Europe Becomes a New Migration Hub for Nepali Workers as Gulf Risks Rise

A sharp change in Nepal’s labor migration map

Europe is becoming a major destination for Nepali workers as uncertainty in the Gulf encourages jobseekers to look beyond Nepal’s traditional employment markets. In the first 11 months of fiscal year 2025-26, 53,951 Nepali workers received new labor approvals for jobs in 24 European countries. Europe accounted for 14.7 percent of Nepal’s approved outbound workforce during that period, up from 8.69 percent in the previous fiscal year.

The figures show a rapid change in direction, although the Gulf remains the largest destination. Between mid July 2025 and mid June 2026, about 367,000 Nepalis received new labor permits for work in 160 countries. Gulf countries accounted for 55.4 percent of that total, while Malaysia represented 15.9 percent. Europe has gained ground as workers weigh job stability, residence rights and the possibility of bringing family members against the higher short term earnings often available in the Gulf.

Women made up 12,482, or 23.91 percent, of those approved for European jobs. Their presence is especially visible in Cyprus, where 4,742 of the 7,314 Nepali workers receiving new permits were women. Many are employed in domestic work.

The shift comes as tensions in West Asia have renewed concerns about the security and reliability of traditional labor markets. Nepal’s economy depends heavily on remittances, so changes in the destination map affect families, recruitment businesses and government policy alike.

Why Romania is leading the European demand

Romania is by far the largest European destination for Nepali workers. Nepal’s Department of Foreign Employment recorded 24,767 new approvals for Romania during the period, including 3,144 for women. The country received roughly 46 percent of all Nepali workers approved for Europe.

Romania’s demand is concentrated in construction, hotels and restaurants, factories, warehouses, logistics, caregiving and other services. Ilfov County, which surrounds Bucharest, has registered more than 51,000 foreign nationals. Nepalis form the largest foreign worker group there, attracted by available jobs and the possibility of family reunification.

Romanian immigration data shows the wider scale of this movement. Authorities approved 82,180 work permits for citizens of Nepal, Sri Lanka, Bangladesh, India and Pakistan in 2025. Nepali nationals received 45,496 of those permits. By April 30, 2026, 57,330 Nepali citizens held valid residence permits in Romania, including 56,700 whose permits were based on employment.

Sagar Phuyal, Nepal’s acting ambassador to Germany who also handles relations with Romania, said the country became more attractive after joining the Schengen Area. He also pointed to a labor agreement between Nepal and Romania, whose full implementation is being prepared.

Nepal and Romania have already signed a bilateral labour agreement, and preparations are underway for its full implementation. Currently, Nepalis constitute the largest community of foreign workers in Romania.

Romania has set an annual quota of 100,000 workers from outside the European Union to address labor shortages. The quota is rarely filled in practice, partly because many workers leave their assigned jobs or seek work elsewhere after arrival.

Eastern Europe is often seen as a gateway

The popularity of Romania does not always mean that workers intend to build their lives there. Some Nepalis view Romania, Croatia, Serbia, Bulgaria and other eastern destinations as an entry point to Western Europe, where wages are generally higher and residence systems are perceived as more attractive.

Lhakpa Sherpa, president of the Sherpa Community Association in Bucharest, said Romania’s visa process is currently among the fastest. Workers may receive a temporary residence card after arrival, then attempt to move to another European country. Romanian authorities have responded with tighter checks.

Immigration officials at airports now call employers to verify arrivals, and workers are turned back if their employers do not confirm their positions.

Some workers try to travel through the Balkan Route, an irregular corridor that crosses countries such as Turkey, Greece, Bulgaria, North Macedonia, Serbia, Bosnia and Herzegovina, Croatia and Slovenia. The route can lead toward Italy, France, Germany, Portugal or Poland. People may pay smugglers or guides to cross forests and mountain borders, exposing themselves to arrest, injury, theft and exploitation.

Legal movement is also possible in some cases, although residence permits are tied to conditions that workers may not fully understand. Yam Kumar Rupakheti, who worked in Croatia, said he found jobs in warehouses, food delivery and painting after arriving with a temporary residence card. He later traveled legally to Italy while the card was still valid. His experience also shows how quickly a worker can become responsible for finding employment, renewing documents and paying living expenses without reliable support.

Which European countries are attracting Nepalis?

