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By Kinzang Lhamo
Despite overall stability in employment, the country continues to face challenges in creating sufficient opportunities for young jobseekers. The Third Quarter 2025 Labour Force Survey shows youth unemployment at 17.8 percent, more than five times the national rate of 3.2 percent. While overall employment appears stable, persistently high youth unemployment highlights a growing disconnect between education and labour market opportunities.
Young people aged 15 to 24 account for nearly 44 percent of all unemployed persons, according to the report. Youth unemployment rose by 0.5 percentage points from the previous quarter, and 1.3 points year-on-year, indicating that gains in overall employment have not translated into opportunities for new entrants.
โAs a young graduate, it is disheartening to see so many of us struggling to find work despite our education,โ said Pema Dorji. โAfter spending years studying and preparing for a career, it is frustrating to face a system where jobs are scarce, qualifications are overlooked, and experience is demanded before we even get a chance. Many of us feel stuck, unsure of how to move forward.โ
Gender disparities remain evident. Male unemployment stands at 2.3 percent, while female unemployment is 4.7 percent, showing that young women face greater difficulties in entering the labour market.
The Labour Force Survey attributes high youth unemployment to several factors: recent completion of studies (25.4 percent), inadequate qualifications (19.9 percent), qualification mismatch (11.7 percent), and lack of work experience (11.5 percent). These patterns are consistent across both sexes, reflecting structural challenges in the transition from education to employment.
The countryโs labour force report notes that despite economic growth and stable employment rates averaging 96 to 97 percent, many young jobseekers remain caught between academic attainment and the skills demanded by employers. This gap is most pronounced in urban areas, where youth aspire to formal-sector employment, while most available positions are in agriculture or low-wage service jobs.
The survey also reports that 61.5 percent of unemployed youth have been without work for less than six months, while 38.5 percent have been unemployed for longer. Nearly one-fifth, approximately 18.6 percent, of unemployed youth have been jobless for over a year, classifying them as long-term unemployed.
Sangay Lhamo, who has been unemployed for almost a year, described the ongoing struggle: โSeeing things around me, not much has changed. Youths are still unemployed. While government plans give some hope, the reality remains challenging. Our knowledge and skills risk going to waste without the right platform to showcase them. They could be forgotten very soon.โ
Dechen Norbu, a recent graduate, echoed the sentiment, highlighting the personal and social impact of unemployment. โWith a degree in hand, it feels like I have wasted three years. After returning from university, I thought I would find a job, but I am still unemployed. I apply through various websites, get shortlisted, but never hear back for an interview. After so much effort, I just feel hopeless.โ
He added that prolonged joblessness affects more than just career prospects, touching his sense of purpose and independence. โI help my parents with agricultural work during the season, but staying at home jobless makes me feel wrong, like I am not living up to my potential. The problem is not just one thing; there are many issues that need to be addressed, but no one seems willing to. I am still trying to find a job that fits my qualifications and offers a decent salary.โ
The report highlights that persistent youth unemployment, despite near-full national employment, points to structural bottlenecks rather than cyclical economic slowdown. The slow transition from education to productive work emphasizes the need for stronger vocational training, apprenticeship programs, and entrepreneurship support tailored to youth needs.
The government has initiated several programs to bridge this gap. The Youth Engagement and Livelihood Program (YELP) provides financial support, hands-on engagement, and practical skills to young jobseekers. Since January 2025, YELP has engaged 1,858 participants under Engagement Support, 291 under Internship Support, and 513 under Special Support. Employment Service Centres complement these efforts by compiling 3,314 vacancies, facilitating 353 placements, and offering career guidance. Programs such as Career Compass, Career Bootcamps, and GOWA forums further align youth skills with labour market demand and provide informed career guidance.
The Ministry of Industry, Commerce and Employment emphasizes two key avenues for youth: overseas employment and entrepreneurship. These programs aim to provide Bhutanese youth with global exposure and practical experience. The Overseas Employment Program primarily places Bhutanese youth in the Middle East to acquire international skills and knowledge. In 2025, 356 participants engaged in overseas placements. Entrepreneurship initiatives, including Jabchor 2.0, Springboard Plus, and Little CEO, have reached 285 youth, while 19 startups received grants or interest-free loans. Eight nature-based solution entrepreneurs were supported under the UNDP-GEF project. These programs aim to foster innovation, generate employment beyond traditional sectors, and strengthen the domestic private sector.
MoICE also leverages the Bhutan Labour Market Information System and labour market reports to identify skill gaps, design targeted training, and facilitate employer-jobseeker matching. Capacity-building programs, including the Basic Entrepreneurship Course, Skills Development Program, and recognition of prior learning initiatives, enhance employability. Collaboration with schools and training institutes ensures early career guidance, promoting sustainable employment opportunities across public, private, and creative sectors.
As the country advances toward a knowledge-based economy, addressing the youth employment gap is crucial. Without targeted intervention, a generation of young Bhutanese risks exclusion from economic participation, an outcome that could have long-term social and economic consequences.
โPrograms like YELP, overseas employment, and entrepreneurship support are vital to equipping youth with skills, experience, and opportunities for meaningful employment,โ the Ministry said, stressing the need for continued investment in youth-centered interventions to bridge the education-employment divide.
While the challenge remains significant, the countryโs youth-focused initiatives offer pathways to address the employment gap. With programs like YELP, overseas placements, entrepreneurship support, and targeted skill-building, young graduates have avenues to gain experience, develop practical skills, and explore innovative career opportunities. Coordinated efforts by MoICE, alongside schools, training institutes, and the private sector, aim to equip youth to transform their potential into meaningful employment, contributing actively to the countryโs socio-economic growth. Sustained and expanded initiatives could enable Bhutanese youth to participate fully in a knowledge-based economy.
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