Youth Unemployment in Bhutan

A Review

Abstract

Bhutan has maintained strong socio-economic development over the years, but this has not resulted in widespread job creation. According to labour market data, the actual number of job vacancies exceeds the number of registered job seekers, but there is a higher rate of youth unemployment among its economically active population, which has been the trend over the years. Given its small population size, it is a matter of concern. As a result, in order to understand the root causes of youth unemployment in Bhutan, the current study examined the causes of youth unemployment by reviewing national and international reports, as well as articles published in credible journals by local and international researchers. The findings of the study suggest that the most important reason for youth unemployment in Bhutan is a lack of education and skills, followed by a skills-job mismatch, a lack of work experience, an underdeveloped private sector, and youth preferences for civil service. The study recommends that the government and policymakers re-evaluate and assess our current tertiary education system in order to reorient it to the world of work. The government should continue to promote private sector development as the true engine of growth and job creation. Assessing and imparting skills demand in the labour market in institutions and colleges, promoting entrepreneurship for selfemployment, making agriculture an appealing and sustainable sector, and improving the attractiveness of Technical and Vocational Education and Training (TVET) can all help to reduce youth unemployment in the country.