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Reaping the benefits of increasing working-age persons in population

February 28, 2020
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Bhutan needs to invest in human capital so as to reap the demographic dividend which is one time opportunity for the country.  This was shared by the National Statistics Bureau (NSB) yesterday while publishing the report on Harnessing the Demographic Dividend in Bhutan.

Demographic dividend refers to the economic growth due to a rising share of working-age persons in a population. According to the report, an average of 8,000 jobs has to be created every year to reap the demographic dividend.

Analysing the population projection data from Population and Housing Census 2017, the NSB has published a report on harnessing the demographic dividend in Bhutan. As per the report, the county’s population increased from around 634,000 in 2005 to 735,000 in 2017. similarly, it is expected to reach a peak of 883,000 by 2047.

Meanwhile, the share of the working-age population will rise over 70 per cent and the dependency ratio fall to about 40 per cent between 2027 to 2042. The working-age population is the population between the age of 15 and 64 years. The projection shows a huge population in the working-age population until 2042. However, the working-age population will decrease after 2042 as a large number of people will enter old age category.

According to the NSB officials, the demographic dividend would last only for a few decades and eventually close with the increase in the share of elderly population or the aged dependents.

Therefore the NSB has recommended to invest in human capital, strengthen social security and wellbeing measures in eastern region, develop regional hubs, and to create additional jobs. Improvement of women participation rate in labour force, occupational diversification and establishment of a think tank and sectoral tasks forces were also recommended.

Kinley Dem

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