YK Poudel

To tackle youth unemployment and boost private sector growth, the Ministry of Industry, Commerce, and Employment (MoICE) is intensifying efforts to address key economic challenges. These include the high youth unemployment rate, the mismatch between job market demands and available skills, and the difficulties entrepreneurs face in navigating a highly regulated environment.

The Ministry is prioritising private sector development and youth empowerment to foster a more dynamic, inclusive, and sustainable economy.

Lyonpo Namgyal Dorji shared this during yesterday’s tenth Meet-The-Press session. He highlighted ongoing initiatives aimed at equipping youth with the skills and entrepreneurial mindset needed to reduce reliance on civil service jobs.

“Youth unemployment has been a persistent challenge for Bhutan, driven by a mismatch between the skills young people acquire and the demands of the labor market,” Lyonpo said.

The youth unemployment rate is decreasing, Lyonpo Namgyal Dorji said, but the ministry remains focused on addressing its root causes, particularly the skills mismatch. “We are committed to providing training, entrepreneurship programs, and reskilling initiatives to help youth secure sustainable employment,” he said.

To bridge the skills gap, the Ministry has introduced programmes like the Entrepreneurship Development Training (CEFE methodology), Basic and Advanced Entrepreneurship Courses, and Technology Entrepreneurship Programmes.

“These initiatives aim to equip young people with the skills necessary to thrive in a rapidly evolving economy. Furthermore, the Bhutan Labour Market Information System (BLMIS) provides real-time data, offering valuable insights to better align education with employment needs,” Lyonpo said.

The Minister highlighted that promoting entrepreneurship as an alternative to the traditional civil service career path is a key strategy to address youth unemployment. “Bhutan’s economy has long been heavily reliant on the public sector, but the government recognizes the need to diversify and expand the private sector to ensure long-term growth and job creation,” he said.

The Ministry’s approach also includes integrating entrepreneurship education into school curricula and offering direct support through initiatives like the Youth Employment and Livelihood Programme, which subsidises part of the salary for young employees.

Additionally, programmes aimed at supporting startups and small businesses are gaining momentum. These include startup centres, Business Incubation Units, and Fablabs, which are being set up in various dzongkhags to encourage innovation, especially in rural areas.

“By creating a conducive environment for startups, we are not only providing youth with the opportunity to create their own jobs but also contributing to the development of a more diversified economy,” Lyonpo Namgyal Dorji said.

He further emphasised the financial assistance available through the Economic Stimulus Plan, which includes a proposed startup fund, as well as seed funding and venture capital initiatives. “These efforts aim to reduce the financial barriers that many entrepreneurs face when starting their businesses,” he added.

Addressing the need for a gender-inclusive approach, Lyonpo noted that the Ministry has been taking proactive steps to ensure gender inclusivity in youth employment and entrepreneurship programmes.

Recognising the urban-rural divide in employment opportunities, he also stated that the Ministry is focusing on bridging this gap by promoting rural entrepreneurship.

“By addressing both gender inclusivity and urban-rural employment gaps, we are ensuring that no one is left behind in our efforts to create an inclusive, forward-looking economy,” Lyonpo said.

Greater Bhutan Innovation Corridor (GBIC) is a key initiative aimed at fostering tech startups and small and medium-sized enterprises (SMEs). “Through Seed Accelerators, Scale-up Programmes, and angel investing, the GBIC provides essential support for emerging businesses in the tech sector,” Lyonpo Namgyal Dorji said.

With a central focus on youth, the Ministry recognises the need for ongoing collaboration with educational institutions. “Aligning technical training and academic programmes with market demands is critical to ensuring that young people are adequately prepared for the workforce,” he added.

“We are working closely with educational institutions to ensure that the skills taught align with the current needs of the market. This partnership is essential for creating a workforce that is agile, skilled, and ready to meet the demands of a growing economy,” Lyonpo said.