The country’s youth unemployment rate for the third quarter this year is at almost 16 per cent. This is according to the National Statistics Bureau’s first quarterly Labour Force Survey Report, 2023. The NSB started releasing the statistics quarterly following directives from the Office of the Prime Minister in March of last year. The youth unemployment rate is defined as the percentage of unemployed persons in the 15 to 24 years age group. Unemployed people are those who report that they are without work despite being available and actively seeking jobs during the time of the survey.
As per the International Labour Organisation, all persons 15 years and above are considered as the working-age population.
Unemployed youth makes up over 50 per cent of the total unemployment number. This indicates 50 out of every 100 unemployed persons are youth.
Additionally, the youth unemployment rate differs between male and female and in urban and rural areas.
The youth unemployment rate for male stands at over 13 per cent, which is lower than that for female at over 18 per cent.
Youth unemployment continues to be predominantly an urban phenomenon, with a rate of almost 25 per cent, which is more than half of the rate observed in rural areas at over nine per cent.
Unemployment indicators adhere to international standards, specifically those set by the International Labour Organization. According to the organization’s criteria, a person is considered as unemployed only if three conditions are met simultaneously; the person is without work, actively seeking employment, and available for work if given the opportunity.
The report also highlights that youth population holds a significant potential for influencing the overall socio-economic development of the country.
When this human capital remains untapped and overlooked, it can result in an escalating social burden for the nation.
Although the NSB’s Labour Force Survey report 2022 shows the country’s youth unemployment rate for 2022 at 28.6 per cent, there is no basis to compare if the youth unemployment rate has increased or decreased in the past year as this is the first quarterly report for 2023.
According to a study by a Bhutanese student on youth unemployment and its consequences in Bhutan, youth unemployment has both long and short-term effects.
The long-term effect of youth unemployment is that it affects the outcomes of the market, which is very critical in the evaluation of government policies.
Even at an individual level, long term unemployment where a person has remained without a job for 12 months or more has resulted in varied disturbances of physical and psychological wellbeing of an individual.
Therefore, youth unemployment is linked with increased health symptoms, deterioration in health behaviour, and increase in drug abuse.
In the report, the NSB notes that while the government has consistently prioritised investment in employment creation, the active involvement and investments from the private sectors are equally crucial in addressing the country’s youth unemployment issue.
Samten Dolkar
Edited by Phub Gyem
