The latest Labour Force Survey Quarterly Report (Q4 2024) from the National Statistics Bureau presents a high overall employment rate of 96.9 percent, but a closer examination reveals troubling trends.
Women and urban workers are bearing the impact of Bhutan’s unemployment crisis, highlighting persistent gender inequality and a growing urban-rural divide in job opportunities.
Despite the strong employment rate, the National Unemployment Rate stands at 3.11 percent but the figures tell a different story when broken down by gender and location.
Women’s unemployment rate is 4.37 percent, nearly double that of men’s at 2.27 percent, emphasizing the struggles they continue to face in the job market.
Similarly, unemployment is far more severe in urban areas, which is 5.54 percent compared to just 1.75 percent in rural Bhutan.
The rural workforce remains more engaged, but much of it is in subsistence agriculture, which, while counted as employment, does not necessarily offer financial security. The report highlights that a significant portion of the workforce, particularly 31.7 percent of employed women, are unpaid family workers in the agriculture sector, compared to just 15 percent of men.
This disparity in unpaid labour reveals how Bhutanese women in rural areas are engaged in work that contributes to the economy, but remains largely invisible and uncompensated.
Urban areas, expected to provide better economic opportunities, are struggling to create sufficient employment, particularly for women.
Among the thromdes, Gelephu recorded the highest unemployment rate at 8.65 percent, followed closely by Thimphu Thromde at 5.92 percent. The report points out that labour force participation among women is significantly lower in urban centers, with Thimphu reporting the lowest female participation rate at just 31.9 percent.
In contrast, Haa had the highest participation rate among men at 81.0 percent and among women at 74.5 percent in Dagana.
Cities like Thimphu and Paro, despite being economic hubs, continue to struggle with high unemployment rates.
One of the most pressing concerns highlighted in the report is the gender pay gap. While the mean monthly income for employed individuals is Nu 25,070, there is a contrast between earnings based on gender. Men earn an average of Nu 27,350, whereas women earn significantly less at Nu 20,480.
This pay disparity is further reflected in the types of jobs held by men and women. While 11.7 percent of the workforce in managerial positions are women, men dominate leadership roles, limiting economic advancement for women. The report states, “Women with a bachelor’s degree face an unemployment rate of 17.82 percent, significantly higher than the 6.55 percent recorded for men with the same qualification.”
The finding suggests that higher education does not necessarily translate into job security for women, further reinforcing existing economic inequalities.
Youth unemployment remains another critical issue.
The survey states, “Youth unemployment (ages 15-24) stands at 17.7 percent, which is alarmingly higher than the national average.”
This problem is particularly acute in urban areas, where the youth unemployment rate is 19.8 percent, compared to 15.5 percent in rural regions.
The gap between male and female youth unemployment is also wide, with women at 21.2 percent and men at 14.5 percent.
These numbers reflect a worrying trend where young people, particularly young women, struggle to find jobs despite having qualifications and aspirations for better career prospects.
The findings of the Q4 Labour Force Survey highlight the urgent need for policy interventions that address these employment disparities.
Many university graduates remain unemployed because their qualifications do not align with the existing job market, making technical and vocational education a more viable alternative for immediate employment.
The report states that while government jobs remain a preferred career choice for many Bhutanese, the country’s high dependence on public sector employment is limiting opportunities in other fields. Therefore, encouraging private-sector growth, entrepreneurship, and business-friendly policies could help create more job opportunities, particularly in urban areas where unemployment is more pronounced.
The survey also highlights that while the overall employment rate suggests stability, the quality of jobs, wage disparities, and lack of opportunities for women and youth present serious challenges.