In a significant stride towards fostering economic equality and regional development, the gap between urban and rural youth unemployment rates in the country has witnessed a noteworthy decrease, according to the recently released Labor Market Information Bulletin 2023.
The report indicates that the gap, which stood at around 19 per cent in 2013, has narrowed down to approximately 13 per cent in 2022. This positive trend is attributed to the tireless efforts of the Ministry of Industry, Employment, and Commerce, as highlighted by the Department of Employment and Entrepreneurship.
The Department asserts that strategic initiatives have been crucial in achieving this reduction, emphasizing that employment-related interventions are not confined to urban centers such as Thimphu but are spread across the nation to ensure regional employment balance.
A key player in this shift is the Employment Service Center (ESCs), designed to offer indispensable career guidance, counseling services, and training in vital skills such as resume writing and job interview techniques. The center also facilitates job seekers in finding opportunities within their own districts, contributing to a more balanced workforce nationwide.
The Youth Engagement and Livelihood Program (YELP), providing monthly allowances to job seekers, and the Overseas Employment Program (OEP), aiming to boost foreign currency reserves while generating employment opportunities, have also played pivotal roles in this positive trajectory.
Furthermore, initiatives like the GOWA forum, a talent recruitment platform, and the Employment Responsibility System, fostering shared responsibilities in job creation among economic agencies, have added significant value to the diminishing gap.
However, amid these positive developments, it is crucial to note that youth unemployment remains predominantly an urban challenge. The report reveals that approximately 44,000 youth are unemployed in urban areas, nearly twice the number in rural regions.
Thimphu takes the lead in this regard, with the highest youth unemployment-to-population ratio at 14.2 per cent, according to the National Statistics Bureau’s labor force survey for 2022. In contrast, Gasa records the lowest youth unemployment-to-population ratio at a mere 0.6 per cent.
While the decreasing gap between rural and urban youth unemployment rates signals progress towards economic equality and regional development, addressing the persisting urban youth unemployment challenge requires continued focus and innovative solutions. The concerted efforts of the government, coupled with ongoing initiatives, provide hope for a more balanced and equitable future for the country’s youth workforce.
