The state of labor mobility in South Asia presents both opportunities and challenges. Tens of millions of people from the region emigrate to key destinations, such as Gulf Cooperation Council (GCC) countries, East Asia, North America, and Europe. Three of the world’s ten largest remittance recipients are in South Asia: India, Pakistan, and Bangladesh. In some countries, like Nepal, remittances constitute a significant portion of the economy. These financial transfers have been shown to increase household incomes, foster entrepreneurship, and help reduce gender gaps and inequality. However, the costs of migration are high in certain corridors, particularly to the GCC, and brain drain remains a major risk that needs to be addressed. Meanwhile, return migration and reintegration are emerging as critical policy priorities, especially for Bhutan.
Skills development plays a crucial role in enhancing prospects for higher-quality, higher-paying jobs both domestically and internationally, while also helping workers become less vulnerable to exploitation. Skilled workers bring added benefits to their home countries beyond remittances, including accumulated human, financial capital, and social networks. Skilled workers are also able work in a wider range of destinations, including Japan, Malaysia, and South Korea. Upon returning home, their skills facilitate reintegration through employment opportunities and entrepreneurship. Therefore, upskilling should go hand in hand with strengthened labor market intermediation to improve outcomes for both workers and countries of origin. Additionally, artificial intelligence and digital technologies can enhance the match between skills supply and demand, improving the overall efficiency of labor markets.