Cyprus ranks second among European destinations, with 7,314 new labor approvals. Portugal received 3,245 Nepali workers, followed by Malta with 3,056, Bulgaria with 2,993, Serbia with 2,899, Croatia with 2,817, Greece with 2,254 and Austria with 1,961.

Direct access to richer Western European economies remains limited. Only 316 Nepalis received work approvals for Germany, 190 for Ireland, 146 for France, 146 for Spain, 62 for the Netherlands, 20 for Belgium and nine for Sweden. These low figures reflect stricter visa rules, higher qualification requirements and the limited number of formal recruitment agreements available to Nepali applicants.

Poland is another market to watch. Nearly 1.29 million foreign workers were legally employed there by the end of 2025, an increase of about 8 percent in one year. Ukrainians and Belarusians remain the largest groups, while workers from Nepal, India, the Philippines, Vietnam and Colombia are becoming more common. Reports indicate that the number of Nepalis in Poland rose by more than 30 percent in 2025.

Poland needs workers because its working age population is shrinking. Demand exists in factories, transport, nursing, computer programming and machine operation. New digital procedures have simplified some employment processes, although higher fees, long permit delays and stricter penalties for illegal employment continue to affect employers and migrants.

Greece is also seeking workers from outside the European Union for farming, tourism, food services, construction and manufacturing. More than 80,000 positions have been approved annually in recent years, yet only 40 to 50 percent are filled because visa and recruitment processes can take five or six months. A proposed law would allow temporary employment agencies to recruit workers directly and place them with Greek businesses.

Europe’s labor shortage is larger than a visa trend

Nepal’s migration shift is connected to a wider European labor shortage. The European Labour Authority identified shortages in 2,617 occupations in its 2025 report. Italy reported shortages in 253 occupations, followed by the Netherlands with 195, Bulgaria with 193, Belgium with 184 and Romania with 170.

The shortages affect skilled trades, machine operators, technicians and drivers, as well as middle skill jobs in construction, transport, hospitality and personal services. About 57 percent of the listed shortages were rated high or medium in severity. Aging populations, low birth rates, skills gaps and difficult working conditions have reduced the number of available local workers.

Health and care services face especially heavy pressure. More than 25 million people work in European health and care services, yet the sector has a 36 percent shortage of specialist doctors, general practitioners, nurses and care assistants. More than half of the existing health workforce is aged 50 or older. Non EU citizens make up a large share of home care workers and a growing portion of highly qualified medical staff.

Sweden illustrates the tension between labor demand and restrictive migration policy. Foreign trained doctors account for more than 27 percent of active doctors there, while immigrants represent more than half of healthcare assistants. The country is expected to need another 50,000 elderly care workers by 2030. Deportation cases involving healthcare staff have led to calls for more predictable residence rules.

Transport is another example. European logistics companies increasingly recruit truck drivers from Asia, Africa and Latin America. Workers may receive language training, licenses and instruction in European driving rules before departure. Reports from the sector also describe debt, wage deductions, withheld documents and complex subcontracting arrangements that make it difficult to identify who is responsible for labor abuses.

Why family security can matter more than higher pay

Europe does not always provide the highest immediate income for Nepali workers. Kumari Waiba, who previously worked as a cook in the United Arab Emirates, earns about 1,100 euros a month in Bulgaria. After rent, taxes, health insurance, transport and daily expenses, she said she can send about 700 euros home. Some general workers earn around 1,200 euros monthly, while savings can fall below 500 euros without overtime.

Even with lower savings, Europe remains attractive because a worker may eventually qualify for permanent residence and bring family members. That prospect can be more valuable than several years of higher wages in a temporary Gulf job. Residence rights, public services, schooling and legal employment also influence decisions.

European Union data shows the scale of this attraction. In 2023, 1.3 million non EU citizens received first residence permits for employment, representing 33.8 percent of all first permits. The EU issued 3.7 million first residence permits for all reasons that year. Family reasons accounted for 45 percent of migration, ahead of employment at 28 percent.

The demand for foreign labor is likely to continue in care, construction, tourism, transport and technology. Europe is also creating formal programs to compete for skilled workers, including the EU Blue Card and the EU Talent Pool. Germany issued most Blue Cards, while countries such as France have expanded routes for workers in shortage occupations. These programs are generally easier to use for qualified professionals than for general laborers.

