Impact on Job Market Nepal’s e-commerce sector is valued close to US$30 million, which is experiencing growth at over 40% per annum. Nepal’s e-commerce revenue by 2023 is expected to cross US$192 million annually at current growth rates. The industry has proved to have huge impact on job-creation throughout the supply chain across different economies, including large economies as India and China, with more than 2/3rd of the jobs in logistics, ware-housing and last-mile delivery. Direct jobs created by the start-up and e-commerce sector grew by CAGR of 50% for 2012-2015 period and is expected to continue the same through to 2021. Nepal’s job sector has huge potential to boost from the same, as it has an under developed logistics infrastructure and lacks in last-mile delivery. The seller base for Nepal’s online business has been on the growth. Telecom is another area which has been consistent with positive impact on job creation. The opportunities exist across telecom installation, equipment manufacturing, distribution, maintenance etc. India expects more 20 million jobs in telecom sector by 2025, driven by fiber network plans, BTS installations, WiFi projects, and domestic telecom industry. Nepal as of now imports most of its equipment and has an untapped potential3536373839 Potential Impact of Service Sector in Nepal As of 2017, Nepal’s 70% of the population is employed in agricultural activities and contributes 26.41% of GDP. Services employ 20.1% of workforce while contributing 51.6% of GDP. For 2017, per capita employment in service yielded GDP value addition of US$8,468.56 in PPP, compared to US$1,212.05 by agricultural and allied sectors. The shift from agriculture to services across workforce has been linear and consistent over last few years. Growth in ICT and internet economy can absorb the annual addition of workforce into service economy at increasing rate, creating more value per capita. Every year more than 500,000 youth are entering into Nepal’s job market, translating into need of at least 286,900 jobs to sustain the current rate of employment.40 It is predicted additional job opportunities created across service sector across different vertical of economy, there is a potential growth of 1 percentage point of workforce working in service sector. In 5 years, the potential impact of workforce employed in service economy reaching 25% of total active workforce is predicted to be more than US$12 billon. This comes at assumption of decline in total employment in agriculture to 65% from 2017 level of 70%. Further benefits can be realized from Digital payments, App ecosystem, and improvement in agro-value chain, smart logistics, education and development of knowledge economy. 35 World Bank, Frost and Sullivan Analysis http://kathmandupost.ekantipur.com/news/2018-04-17/nepals-employment-rate-highest-in-southasia.html 37 https://www.ibef.org/industry/telecommunications.aspx 38 http://kathmandupost.ekantipur.com/news/2018-10-11/digital-2020.html 39 https://thehimalayantimes.com/business/nationwide-broadband-service-by-2020/ 40 World Bank 36 36