New EU-Commissioned Study Highlights the Growing Nepal–Europe Migration Corridor
On 8 July 2025, the Nepal Economic Forum (NEF), with the support of the European Union, hosted a NEFtalk on "Nepal–Europe Migration Corridor" in Kathmandu, bringing together policymakers, migration experts, development practitioners, researchers, and diplomats to discuss one of Nepal's fastest-growing migration trends. The event also marked the presentation of findings from an EU-commissioned study examining the Nepal–Europe migration corridor, providing new evidence on migration trends, labour market dynamics, remittances, and reintegration. The discussion highlighted the importance of strengthening governance and cooperation to ensure that migration remains safe, regular, and beneficial for migrants, Nepal, and Europe alike.
The study reveals that the Nepal–Europe migration corridor has expanded significantly over the past decade, with labour permits for Europe increasing from just 4,585 in FY 2016/17 to more than 77,000 in FY 2024/25. Today, an estimated 450,000–500,000 Nepali nationals live across Europe, reflecting the growing importance of Europe as a destination for Nepali workers. While remittances continue to make a significant contribution to household incomes and Nepal's economy, the research also points to persistent challenges, including high migration costs, limited recognition of skills, fragmented governance, and continued reliance on informal recruitment intermediaries. Addressing these challenges will require stronger partnerships, improved skills matching, greater transparency in recruitment, and more effective bilateral cooperation.
Drawing on fieldwork conducted across eight European countries, the study explores the factors driving Nepali migration to Europe, including better employment opportunities, higher wages, stronger social protection systems, and increasing aspirations for education and long-term settlement. At the same time, the research highlights Europe's changing demographic landscape, where labour shortages across sectors such as healthcare, logistics, hospitality, and construction are creating growing demand for international workers. The findings underline the need for policies that better align workers' skills with labour market needs while ensuring migrants are protected throughout the migration cycle.
The study also places significant emphasis on reintegration, noting that many Nepali migrants return home with valuable skills, professional experience, savings, and entrepreneurial ambitions. Strengthening reintegration frameworks can help ensure that returning migrants are able to invest their knowledge and resources in Nepal's development, transforming migration into a catalyst for innovation, economic growth, and job creation.
A highlight of the event was the conversation between H.E. Veronique Lorenzo, Ambassador of the European Union to Nepal, and NEF Chair Sujeev Shakya, which explored Europe's evolving perspective on Nepali labour migration.
Reflecting on one of the study's notable findings, Ambassador Lorenzo observed, "One thing that stood out to me is how many women are migrating to Europe, and I don't think that's a coincidence. Europe offers a more secure path for women, and that security is bound to be a real factor drawing them to make that move."
The discussion also highlighted the importance of addressing skills mismatches, strengthening bilateral labour agreements, and supporting returning migrants so that migration can deliver long-term benefits for individuals and societies.
The research makes clear that the rapid growth of the Nepal–Europe migration corridor presents a valuable opportunity for both Nepal and the European Union. Realising this potential will depend on strengthening migration governance, improving skills recognition, reducing migration costs, expanding safe and legal pathways, and building effective reintegration systems. By promoting evidence-based policymaking and closer cooperation between governments, research institutions, and development partners, the Nepal–Europe migration corridor can continue to evolve as a model of safe, orderly, and mutually beneficial labour mobility.
The European Union remains committed to supporting initiatives that foster informed dialogue, evidence-based policymaking, and stronger international partnerships on migration. The NEFtalk and the findings of this study contribute to a growing body of knowledge that can help shape policies ensuring migration creates lasting opportunities for migrants, their families, Nepal, and Europe, reinforcing a shared vision of inclusive and sustainable development.
Click to read more about the policy brief of the Nepal-Europe Migration Corridor and the proceedings reports of the NEFtalk on Nepal-Europe Migration Corridor.