare workforce is aged 50 or older,” the ELA report highlighted. “Long training periods, high study costs, demanding working environments, excessive workloads, irregular hours, and mental strain have deterred local workers, leading to chronic vacancies.”

To cope, European healthcare systems are increasingly relying on migrant labour. Non-EU nationals make up 92 percent of home-care workers and up to 18 percent of highly skilled medical professionals, including physicians and dentists.

Family reunification hope drives Nepalis to Europe

For many Nepali migrant workers, the growing attraction towards Europe is not driven by immediate financial wealth, but by the promise of long-term stability and family reunification.

Kumari Waiba, a migrant from Sindhupalchok, spent seven years working as a cook at a five-star hotel in the United Arab Emirates before relocating directly to Europe. “I have been working in a hotel here in Bulgaria for three years. My earnings and savings are lower compared to the UAE, but once I secure a permanent residence card, I can bring my family over,” she said, adding that she has not achieved permanent status yet.

Currently, Waiba earns 1,100 Euros per month. “Rent is expensive, and after paying for health insurance, taxes, transport, and daily living costs, I can barely send 700 Euros home.”

According to European employment services, a general worker earns an average of 1,200 Euros monthly, saving around 800 Euros after deductions. However, without overtime, savings frequently drop below 500 Euros. Despite this, permanent residency prospects keep Europe highly attractive.

A report published by the European Union in February 2024, titled ‘Migration, Labour Mobility and the EU Labour Market: Recent Developments’, revealed that 1.3 million non-EU citizens received their first residence permits for employment in 2023, accounting for 33.8 percent of all such permits. Total first residence permits reached 3.7 million in 2023, nearly double the 2014 figure.

Furthermore, the 2023 European Labour Market Survey confirmed that family reasons drove 45 percent of migration, followed by employment at 28 percent, international protection at 10 percent, and education at 7 percent.

The report indicates that Europe’s aging population and shrinking workforce will increase the demand for foreign labour in healthcare, construction, hospitality and technology. Yet, Nepali workers face severe exploitation due to the lack of institutional recruitment channels. Jobseekers rely on personal networks and illegal individual agents, paying between Rs700,000 and Rs2 million, making them highly vulnerable to fraud.

The Department of Foreign Employment reported that 4,993 individuals have filed complaints, claiming compensation worth Rs240 million for European employment fraud.

Bhimsen Thapa, Youth Vice-President of the Non-Resident Nepali Association based in Portugal, warned that the challenges are worsening. “Workers often find that the wages and accommodation do not match the recruiters’ promises. Many remain unemployed for months, run out of money, or become undocumented, facing arrest and deportation,” said Thapa.

“Undocumented individuals struggle to rent apartments, open bank accounts, or renew visas. Language barriers also prevent them from accessing legal assistance,” said Thapa, adding that workers frequently endure verbal abuse, physical harassment, unpaid overtime, low wages, and poor safety conditions.

Dik Bahadur Khatri, chairman of the Nepal Association of Foreign Employment Agencies, blamed restrictive government policies for the rise in illegal scams. “The government has legally barred recruiting agencies from sending workers to Europe. Since we cannot facilitate these placements institutionally, workers are forced to rely on personal contacts, and we cannot take responsibility for any subsequent issues,” said Khatri. “There are immense opportunities in Europe, but the government has tied the hands of legitimate manpower companies.”

Jeevan Baniya, research director at the Centre for the Study of Labour and Mobility, stressed that the focus must shift towards protecting human rights for Nepali migrant workers in Europe. In the past, Nepali missions in Europe suspended demand letter verifications under the 2018 directive, citing lack of resources, though friction between the foreign and labour ministries played a significant role. “With the migrant population expanding rapidly, the state must equip its diplomatic missions to actively safeguard our vulnerable workers,” said Baniya.

The Ministry of Labour, Employment, and Social Security stated that it is prioritising the European market to diversify destinations. It has sent draft bilateral agreements to 11 nations, including Albania, Austria, Turkey, Malta, Serbia, Cyprus, Luxembourg, Poland, Bosnia, Croatia, and Belgium. “Europe offers excellent social security and welfare,” said Pitambar Ghimire, Labour Ministry spokesperson. “While we have not achieved institutional recruitment at our expected scale, we are actively coordinating with the Ministry of Foreign Affairs to secure safe migration pathways.”