| Project Detail |
The project aims to increase the employability of youth in Bhutan and help the government reduce youth unemployment, which has risen because of the coronavirus disease (COVID-19) pandemic followed by the economic downturn. It will support the institutional capacity of the Ministry of Education and Skills Development (MESD) to implement its strategic plan for transforming the technical and vocational education and training (TVET) system. The project will help expand the breadth and depth of TVET courses for youth, especially job seekers, women, and people with disability, considering industry demands, youth aspirations, and emerging job opportunities. The teacher training and work-based training will also be supported to improve the quality and relevance of training. Further, aesthetically appealing, and green infrastructure in selected TVET institutions will be developed to increase TVET enrollment capacities and attract more youth to participate in TVET. Project Name Pathways for Emerging Skills and Jobs Project Project Number 54464-001 Country / Economy Bhutan Project Status Approved The project aims to increase the employability of youth in Bhutan and help the government reduce youth unemployment, which has risen because of the coronavirus disease (COVID-19) pandemic followed by the economic downturn. It will support the institutional capacity of the Ministry of Education and Skills Development (MESD) to implement its strategic plan for transforming the technical and vocational education and training (TVET) system. The project will help expand the breadth and depth of TVET courses for youth, especially job seekers, women, and people with disability, considering industry demands, youth aspirations, and emerging job opportunities. The teacher training and work-based training will also be supported to improve the quality and relevance of training. Further, aesthetically appealing, and green infrastructure in selected TVET institutions will be developed to increase TVET enrollment capacities and attract more youth to participate in TVET. Project Rationale and Linkage to Country/Regional Strategy Bhutan is a small landlocked and mountainous country with a narrow economic base. Despite these challenges, the country achieved annual average gross domestic product (GDP) growth of 5.9% during the Eleventh Five Year Plan, 2013-2018. However, GDP contracted by 10.0% in 2020, followed by modest GDP growth recovery of 4.1% in 2021 and 4.7% in 2022, because of the COVID-19 pandemic, as prolonged community quarantines and travel restrictions disrupted the economy. The unemployment rate was 2.7% (men: 2.2%, women: 3.3%) in 2019 but increased to 5.9% (men: 4.4%, women: 7.9%) in 2022 because of mismatches in job seekers and aspirations, qualifications, and experience, and available jobs in the market, which were amplified by COVID-19 disruptions. This is particularly pronounced for youth, and the youth unemployment rate (aged 15-24 years) worsened to a record high of 28.6% in 2022, more than double the rate of 11.9% in 2019. Youth unemployment among women reached an alarming 32.8%, compared with 24.4% among men, in 2022. In addition, out of a population of about 763,000 in Bhutan, more than 30,000 live abroad and the number of Bhutanese going abroad has been increasing since 2022 because of economic uncertainties and limited education opportunities. Need for economic diversification. Bhutans economy has been vulnerable to external shocks. Economic growth is driven by tourism and hydropower. Tourism was the hardest hit industry during the pandemic. While hydropower provided stable revenues even during the pandemic, the sector does not create large numbers of jobs after hydropower construction is completed. The agriculture sector accounted for 43.5% of employment in 2022, but its share has been declining. Promoting private sector development is crucial for economic diversification in manufacturing and services, but the private sector is weak in Bhutan because of a small domestic market and limited access to foreign markets, finance, internet, and connectivity. The private sector also faces hiring challenges because of job applicants lack of required technical skills, work experience, and qualifications. In addition, few employers can allocate resources for employee training while continuous professional development of employees is important to improve productivity and technology adoption. Impact Productive and gainful employment created (Twelfth Five Year Plan, 2018-2023) |
