A study entitled “Status of Nepali Migrant Workers in relation to COVID-19”, launched in Nepal today on International Migrants Day, reveals that debt repayment is a major challenge for Nepalese migrants. Roughly 63% of those seeking to migrate were found to have taken out loans to pay for migration costs (approximately US$1050) with an average interest rate of 29.4% a year. The study, undertaken by interviewing a total of 3000 migrant workers, indicates that the majority of returning migrants had taken out loans to pay for migration costs as well. The study also reveals that those employed in the service sector were more vulnerable than those working in manufacturing.
This survey is one of the initiatives to support the Government of Nepal in addressing the vulnerabilities and concerns of migrant workers. The study was carried by the National Institute for Development Studies (NIDS) under the supervision of the International Organization for Migration (IOM) and with overall advice from Dr. Ram Kumar Phuyal, a member of the National Planning Commission of Nepal (NPC).
This survey was conducted among Nepali migrant workers working in their destination country, returning migrant workers, and those who had received final approval to migrate but were awaiting confirmation from their respective employers that lockdown had been lifted. It undertook a quick assessment of the conditions of the migrant workers, particularly in relation to their vulnerabilities, their return intentions, labor rights and social protection mechanisms, changes in social perception, the priority work sector upon return, reintegration plans, and the sector in which migrants worked.
Underlining that Nepal’s migration situation is characterized by out-migration for employment, Lorena Lando, Chief of Mission for IOM Nepal, said, “Nepali workers are found in over 150 different countries around the world and their remittances make a valuable and important contribution to Nepal’s economy.” Unlike last year, 2020 has seen a significant reduction in international mobility which has consequently impacted the global and national economy, she added.
Lando also noted that the Global Compact for Migration (GCM) calls upon member states to address migration in a holistic way in a whole of government and society approach. This is particularly important as the entire world is facing the challenges created by COVID-19, she remarked.
The survey discloses that:
- Almost all migrants (98%) were affected by COVID-19 in countries of destination
Even current migrant workers faced job losses as only about 63% are in work with the remaining 37% having been laid off or on unpaid leave. - Nearly 44% of migrants still had to support themselves using their savings whereas 5% received support from friends and relatives and only 0.4% received support from welfare agencies
- Some migrants experienced changes in their working hours as a result of COVID-19. While 28% of migrants reported a decrease, 6% reported an increase in their working hours and 30% reported that they did not receive regular payments
- 98% stated that they used one or more safety measures in the workplace whereas 2% did not use any
- About 25% of returnee migrants reported that the local population in destination countries treated them negatively
- Overall, migrants expected help from the government in financial matters (55%), in creating a conducive environment (34%), and in-network development for the work they undertake (9%)
- More than 50% of the returnees had made plans for remigration
- One in every 10 returnee migrant did not stay in quarantine facilities although 15% of those who had reported that the quarantine facilities were unsafe due to the lack of hygiene measures.
- One in four returnee migrants reported that they were not treated positively in their communities mainly because of the fear that they would spread COVID-19
The Nepal Labor Migration Report 2020 carried out by the Ministry of Labor, Employment and Social Security (MoLESS) shows that the number of migrant workers currently at work in foreign countries ranges from 2.4 to 3 million. In 2018/19, the major countries of destination for Nepali migrant workers included Qatar (31.8%), United Arab Emirates (26.5%), Saudi Arabia (19.5%), and Kuwait (6.8%).
A study by the National Human Rights Commission (NHRC, 2020) of Nepal reveals that COVID-19 has created serious problems for undocumented migrant workers, domestic workers, workers whose contractual period has finished, and those who were already in an exploitative situation during the migration process.
Considering loans to be a major challenge for migrants, the study team has recommended the provision of collateral-free loans with a low-interest rate so as that both returning and aspirant migrants can repay their existing high-interest loans. For soft loans, the study recommended that micro-credit companies and cooperatives should lend money to returnees without collateral. Recommendations are also made for the government to ensure coordination among the related ministries and institutions with regard to the process of migrant repatriation.
