Economy bounces back, employment flounders
Nepal posted economic growth of 4.7 percent in producers' price -- highest in seven years -- in 2007/08, but failed to check rise in unemployment, which went up contrary to general expectations due to a sharp shrinkage in the manufacturing sector. Manufacturing sector, the mainstay of semi and unskilled urban employment, grew at a squeezed rate of 0.18 percent during the year, whereas it had grown by 2.55 percent last year. "Lack of fresh recruitment in the public sector also contributed to the rise in unemployment," says the Economic Survey for 2008/09.