Bhutan’s employment rate has reached an impressive 96.5% in 2024, up from 94.1% in 2022, with 370,479 employed individuals, reflecting a 28.7% growth. While these numbers show progress, the country still faces significant challenges in the labor market.
Urban unemployment remains high at 5.7%, more than double that of rural areas (2.3%). The capital, Thimphu, leads with a 5.9% unemployment rate, while rural regions like Trashiyangtse and Dagana have near-total employment. This urban-rural divide highlights the growing disparity in job opportunities.
Gender inequality also continues to be a concern, as women face higher unemployment rates (4.3%) compared to men (2.9%). Furthermore, women make up 61.9% of the economically inactive population, underlining persistent barriers to full participation in the workforce.
While the country has seen a shift in the workforce composition, with agriculture now employing 41.7% of the population and the service sector employing 42%, job types are evolving too. Family workers in agriculture have increased, but the number of regular paid employees has slightly decreased.
Youth unemployment, though improved from 28.6% to 19%, remains a key issue, along with long-term unemployment, which disproportionately affects women.
Education disparities also persist, with only 9.9% of the workforce holding a bachelor’s degree or higher. Meanwhile, a significant portion (33.9%) lacks formal qualifications.
Overall, Bhutan’s impressive employment growth masks ongoing urban unemployment, gender inequality, and educational gaps. Addressing these challenges will be key to creating a more inclusive and balanced labor market.
