𝐄𝐃𝐈𝐓𝐎𝐑𝐈𝐀𝐋- 𝐔𝐧𝐩𝐚𝐜𝐤𝐢𝐧𝐠 𝐓𝐡𝐞 𝐒𝐞𝐜𝐨𝐧𝐝 𝐐𝐮𝐚𝐫𝐭𝐞𝐫𝐥𝐲 𝐋𝐚𝐛𝐨𝐮𝐫 𝐅𝐨𝐫𝐜𝐞 𝐒𝐮𝐫𝐯𝐞𝐲 𝐓𝐨 𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝 𝐈𝐭𝐬 𝐈𝐦𝐩𝐚𝐜𝐭 𝐎𝐧 𝐁𝐡𝐮𝐭𝐚𝐧’𝐬 𝐄𝐜𝐨𝐧𝐨𝐦𝐲

The Second Quarterly Labour Force Survey of 2024 provides a crucial snapshot of Bhutan’s labor market dynamics, offering valuable insights into the country’s employment trends, economic challenges, and potential areas for policy intervention. This data not only reflects the current state of the workforce but also highlights evolving patterns that could shape future economic strategies.

One of the key takeaways from the survey is the notable increase in the employment rate, which stands at an impressive 96.3% for the second quarter of 2024. This positive trend signifies a recovery from the economic disruptions caused by the COVID-19 pandemic and subsequent global uncertainties. The growth is particularly evident in the service sector, which leads with a substantial 45.3% employment rate. The agriculture sector follows at 41.2%, while the industry sector has the least representation at 13.5%. This rise can be attributed to the gradual normalization of economic activities and increased consumer confidence, driving businesses to expand their operations and hire more employees.

However, the survey also brings to light several challenges that need urgent attention. Despite the overall high employment rate, there remains a significant disparity in job opportunities between urban and rural areas. Rural regions, which traditionally have been less economically developed, continue to face higher unemployment rates compared to urban centers. The overall unemployment rate for the same quarter is 3.7%, with the youth unemployment rate standing at 19.2%. This discrepancy calls attention to the need for targeted development programs aimed at enhancing infrastructure, supporting local enterprises, and improving access to education and vocational training in these areas.

Another critical issue revealed by the survey is the underemployment problem, particularly among younger age groups and recent graduates. Many individuals with higher education qualifications are struggling to find jobs that match their skill levels, leading to a mismatch between their aspirations and available opportunities. This situation highlights the importance of aligning educational curricula with industry demands and fostering stronger collaboration between educational institutions and the private sector to better prepare students for the job market. The Labour Force Participation Rate is currently at 61.8%, indicating that while many are engaged in the labor market, there is still room for improvement in job creation and employment quality.

The survey also indicates a growing trend towards informal employment. While this sector provides essential livelihood options for many, it often lacks the benefits and protections associated with formal employment. As such, it is imperative for policymakers to focus on integrating informal workers into the formal economy, ensuring they receive fair wages, job security, and access to social protections.

Furthermore, the survey data reveals an increasing emphasis on entrepreneurship among Bhutanese youth. With traditional employment avenues becoming more competitive, many young individuals are turning to entrepreneurship as a viable career path. This shift is encouraging, as it demonstrates a proactive approach to addressing unemployment and creating new economic opportunities. However, to sustain and nurture this entrepreneurial spirit, there is a need for comprehensive support systems, including access to capital, mentorship programs, and business development services.

In response to these findings, the government and relevant stakeholders must implement policies that address both the immediate and long-term needs of the labor market. Investments in education and vocational training, particularly in rural areas, can help bridge the skills gap and reduce regional disparities. Additionally, creating a conducive environment for entrepreneurship and integrating informal workers into the formal sector are essential steps towards building a more inclusive and resilient economy.

The Second Quarterly Labour Force Survey of 2024 provides a comprehensive overview of Bhutan’s labor market landscape. While it reflects positive trends in employment, it also emphasizes the need for targeted interventions to address existing challenges. By leveraging these insights, Bhutan can navigate its economic development path more effectively, ensuring a prosperous and equitable future for all its citizens.