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Youth unemployment stays high despite drop in overall unemployment

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A university degree is often seen as the gateway to a career. But for many young Bhutanese, finding a job after graduation is not easy. While Bhutan’s overall unemployment rate remains low, young job seekers continue to face greater challenges entering the workforce. The latest Labour Force Survey shows that youth unemployment remains about five times higher than the national average.

According to the Labour Force Survey for the second quarter of 2026, Bhutan’s overall unemployment rate dropped to 2.7 per cent from 3.4 per cent in the first quarter of this year. However, unemployment among young people aged 15 to 24 years remains much higher at 13.4 per cent.

Although this is an improvement from previous quarters, youth continue to make up a large share of job seekers. Nearly 39 per cent of all unemployed persons actively seeking employment are youth aged 15 to 24 years.

So, what makes entering the job market difficult for young Bhutanese?

According to the survey, the most commonly cited reason for unemployment is recently completed studies. This refers to individuals who have completed their education or training and are in the process of entering the labor market but have not yet secured employment.

Other reasons included lack of skills at 12.4 per cent, qualification mismatch at 12.3 per cent, lack of adequate qualification at 11.6 per cent and lack of experience at 9.9 per cent.

For employers, experience and practical skills often remain important factors when hiring. For young job seekers, this creates a difficult situation. They need experience to get a job, but they need a job to gain experience.

The challenge is most common among people aged 20 to 24 years, the group where unemployment numbers are highest. The survey shows unemployment declines as people move into older age groups, suggesting that many young people eventually enter the workforce, but often after a difficult transition period.

The report also shows that some job seekers remain without work for longer periods. About 34.1 per cent of unemployed people have been without work for six months or longer, while 15.4 per cent have been searching for more than a year.

While Bhutan’s overall employment situation remains stable, the survey shows that moving from education into employment is still one of the biggest challenges facing young Bhutanese.

Tashi Dekar

Edited by Sonam Pem

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