Unemployment in Bhutan

N.B.: This is my first prize winning essay, I wrote in 2008 as a First Year student at CST :)

     The development progress in any country depends on the productive output from its population and its ability to provide gainful employment to a large segment of youth. As stated in unemployment-Wikipedia, the free encyclopedia, (2008), “Unemployment is a state in which a person is without work, available to work and is currently seeking for work”. Today, unemployment is seen as a rising concern all over the world especially in the south Asian countries. Like in all other countries, the development progress in Bhutan was followed with the unemployment problems arising among the youths, aged under 20 years. The development in Bhutan ushered the kingdom into an era of one of the biggest economic challenges wherein more than 40% of the population is facing tremendous difficulty in finding their choice of employment. Though, Bhutan has a lower rate of unemployment among these countries, yet the number is very alarming taking into consideration its population size.

     The employment scenario in Bhutan has undergone major changes particularly over the last decade. This is seen as an outcome of considerably faster growth rates in the secondary and tertiary sectors compared to the primary sectors. According to the Bhutan living standard survey Report, (2007), the unemployment rate has increased to 3.7% in 2007 from 2.5% in 2004 and 3.2% in 2006 (p. 40). In Lhuentse, Tashiyangtse and Thimphu, unemployment rates are found to be the highest. The high unemployment rate in Lhuentse and Trashiyangtse is because the job seekers increasingly outnumber the job opportunities available (since these dzongkhags are the rural parts).The population is high but the development rate very low,  the facilities such as industries and co operations, which employ many people are comparatively very few in these regions of the country. Thus the few available co operations remain helplessly short of space to accommodate the needy . (Though the government is now emphasizing on rural development).

Similarly, the unemployment rate in Thimphu is very high. This maybe because, Thimphu being much urbanized as compared to other dzongkhags attracts most of the Bhutanese jobseekers. But here, the people either do not want to do the jobs available or they are not qualified for the same. These mismatches between the jobs and the jobseekers leave the post empty and people idle. Usually the unsuccessful candidates do not return to their villages but remain back in Thimphu thereby increasing the unemployment rate in Thimphu.

     The incidence of unemployment is highest among the youth aged 15-24, most being early school dropouts. The scenario of the unemployment situation we see is just a tip of the ice berg. And we know that this trend will only mount. The semi literate job seeking population will be far larger. It appears that the training institutes will continue to be a weak link between the swelling student population and a hungry job market.

The Frey the problems of unemployment, a distant and vague concern in the past, suddenly appear to be at our doorstep. At the same time, we suffer an acute shortage of manpower in nearly every sector, both government and private. The irony of unemployed or potentially unemployed youth and a simultaneous manpower shortage spells a serious short coming in planning and coordination. More so because, it hits us at a time when we did not expect unemployment to even be an issue for at least another decade.

        Earlier when people left schools, they went to work on land, but today people seem more eager to find lucrative jobs in urban places. Moreover the lack of understanding on dignity of labor by Bhutanese youth has added up to the increasing number of unemployment. This is a reason as to why the country has employed thousands of Indian workers for blue collar job, building and road construction works because the Bhutanese either cannot-or-won’t do it. According to the former minister, Mr. Yeshey Zimba, “For a small country the question of migrant workers is always a very serious matter”. The cheap labour is fueling Bhutan’s rapid modernization. But the influx of foreign workers, mixed with rising unemployment among Bhutan’s youth is blamed for increasing petty crime and drug and alcohol abuse. The kingdom today finds itself in the position of not having enough laborers on one hand, while having too many over-qualified people on the other. This means that we have on one hand, thousands of students dropping out of school, completing school, and graduating from tertiary institutions every year with more and more of them unable to find jobs; on the other, we have many government and private organizations in urgent need of manpower, especially skilled workers, and not being able to find them. The unemployed youth thus remain confused and confronted by a critical career situation.

      Enormous success of enrolment in schools and increased output of educated youths has resulted in increasing numbers of youths entering the job market. However, the private sector being underdeveloped is unable to absorb the mass. Problem arising out of the mismatch between requirements of the organizations and the skills of the labor force is the reason as to why the scenario in Bhutan is termed as Structural Unemployment.

As the problem comes into focus, what we see is the need for something in between, a range of training programmes to prepare youth for the job market. What we need are training centres and institutions at all levels, offering courses in the most urgently required fields. Skills development has long been recognized in Bhutan as an urgent requirement.

  

     The situation in Bhutan is not that serious as compared to other developing countries. And the truth remains that  However the need to create new employment opportunities in the country has become particularly urgent. As stated by the planning commission of Bhutan, (2006), “unemployment, a phenomenon unknown to the country recently, will soon be a reality that the country will be forced to grapple it” (p.37).

     The government has already started working over the issue. High priority is given to the development of private sector through establishments of handicrafts and other small scale industries. Construction industries and service industries are also being promoted. Further, the government also established the Ministry of Labor and Human Settlement in 2003 to deal with issues related to youth unemployment.  

      In addition to the creation of additional employment through accelerated growth and development of private sector, it is important to create opportunities which will make rural life and employment attractive to youths. The problems of unemployment must be tackled soon in order to increase the productivity of the country and to alleviate poverty.

We live in a changing world full of opportunities.

                                            

Reference Lists

1. National Statistics Bureau. (2007). Employment. Bhutan Living Standard Survey Report. 39-45

2. Department of Aid and Debt Management. (2006). Private sector development and youth employment. Ninth round table meeting Report.   16-21

3. Planning commission. (2006). Employment. Ninth plan main document. 37-39

4. Unemployment-wikipedia, the free encyclopedia. (2008). Unemployment. Retrieved March 24, 2008, from http://en.wikipedid.org/wiki/unemployment

5. Lawson, A. (2002). Bhutan’s deepening unemployment crises, Retrieved March 24, 2008, from http://news bbc.co.uk/l/hi/world/south-Asia/2050395.stm

6. Prakash, D. (2006). Unemployment rising as economy grows, Retrieved March 26, 2008, from http://www.asianews.it/index.php?=l=en&art=5489