Skills vs Degree in Nepal: Youth Dilemma and Reality

Career 29 Nov 2025 50

Skills vs Degree

Skills vs Degree: The Current Dilemma and Reality for Nepali Youth

In this article, we examine in depth the most complex and debated topic under “Common Problems of Educated Nepali Youth”: “skills versus degree.”

This article has been prepared so that it can be understood either as an extended and supplementary part of the article above or as an independent piece on its own.

Nepal’s current education and job market carries a major paradox: the imbalance between “skills” and “degree.” On one hand, society and families treat higher degrees such as a Master’s or PhD as the main measure of respect. On the other hand, the modern economy values real “ability to work” more than a paper certificate.

This dilemma is analysed here in a factual way.

Table of Content

  1. Skills vs Degree: The Current Dilemma and Reality for Nepali Youth
  2. 1. The fascination with degrees and its limits in Nepal
  3. 2. The skills the market actually demands
  4. 3. Comparative overview: degree versus skills
  5. 4. Where does the problem lie?
  6. 5. The way forward: balancing degree and skills
  7. Conclusion

1. The fascination with degrees and its limits in Nepal

In Nepali society, only those who complete a Bachelor’s or Master’s degree are commonly considered “educated.” The question, however, is what these degrees actually provide in practice.

There is a heavy emphasis on theoretical knowledge. The curricula of Nepali universities, such as Tribhuvan University, are largely theoretical. Students memorise the definition of marketing, but do not know how to run a digital marketing campaign in real life.

For many, a degree becomes just an entry pass for jobs. In Nepal, a certain level of formal qualification is compulsory to apply for positions in the Public Service Commission, banking, or government institutions. As a result, many young people study mainly to pass exams and collect certificates, rather than to build knowledge.

Rote learning dominates the evaluation system. Answers written in a three-hour exam are used to assess three to four years of study. This may strengthen memory, but it does not develop the ability to solve problems.

2. The skills the market actually demands

Today’s private sector and the international labour market operate in a different way. Employers ask not only “What GPA do you have on your certificate?” but more importantly, “What problems can you solve for my company?”

Skills for Market

Where does the skill gap exist in Nepal?

  • Technical skills (hard skills): Management graduates often do not know how to use Tally or Excel properly. Engineering graduates lack practical knowledge for working on site. IT graduates do not know new programming languages.

  • Practical skills (soft skills): Skills such as communication, teamwork, time management, and leadership development are barely taught anywhere in university courses.

  • Devaluation of skills: In our society, people who have technical skills in plumbing, electrical work, cooking, or beauty services are often seen as “less educated” or “lower level.” This is a harmful attitude. In reality, people with such skills are often earning much more than degree holders, both abroad (for example in Australia and the United States) and within Nepal.

3. Comparative overview: degree versus skills

Comparison of degree and skills in key aspects:

Aspect Degree (Degree / Certificate) Skills (Skills / Competency)
Nature Proof of your formal educational journey Proof of your ability to perform work and solve real problems
Mode of attainment Gained by attending college/university and passing examinations Gained through training, practice, and continuous experience
Use in Nepal Compulsory for Public Service Commission, government jobs, and further higher education Necessary for private sector jobs, freelancing, entrepreneurship, and overseas employment
Stability Once obtained, it remains for life (static) Must be updated regularly to stay relevant (dynamic)
Employment guarantee Having a degree alone does not guarantee a job Marketable skills in hand greatly reduce the chance of remaining unemployed

4. Where does the problem lie?

The main reason Nepali youth are unemployed is not only “unemployment” itself, but “unemployability.”

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Confederation of Nepalese Industries (CNI) have repeatedly said, “We need people who can work, but when we call candidates for interviews, they have degrees yet do not know how to work.”

Example:

A student spends four years completing a B.B.S. degree and wishes to work in a bank. However, this student has no practical knowledge of banking software, customer service, or preparing financial reports. As a result, the student remains unemployed.

Meanwhile, a brother or sister who has only passed Grade 12 but knows coding or video editing may be earning hundreds of thousands of rupees per month by working from home.

5. The way forward: balancing degree and skills

The point here is not that “degrees are unnecessary and only skills matter.” Degrees provide a theoretical foundation and social recognition. Skills provide the basis for earning a living and moving ahead.

balancing degree and skills

What should young people do?

Add value alongside the degree

Do not limit yourself to course books while studying in college. Take short-term courses related to your field. For example, management students can learn digital marketing or advanced Excel.

Treat internships seriously

Even if the college does not require it, go to an office on your own and work for two to four months, either without pay or for a small salary. The experience gained there often carries more weight than the degree itself.

Use technology for learning

Platforms such as YouTube, Google, and Coursera make it possible to learn world-class skills from home.

Stop feeling shy about any type of skill

No skill is small. Even if you hold a Master’s degree, learning skills such as making coffee (Barista), cutting hair, or doing electrical wiring can help you when you go abroad or start a business in Nepal.

Conclusion

The present era is less about “What have you studied?” and more about “What can you do?” In the Nepali context, a degree is compulsory if the goal is to secure a government job. However, if the goal is to become financially independent in life, start a business, or progress in the private sector, skills carry decisive weight.

Therefore, educated youth need to equip the certificates (degrees) in their hands with the tools that can make those certificates work in practice: real skills. This has become a necessary demand of the present time.

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