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Trade study finds huge skills gap in Bhutan

July 7, 2021
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The Diagnostic Trade Integration Study Update 2020 points out a significant skills gap in the construction, tourism, and production sectors. The study, launched in the capital yesterday, states the skills gap and skills shortage negatively affect youth employment. In addition, the study associates the tertiary education curriculum being content-driven as one of the reasons for the widening skills gap in the country. 

The study found closing the gap between demand for a skilled workforce and short supply needs intervention. The study recommends structural changes in the education, TVET, and training systems.

According to the study, the country lacks standards and clarity on skills required for each sector. At the same time, most firms do not actively support the skills development of their workforce. The study also points out inadequate ICT skills development in the country and limited training opportunities before and after getting a job.

Speaking at the launch, the economic affairs minister, Loknath Sharma, said the Government would integrate the study’s recommendations into its plans on a priority basis.

“We must be able to pick up and implement a few recommendations in another year. We may not be able to implement all recommendations but at least pick around 10. This will help us in revival as well as bringing back our economy besides diversifying trade,” said Loknath Sharma, the Economic Affairs Minister.

The study suggests educational institutions link up with firms in the early stages of curriculum development to bridge the skills gap. It also calls for prioritization of digital skills, setting up financial loans for youth in the cottage and small industry sector and ensuring quality training.

“We have already aligned these programs and plans in the Five Year Plan as well as some in the current context of the LDC graduation plans and programs and the COVID-19 pandemic needs and requirements highlighted. So, the Ministry of Economic Affairs will be working closely with the relevant stakeholders picking up the priority areas by aligning with the Sustainable Development Goals as well as the Five Year Plan,” said Rinchen Lhazom, the Officiating Director-General of the department of trade.

The study put forward 98 recommendations to the various government sectors with an analysis of the new priorities and challenges for the revival and growth of the Bhutanese economy in the face of the pandemic.

The study is an initiative of the Department of Trade and UNDP Bhutan in partnership with the Enhanced Integrated Framework.

Sherub Dorji

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