Digital Literacy and Its Impact on Employment in Nepal

In today’s rapidly evolving digital world, digital literacy has become crucial for accessing employment opportunities, especially in developing countries such as Nepal. Despite notable advancements in internet penetration and mobile connectivity, Nepal faces significant challenges in translating access into meaningful digital engagement. This literature review aims to explore the impact of digital literacy on employment opportunities and outcomes in Nepal by analyzing a wide range of sources, including research papers, policy reports, and national data. It highlights how a persistent digital divide, shaped by factors such as geography, socioeconomic status, gender, and education, reinforces employment inequality. Furthermore, the findings suggest that while employers increasingly demand digital proficiency, many young people, women, and individuals from rural and marginalized communities remain underprepared due to challenges such as outdated curricula, limited access to digital training, and a lack of digital infrastructure. These skill gaps not only limit local job access but also push youth toward foreign labor markets, contributing to an ongoing brain drain and economic vulnerability. Understanding these concepts is important not only for addressing current labor market gaps but also for shaping inclusive policies that strengthen digital competencies, expand access to training for diverse communities, and help build a stronger workforce that can adapt to Nepal’s changing economy.