…overall unemployment was at 3.11 percent or 12,046 persons

Thukten Zangpo

The youth unemployment rate in the country increased to 17.7 percent in the fourth quarter of last year (October to December) compared to the previous quarter.

In absolute figures, it is equivalent to 6, 598 persons, according to the National Statistics Bureau (NSB).

This is according to the Labour Force Survey Quarterly Report 2024.

The rise is an increase by 1.2 percentage-points compared to the previous quarter unemployment rate of 16.5 percent.

Youth unemployment rate is defined as the percentage of unemployed persons in the age group between 15 to 24 years to the economically active population in the same age group.

Female youth face a higher unemployment rate at 21.2 percent compared to males at 14.5 percent, according to the report.

Youth unemployment is primarily an urban phenomenon, with urban areas experiencing a rate of 19.8 percent compared to 15.5 percent in rural areas.

The overall share of youth unemployment to total unemployment was 54.8 percent.

The country also experienced an overall unemployment rate at 3.11 percent, equivalent to 12, 046 persons. Employment in 2024 was estimated at 3.5 percent (2.9 percent males and 4.4 percent females). The unemployment rate increased by 0.02 percentage points in the fourth quarter from 3.09 percent to 3.11 percent in the previous quarter.

Females saw higher unemployment at 4.37 percent than males, at 2.27 percent.

Urban populace saw a higher unemployment rate at 5.54 percent than in rural areas at 1.75 percent.

In the fourth quarter, 12,046 individuals were unemployed. Among them, 43.7 percent were males and 56.3 percent of females. About two-thirds, 64.2 percent, resided in urban areas, while 35.8 percent lived in rural areas.

Among dzongkhags, Paro saw the highest unemployment at 6.21 percent, while Trashigang and Lhuentse saw the lowest unemployment rate with 0.46 percent and 0.5 percent, respectively.

Among the four thromdes, Geleghu saw the highest unemployment at 8.65 percent and Phuentsholing at 3.94 percent.

According to the NSB, the unemployment rate is highest among the younger age groups, peaking at 15-19 years, remaining above the overall unemployment rate until the 25 to 29 years.

The rate declines steadily and flattens starting from the 45 years and above.

In contrast, the number of unemployed persons reaches its peak in the 20 to 24 years age group and then it plummets from the 25-29 years onward.

In terms of educational attainment, persons with bachelor’s degrees have the highest unemployment rate of 10.81 percent and those with any formal education have the lowest at 0.25 percent.

Females with a bachelor’s degree have the highest unemployment rate (17.82 percent), while it is 6.55 percent for males with bachelor’s degrees.

The report also states that there are 596,970 working-age people in the country and the unemployment-to-population ratio of 2.0 percent. The ratio is higher for females (2.4 percent), compared to males (1.7 percent). In urban areas, the ratio is 3.4 percent, more than twice that of rural (1.2 percent) areas.