𝐍𝐚𝐭𝐢𝐨𝐧’𝐬 𝐄𝐦𝐩𝐥𝐨𝐲𝐦𝐞𝐧𝐭 𝐑𝐚𝐭𝐞 𝐒𝐨𝐚𝐫𝐬 𝐀𝐭 𝟗𝟔.𝟑% 𝐢𝐧 𝐐𝟐, 𝐁𝐮𝐭 𝐘𝐨𝐮𝐭𝐡 𝐔𝐧𝐞𝐦𝐩𝐥𝐨𝐲𝐦𝐞𝐧𝐭 𝐩𝐞𝐫𝐬𝐢𝐬𝐭𝐬 𝐚𝐭 𝟏𝟗.𝟐%

…𝒘𝒉𝒊𝒍𝒆 𝑩𝒉𝒖𝒕𝒂𝒏’𝒔 𝒐𝒗𝒆𝒓𝒂𝒍𝒍 𝒖𝒏𝒆𝒎𝒑𝒍𝒐𝒚𝒎𝒆𝒏𝒕 𝒓𝒂𝒕𝒆 𝒔𝒉𝒐𝒘𝒔 𝒎𝒐𝒅𝒆𝒔𝒕 𝒊𝒎𝒑𝒓𝒐𝒗𝒆𝒎𝒆𝒏𝒕, 𝒕𝒉𝒆 𝒔𝒖𝒓𝒗𝒆𝒚 𝒉𝒊𝒈𝒉𝒍𝒊𝒈𝒉𝒕𝒔 𝒐𝒏𝒈𝒐𝒊𝒏𝒈 𝒊𝒔𝒔𝒖𝒆𝒔 𝒐𝒇 𝒈𝒆𝒏𝒅𝒆𝒓 𝒊𝒏𝒆𝒒𝒖𝒂𝒍𝒊𝒕𝒚, 𝒚𝒐𝒖𝒕𝒉 𝒖𝒏𝒆𝒎𝒑𝒍𝒐𝒚𝒎𝒆𝒏𝒕, 𝒂𝒏𝒅 𝒓𝒆𝒈𝒊𝒐𝒏𝒂𝒍 𝒅𝒊𝒔𝒑𝒂𝒓𝒊𝒕𝒊𝒆𝒔, 𝒆𝒎𝒑𝒉𝒂𝒔𝒊𝒛𝒊𝒏𝒈 𝒕𝒉𝒆 𝒏𝒆𝒆𝒅 𝒇𝒐𝒓 𝒕𝒂𝒓𝒈𝒆𝒕𝒆𝒅 𝒑𝒐𝒍𝒊𝒄𝒊𝒆𝒔 𝒂𝒏𝒅 𝒓𝒆𝒈𝒊𝒐𝒏𝒂𝒍 𝒅𝒆𝒗𝒆𝒍𝒐𝒑𝒎𝒆𝒏𝒕 𝒔𝒕𝒓𝒂𝒕𝒆𝒈𝒊𝒆𝒔

By Sonam Choki

The Second Quarterly Labour Force Survey of་ 2024, conducted in May, sheds light on the current state of the nation’s labour market, revealing significant insights into employment trends, unemployment rates, and regional disparities. By examining the data from this survey, we can assess whether the labour market has improved and how various factors contribute to its current condition.

The employment rate for Bhutan in the second quarter of 2024 is reported at 96.3%. The service sector leads with the highest employment rate at 45.3%, followed by the agriculture sector at 41.2%. The industry sector has the lowest employment rate at 13.5%. The overall unemployment rate for the same quarter stands at 3.7%. However, youth unemployment is notably high at 19.2%, and the Labour Force Participation Rate (LFPR) is 61.8%.

The survey data presents a mixed picture of employment across the country. Zhemgang Dzongkhag reports an exceptionally high employment-to-population ratio (EPR) of 99.9%, suggesting near-total engagement of the working-age population in employment or inactivity. This high EPR indicates a relatively stable or positive employment environment in Zhemgang, potentially reflecting effective local job creation or high levels of economic activity.

In contrast, Gelephu Thromde has the lowest EPR at 91.3%, highlighting a lower level of employment relative to the working-age population. This significant drop suggests challenges in job availability or higher levels of non-participation in the labour market. The variation between Zhemgang and Gelephu highlights regional disparities in employment conditions.

Age-based employment analysis reveals that individuals aged 65 and above have nearly complete employment or inactivity, a positive sign of older individuals either staying in the workforce or retiring. However, the employment-to-population ratio for the 15-19 age group stands at 78.1%, indicating that a substantial proportion of young people are either unemployed or not engaged in the labour market, suggesting a need for enhanced youth employment strategies.

The overall unemployment rate of 3.7% is relatively low, suggesting a generally healthy labour market. However, there are disparities between genders. The unemployment rate for females is 4.5%, compared to 3.1% for males. This gender gap indicates that women face more significant barriers to employment, highlighting ongoing challenges in achieving gender equity in the labour market.

Youth unemployment is particularly concerning, with a rate of 19.2% among individuals aged 15-24 years. Specifically, the youth unemployment rate for males is 18.9%, slightly lower than the 19.6% rate for females. The higher unemployment rates for young women underline the need for targeted support and job creation initiatives for this demographic.

Regional unemployment rates show stark contrasts. Gelephu Thromde has the highest unemployment rate at 8.7%, indicating severe challenges in finding employment within this area. Similarly, Samdrup Jongkhar Thromde faces a high unemployment rate of 8.6%. These figures suggest that economic conditions in these regions are less favorable, with potential issues related to job creation, economic development, or workforce skills mismatch.

On the other hand, Zhemgang Dzongkhag reports the lowest unemployment rate at just 0.2%. This low rate implies a relatively robust employment environment with minimal labour market issues. The contrast between Zhemgang and regions like Gelephu and Samdrup Jongkhar highlights significant regional disparities that must be addressed through localized economic policies and job creation efforts.

To determine whether the country’s labour market has improved, it is essential to consider both the overall unemployment rate and the changes in employment and unemployment figures over time. The current unemployment rate of 3.7% indicates a relatively stable labour market. However, the persistent gender and youth unemployment disparities, along with regional variations, suggest that while there may be some improvement, challenges remain.

The significant regional disparities and higher unemployment rates in certain areas, coupled with the notable youth unemployment rate, point to areas where further improvement is needed. The high EPR in Zhemgang is a positive sign, but the lower EPR in other regions and the gender gap in unemployment rates indicate that the labour market has not uniformly improved across all demographics and regions.

The Second Quarterly Labour Force Survey of 2024 provides a nuanced view of the country’s labour market. While the overall unemployment rate is relatively low, suggesting some level of improvement, the data reveals ongoing challenges related to gender inequality, youth unemployment, and regional disparities. Addressing these issues requires targeted interventions, including enhanced support for women and youth, as well as regional economic development strategies to balance employment opportunities across the country.