The growing trend of student migration has raised significant concerns about brain drain and labor market desertification, impacting the whole labour ecosystem of Nepal, especially in the key sectors such as healthcare, engineering, and technology as well as in business and agriculture. This outflow of skilled youth depletes the technical workforce, reinforcing a dependency on remittances rather than fostering sustainable economic growth. Despite extensive research on student migration, the majority focus on its causes and consequences, few studies have provided concrete policy frameworks or actionable strategies for the retention of the youths. This paper addresses the gap exploring the interplay between the career aspirations driving student migration and the structural barriers that hinder their return. The study uses a mixed methods approach combining survey data from former student migrants and qualitative interviews from educational consultancies and policymakers to understand the key factors influencing migration decisions. The major findings for outmigration highlight the significant policy gaps, weak skill-matching mechanisms in the job market, and the emotional and social costs of separation from home and family. The study proposes actionable strategies including higher education reforms, sector-specific employment generation, and comprehensive returnee support mechanisms for economic growth of the nation emphasizing public-private partnerships to create relevant platforms for returning graduates. Integrating global best practices with localized solutions, this research offers a pragmatic framework for enhancing youth retention and revitalizing Nepal’s labour ecosystem contributing to broader discourses on labour mobility, aspirations, and the social-economic transformation of the country.

Keywords: brain drain, youth retention, sustainable economic growth, public-private partnerships