Recruitment gaps expose workers to fraud

The growth of European migration has moved faster than Nepal’s formal recruitment arrangements. Many jobseekers depend on personal contacts, informal networks and individual agents. They may pay between Rs700,000 and Rs2 million for a job, travel documents and residence arrangements.

Nepal’s Department of Foreign Employment says 4,993 people have filed complaints linked to European job fraud, seeking about Rs240 million in compensation. Common complaints include false salary promises, nonexistent jobs, poor housing, unpaid wages and unexpected changes in the employer or location.

Bhimsen Thapa, youth vice president of the Non Resident Nepali Association in Portugal, said some workers remain without jobs for months after arrival. Those who run out of money can become undocumented and face arrest or removal. Language barriers can prevent them from opening bank accounts, finding housing or accessing legal assistance.

Workers often find that the wages and accommodation do not match the recruiters’ promises. Many remain unemployed for months, run out of money, or become undocumented, facing arrest and deportation.

Dik Bahadur Khatri, chairman of the Nepal Association of Foreign Employment Agencies, said restrictions on licensed agencies have pushed workers toward informal channels. He argued that legitimate companies should be allowed to arrange European placements under government oversight, with clear responsibility for contracts and worker welfare.

Jeevan Baniya of the Centre for the Study of Labour and Mobility said Nepal’s diplomatic missions need more staff and resources as the migrant population expands. Missions may need to verify employers, monitor working conditions, provide translation and legal referrals, and help workers replace documents or recover unpaid wages.

Nepal prepares new agreements while Europe tightens controls

Nepal’s Ministry of Labour, Employment and Social Security says it is prioritizing Europe as part of a plan to spread migration across more destinations. Draft bilateral labor agreements have been sent to Albania, Austria, Turkey, Malta, Serbia, Cyprus, Luxembourg, Poland, Bosnia and Herzegovina, Croatia and Belgium.

Labor Ministry spokesperson Pitambar Ghimire said European countries provide strong social protection and welfare. The government is coordinating with the Ministry of Foreign Affairs to create safer legal routes, although formal recruitment has not reached the expected level.

European governments are also trying to control entry and prevent workers from disappearing from their assigned jobs. Romania checks arrivals with employers, while new digital border systems record entry and exit information for many non EU travelers on short stays. These systems do not replace work permits, yet they make irregular travel and overstaying easier to detect.

The challenge is to match labor demand with fair recruitment. Faster visas alone will not protect workers if agents can charge excessive fees, employers can change contracts after arrival or residence permits depend entirely on one company. European employers also need to provide safe housing, written contracts, proper wages and access to complaint systems.

For Nepal, a formal approach could bring benefits to both sides. Workers would have a verified job and clearer legal status, while European employers could recruit from a larger pool without relying on unregulated intermediaries. Bilateral agreements would also give Nepal a stronger basis for resolving disputes and monitoring recruitment.

What the numbers mean for Nepali workers

Europe’s rise as a destination reflects two pressures moving in the same direction. Nepalese workers are seeking security beyond the Gulf, while European employers need people to fill jobs that aging populations and low birth rates have left vacant. Romania has become the clearest meeting point for those pressures, followed by Cyprus and several eastern and southern European markets.

The opportunities are real, yet they are uneven. Many jobs are in physically demanding or low paid sectors. Residence cards may be temporary, family reunification may take years and moving between countries without proper authorization can lead to detention or deportation. Recruitment debt can make a difficult job impossible to leave.

A safe migration policy must therefore focus on verified employers, affordable recruitment, transparent contracts, worker training, consular support and enforcement against fraud. If these safeguards develop alongside new labor agreements, Europe can become a more stable option for Nepali families. Without them, rising demand may also create more opportunities for exploitation.

Key Points

• 53,951 Nepali workers received new labor approvals for 24 European countries in the first 11 months of fiscal year 2025-26.
• Europe’s share of Nepal’s approved outbound workforce rose to 14.7 percent from 8.69 percent.
• Romania was the largest destination, with 24,767 Nepali workers approved.
• Women accounted for 12,482 of the workers approved for Europe.
• Europe has shortages in 2,617 occupations, including construction, transport, care and hospitality.
• Nepali workers face fraud, recruitment debt, poor housing, unpaid wages and uncertain residence status.
• Nepal is preparing draft labor agreements with 11 European and nearby countries.