The recent Labour Force Survey Quarterly Report has revealed a startling reality about Bhutan’s labour market: a significant portion of the workforce, 35.23 percent, has no formal education. Even more striking, in rural areas, nearly half of the employed population—44.58 percent—lacks any formal schooling. Yet, these individuals continue to thrive in the job market, while those with higher degrees face mounting challenges in securing employment. This is the second time the survey has reached the same conclusion, which lays bare a deeper problem that requires urgent attention.
What does this mean for Bhutan? The data exposes a growing disconnect between the country’s education system and the demands of the labour market. While our education policies have focused on increasing access to higher education, the economic reality on the ground tells a different story. Many of the sectors that drive employment—agriculture, construction, and small-scale businesses—do not require formal education but rather practical skills learned through experience. In rural areas, where agriculture remains the backbone of the economy, the lack of formal education does not hinder employment; instead, it reflects a system where local knowledge and manual labour are the cornerstones of survival.
This situation, however, should not be romanticised. The high number of uneducated workers in rural areas highlights a systemic issue of inequality. Access to formal education is limited in many rural communities, and even where it is available, economic pressures force many children to abandon school early. As a result, the rural workforce remains trapped in low-skill, low-wage jobs, with little opportunity for upward mobility. These individuals are contributing to the economy, yes, but they are doing so without the tools that could improve their livelihoods and break the cycle of poverty.
On the other hand, the report highlights another worrying trend: educated youth unable to find suitable employment. This mismatch between higher education and available jobs creates a pool of disillusioned, unemployed graduates who were promised better opportunities through education. The stark reality is that the job market in Bhutan has not evolved fast enough to accommodate the growing number of degree holders. Many graduates end up underemployed, taking on jobs that do not require their qualifications, while others remain unemployed altogether.
We are now at a critical juncture. The country’s development narrative must shift to address these dual challenges. Education policy must be realigned with the needs of the labor market, emphasising vocational training and skill development that match the country’s economic priorities. The government should invest in creating more high-skill jobs in sectors like technology and innovation to absorb the growing educated workforce. Simultaneously, rural education must be improved to ensure that even those without formal schooling are equipped with the skills to compete in a modern economy.
We cannot afford to let our workforce be divided by education. If we fail to act, we risk deepening the urban-rural divide, leaving behind a large portion of our population. We must take a bold and strategic approach—one that ensures every Bhutanese, educated or not, has the opportunity to contribute meaningfully to the nation’s future.
Our education reform is in dire need of pace, depth, and foresight. Tarrying awhile will only widen the gap.