Dilli Raj Sharma

Higher education institutions are vital for preparing future professionals and integrating education with the job market. Nevertheless, the limited opportunities for career-orientated education in Nepal continue to pose a significant challenge to the employability of youths. This study examines the impact of the higher education institutional environment and career development learnings on the employability of Nepalese youth. It also examines how career development learning influences the connection between the higher education environment and employment preparedness. The study employs a descriptive and causal methodology, using data from a survey of 411 respondents aged 21–35 actively pursuing work and engaging in career-preparatory courses in Nepal. It employed structural equation modeling to analyze the data and assess the proposed hypotheses. The results suggest that the higher education institution environment does not significantly improve employability (β = 0.038, p > 0.05). Career development learning influences this association (β = 0.803, p < 0.05), underscoring its essential function in converting educational experiences into competencies and preparedness for the job market. The paper stresses the importance of self-determination theory, illustrating how autonomy, competence, and interpersonal interactions contribute to personal development and motivation. Despite the specific cultural and economic context, the outcomes highlight the importance of higher education institutions in fostering career-oriented learning opportunities, advancing employability, and promoting broader developmental goals.