The Bhutanese Leading the way.
Employers struggling to recruit skilled workers as demand grows for service and technical occupations and experience outweighs academic qualifications
According to the Establishment Survey and Employee Survey Report 2026 released by the Ministry of Industry, Commerce and Employment (MoICE), worker shortages and skills mismatches have emerged as the country’s most significant labour market challenge. The report shows that 44.21 percent of establishments continue to face worker shortages. More than half of establishments that were actively hiring, accounting for 58.31 percent, also reported difficulties in recruiting suitable employees.
The findings indicate that the labour shortage is concentrated in key occupations that are expected to remain in high demand in the coming years. The ten occupations facing the most severe shortages are led by waiters, kitchen helpers, auto vehicle mechanics, chefs and housekeepers. These same occupations are also driving future hiring plans and emerging labour demand, highlighting a structural mismatch between the skills available in the labour market and the needs of employers. The report warns that this gap is expected to become more pronounced through 2030.
To address these shortages, many employers continue to rely on foreign workers. The survey found that 31.55 percent of establishments employ expatriate workers to fill critical labour gaps. The report also reveals that employers place greater value on practical experience than academic qualifications when recruiting workers.
Work experience was ranked as the most important hiring criterion by 39.46 percent of employers. In contrast, formal qualifications were ranked as the least important factor by 52.63 percent of employers. The findings suggest a need for Bhutan’s education and training system to place greater emphasis on practical skills and workplace competency to better meet the changing demands of the labour market.
The Training Director of TTI, Ugyen Dorji, said that each year the institute faces difficulty attracting young people to its training programs. He said the institute is making efforts to provide longer training programs to help trainees gain more practical experience, but many young people prefer shorter courses. He said the institute currently offers 14 courses, although some have only a small number of trainees. At present, the institute has a total of 225 students.
Ugyen Dorji said one of the institute’s biggest challenges is the low number of female students enrolling in its programs. He said the institute sometimes has to announce vacancies two or three times before filling the available slots because only a few young people apply. He also said it would be beneficial if applicants carefully chose their career path before applying. According to him, some candidates inform the institute that they have already accepted another job by the time they are contacted, while others withdraw because of the longer training duration.
He also shared that Samthang will launch the Samthang InnoNest, a business incubation centre for TVET graduates, at the end of August 2026. He said the centre will provide basic business training, support graduates in establishing their own enterprises, and help them prepare business proposals in collaboration with the Department of Employment and Entrepreneurship under MoICE.
A restaurant owner in Changzamtog, Thimphu, Tashi Dorji, said he has been struggling to recruit a kitchen helper for almost a year despite repeated efforts. He said the shortage of workers has placed additional pressure on his family. His wife, who previously helped at the restaurant, now spends most of her time caring for their five-year-old child, leaving him to manage much of the daily work on his own.
Tashi said the restaurant is the family’s main source of income, making it increasingly difficult to cope with the ongoing labour shortage. He said the lack of a kitchen helper has affected the smooth operation of the business, especially during busy hours. “I am willing to pay a good monthly salary and provide free food and accommodation, but no one seems interested in working here,” he said.
He said finding reliable workers has become one of the biggest challenges for small businesses, even when employers offer competitive wages and additional benefits.
Chhundu Wangchuk, who now lives in Thimphu, said he studied psychology at Chandigarh University for three years. However, instead of working in a field related to his qualification, he is now employed as a tour guide in the tourism sector. He said this reflects a clear mismatch between his education and his current job. Wangchuk said adjusting to the tourism industry has been challenging because his academic background did not prepare him for the work. He had no prior knowledge of the tourism sector, including the responsibilities of a travel agent or the skills required to guide visitors.
He said the lack of relevant knowledge and experience has made it difficult to deliver quality service. “My course was completely different from the work I am doing now. I had to learn everything from the beginning, and because I am still gaining experience, providing quality service has been challenging,” he said.
He added that while he is gradually learning on the job, working in a profession unrelated to his field of study has required significant effort to adapt and build new skills.
