Dechen Dolkar
The Department of Employment and Entrepreneurship has proposed a budget of Nu 216 million for the Youth Engagement and Livelihood Programme (YELP) as part of the Economic Stimulus Plan. This budget will be spread over two financial years, from FY 2024-25 to FY 2025-26, with Nu 108 million allocated for each year.
Although the department announced in July that funds for YELP would be released in August, the disbursement has been delayed due to the budget not yet being made available.
The chief programme officer of the Department, Rigden Wangchuk, said that the government had already approved the budget and expects it to be released within the next couple of weeks.
The programme aims to support school-to-work transitions by providing jobseekers with opportunities to improve their skills, gain work experience, and connect with potential employers.
YELP aims to engage approximately 1,000 youths each year, with an annual budget of Nu 108 million.
Since its launch in 2019, the programme has supported 5,891 youths for 11,331 available positions.
Currently, the Department has registered 45,177 jobseekers and 62,154 employers.
Rigden Wangchuk said that over 62 percent of youths who participated in a recent survey were employed and had their positions regularized by their employers.
To qualify for YELP, applicants must be registered job seekers aged 18 to 29 with at least a class X qualification.
The government used to provide a monthly stipend of Nu 5,000 to newly employed youths, regardless of their qualifications during the earlier programme. Employers are also required to contribute an additional amount.
Rigden Wangchuk said that during the Covid-19 pandemic, age restrictions for YELP were temporarily lifted to increase youth participation.
He also mentioned that the department has revised its guidelines to align with the national minimum wage rate. This update follows reports of some employers failing to pay employees adequately.
Under the revised guidelines, the government will now provide the following monthly stipends: Nu 9,000 for university graduates, with employers contributing at least Nu 6,000; Nu 8,000 for diploma holders and National Certificate levels 2 and 3, with employers contributing a minimum of Nu 5,500; Nu 7,000 for Class XII graduates and certificate holders, with employers required to pay at least Nu 5,000; and Nu 6,000 for Class X graduates and below, with employers providing a minimum of Nu 4,500.
Employees under YELP are also entitled to provident funds, gratuities, and other contributions.
Rigden Wangchuk said that YELP’s main goal is to revive the private sector by providing government incentives to support employees’ salaries. He encouraged employers to regularize the employment of these youths. However, he mentioned that some employees leave the programme after one year in search of better opportunities.
In addition to YELP, the department has proposed a separate budget allocation of Nu 45 million for internship support and Nu 180 million for special support.
The internship programme, which lasts between one to three months and can be extended to six months, offers interns in government sectors a monthly stipend of Nu 6,000. The goal is to involve 1,250 youths annually. Special support is designated for government-initiated projects and is fully funded by the government salary based on the qualifications of youths. This initiative aims to engage 1,000 youths each year.
The department also plans to send approximately 2,500 youths abroad for employment opportunities.
Rigden Wangchuk stated that with these initiatives, the employment rate in the country is projected to reach 97.5 percent by 2029.
Currently, Bhutan’s overall unemployment rate is 3.5 percent, but youth unemployment is notably higher at 15.9 percent. The Ministry of Education and Skills Development estimates that over 83,000 job seekers will enter the job market by 2029.
YELP, launched by the Ministry of Industry, Commerce and Employment in 2019, is one of the key initiatives aimed at addressing these employment challenges.