Nepal’s labor market is facing a paradoxical situation: a surplus of jobless workers alongside persistent worker shortages in key sectors. This disconnect stems from a fundamental skills gap, where the qualifications of the workforce do not align with employer needs. Contributing to the problem is limited access to accurate job market information, leaving workers unaware of available opportunities and employers struggling to find suitable candidates. Low wages further exacerbate the issue, discouraging workers from pursuing certain jobs and incentivizing migration for better economic prospects. Ultimately, weak skills recognition systems hinder the effective matching of talent to demand. Addressing these challenges is crucial for Nepal’s economic development and ensuring a productive workforce.