The gap between urban and rural youth unemployment rates in the country has been decreasing over the years. According to the Labor Market Information Bulletin 2023, the gap between urban and rural youth unemployment rate has dropped to around 13 per cent in 2022 from around 19 per cent in 2013.
The Department of Employment and Entrepreneurship attributes this positive trend to initiatives taken by the Ministry of Industry, Employment, and Commerce.
According to the department, these initiatives ensure that employment-related interventions are not concentrated solely in Thimphu but also extend throughout the country to achieve regional employment balance.
The initiatives include Employment Service Center (ESCs) which provides invaluable career guidance, counseling services, training in resume or CV writing, job interview skills, and entrepreneurship to secure employment.
The centre also helps job seekers find work within their own districts, fostering a more balanced workforce across the nation.
The department mentioned that, in addition to the establishment of such centres, other initiatives could also have played a role in the diminishing gap.
The Youth Enugagement and Livelihood Program (YELP) offers monthly allowances to job seekers, while the Overseas Employment Program (OEP) aims to bolster foreign currency reserves and generate employment opportunities.
In addition, the GOWA forum, a platform facilitating talent recruitment, and the Employment Responsibility System, which promotes shared responsibilities in job creation among economic agencies, contribute to this positive shift.
While the decrease in the gap between rural and urban youth unemployment rates could be a sign of economic equality, regional development, and the betterment of local economies; youth unemployment is still largely an urban phenomenon.
According to the report, there are around 44,000 unemployed youth in urban areas which is almost twice the number of unemployed youths in rural areas, as of now.
The National Statistics Bureau’s labour force survey report for 2022 shows that Thimphu has the highest youth unemployment-to-population ratio of 14.2 per cent. And Gasa recorded the lowest youth unemployment-to-population ratio at 0.6 per cent.
Karma Samten Wangda
Edited by Phub Gyem
