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Foreword
Globally, the effects of the ongoing COVID-19 pandemic has impacted close to 80% of the workforce and
workers active in the informal economy are reported to have been hit the hardest. Aligning with observed global trends, government mandated lockdown measures, travel restrictions enforced in response to the pandemic and fear of the Covid-19 virus among the public has casted multilayered impacts on the Nepali economy as well. While the pandemic has generated a cloud of uncertainty over the future of Nepal’s socio-economic trajectory, it has also simultaneously shed light on the status of its working people, which has urged policymakers to examine the existing policies associated with workers’ rights, labour laws, social protections and working conditions in their countries.
In Nepal, almost 62.2% of the working population- i.e., more than 4.4 million Nepalese are involved in the
informal sectors and even within the formal sectors, about 1.5 million workers are informally employed.1
Hence the issues of informal workers today represent the issues of more than six million Nepalis workers and their families.
As asserted by Centre for Social Change (CSC)’s previous report “Amid the Pandemic and Beyond: Status
of the Informal Workers of Nepal” workers in the informal sectors are disproportionately vulnerable as compared to formal sector workers. However, a deeper analysis of these vulnerabilities is required to identify the neediest groups and to develop effective and efficient policies and interventions.
Pursuing this vital issue, CSC is pleased to share this study report, “Under the Shadows of Informality:
A Vulnerability Assessment of Informal Sector Workers of Nepal”. This study is guided by interactions with 80 informal workers employed in five sectors (street vending, domestic work, construction, transportation and agriculture) and 18 stakeholders and experts.
CSC would like to take this opportunity to thank its entire team for their diligent and timely contribution in
research, design and publishing of this report. Our special thanks to Ms. Gyanu Maya K.C. and Mr. Deek Ghimire for the immense support during the research. We are also grateful for the many consultations and suggestions received along the way. CSC is especially grateful to the workers, stakeholders and experts who have provided invaluable insights for the construct of this report.
It is our hope that the result of this report, as well as other pursuits by CSC on this agenda, will help initiate much-needed discussions on issues faced by informal workers, support labor governance institutions and assist policymakers, practitioners, and other relevant stakeholders to protect the rights and wellbeing of workers in the informal economy of Nepal.