 Labour force (work force) approximately 216,500 as per 2004 Labour Force Survey. Expected to increase to almost 450,000 by end of 9th FYP
 Unemployment rate increased from 1.4% of the economically active people in 1998 to 2.5% in 2004 to 3.1% in 2005 as per NPHC
 63,000 young people would join the Labour Market within the 10th FYP and expected to increase to 100,000 within next ten years
 The age distribution of un-employed in Bhutan is an additional concern to the Royal Government
 LFS and PHCB shows un-employment is disproportionately high for people in the ages of 15-24 years and the most vulnerable age group is between 15-19 years
 42% below the age of 15 years
 Rural un-employment is 2.3% where as urban is 5.6% as per PHCB report
 Bhutan National Human Development report 2005 shows –youth comprised 19% of the Labour force and 20% of the country’s population. PHCB report shows 22.96% of national labor force comprised of youth.
 Youth un-employment increased from 2.6% in 1998 to 5.5% in 2004 (LFS)
 PHCB – Youth un-employment figure between 18-24 years is 5.1%
 Youth un-employment is 3 times higher than that of general un-employment rate
 LFS and PHCB reveals that un-employment for youth both male and female is more acute in urban than in rural area.
 Female un-employment is much higher than male un-employment
 LFS 2004 indicates that female un-employment rate are on the whole twice higher than for males in both rural and urban areas
 LFS 2004 shows 4.3% female un-employment and 1.1% male un-employment. Similarly, PHCB shows 7.6% female un-employment and 3.6% male un-employment

Causes of Unemployment in Bhutan

 Employment opportunities in the Public Sector very limited

 Mismatch between the aspirations of job seekers & realities of the job market

 Youthful demographic profile

 Less preference for blue collar job

 Rural-urban migration

 Small and under-developed private sector (slow growth of new job opportunities

 Lack of enabling regulatory environment for workers and employers in the private sector

 Easy accessibility to cheap foreign workers

 Capital Intensive Economic growth
Strategies to create and promote employment
 Increase the quality of school education and impart school leavers with employable skills as well as increase the in-take capacity

 Strengthen the Career and employment counseling to change the mindset of youths and parents

 Private sector needs to generate more employment and provide conducive working environment
 Provide equal opportunities in training and employment for male and female

 Promote youth entrepreneurship – Not job seekers but creator

 Place employment creation at the centre of macro economic policy

 Initiate and foster public-private cooperation
 Policy interventions to enhance the value of blue-collar workers

 Institutionalize transparent and merit based recruitment and career progression system

 Creation of strong information data base (F & S)

 Introduction and enforcement of occupational safety and health
 Job Fairs/service centres

 Exploring employment opportunities outside Bhutan

 Yes Country Network Bhutan