Youth Unemployment in Bhutan: A Meta- Analysis of the Lessons and Perspectives

Abstract

Unemployment is an economic issue worldwide. Bhutan is no exception; particularly during and after the Covid-19 pandemic the unemployment figures, particularly, youth unemployment rates in Bhutan were surprising. Despite efforts, the issue still looks elusive and wavering with no major reduction in national unemployment figures. To this end, a comprehension of the underlying issue, the nature of the Bhutanese labour market and an understanding contributing factors are essential. In addition, evaluating the government plans and policies is key. Thus, this study has attempted to analyse the data over the past 10 years, of relevant sources such as labour force surveys, policy documents of the Royal Government of Bhutan, and other related studies. The findings are presented as tables, graphs and descriptive statistics and discussed and concluded accordingly. The study identifies three critical elements referred to as the ‘employment triangle’ that significantly influence labour market dynamics in Bhutan. Moreover, they are demographic transformation, work attitudes and educational deficits. Precisely, youth unemployment in Bhutan is influenced by factors, such as demographic transformation (job security, employee protection, absence of employment-rich economy), work attitude (conventional job choice and preference patterns, negative role of society) and educational deficit (skills mismatch, inadequate national HRD planning and support, lack of skills development or school to work transition initiatives).