"Bhutan’s Currency and the Jobless Youth: Can the Ngultrum Power the Nation’s Future?"

Bhutan, a country known for its unique approach to development through Gross National Happiness (GNH), faces a growing challenge in its economic landscape—youth unemployment. While the nation has made remarkable progress in modernizing its financial and monetary systems, the stability of the Bhutanese Ngultrum (BTN), the country's currency, remains closely tied to the economy’s ability to generate sustainable job opportunities for its young population. The increasing number of jobless youth highlights the urgent need for economic diversification and financial innovation.

The Bhutanese Ngultrum, introduced in 1974, is pegged to the Indian Rupee (1 BTN = 1 INR), ensuring economic stability and smooth trade relations with Bhutan’s largest trading partner, India. However, this peg also limits Bhutan’s monetary flexibility, making it heavily dependent on Indian economic trends. While this system has helped control inflation, it also means that Bhutan’s currency does not have independent strength in international markets. With limited foreign investment and restricted international trade, the value of the Ngultrum remains relatively low, impacting Bhutan’s economic growth and employment opportunities.

One of the major concerns for Bhutan’s economy today is youth unemployment. Despite an increase in literacy rates and higher education opportunities, many young Bhutanese struggle to find stable employment. The public sector, once the primary employer, can no longer absorb the rising number of graduates, while the private sector remains underdeveloped due to a small domestic market and limited industrialization. The reliance on hydropower exports to India, which generates substantial national revenue, has not translated into job creation for the youth, as the sector is highly capital-intensive rather than labor-intensive.

Another factor contributing to joblessness among Bhutanese youth is the mismatch between skills and market demands. Many young graduates pursue degrees in traditional academic fields rather than vocational and technical education, leading to a shortage of skilled workers in industries such as IT, construction, and entrepreneurship. Meanwhile, sectors like agriculture, which once provided employment for the majority of Bhutanese, are now being abandoned as youth migrate to urban areas in search of white-collar jobs. This shift has led to increased urban unemployment, with a significant portion of the youth population either unemployed or underemployed in low-paying, informal jobs.

The economic consequences of jobless youth are significant. A growing unemployed population can lead to higher dependency rates, increased poverty, and social instability. Additionally, Bhutanese youth who do not find jobs within the country often seek opportunities abroad, particularly in Australia and the Middle East, leading to a brain drain that further weakens Bhutan’s domestic workforce and economy. The outflow of skilled workers reduces productivity and innovation, limiting the potential for economic expansion.

To address these challenges, Bhutan must focus on economic diversification and financial reforms. Encouraging entrepreneurship, strengthening the private sector, promoting foreign investment, and expanding tourism can generate more job opportunities for young Bhutanese. The government has also taken steps to promote digital finance, enabling businesses and startups to access capital more easily. Additionally, integrating financial literacy programs and vocational training into the education system can better equip youth with the skills required for a changing job market.

While the Bhutanese Ngultrum remains stable, its real strength lies in the economic opportunities it can create for the people. If Bhutan successfully invests in youth empowerment, job creation, and economic innovation, the currency and economy will gain greater resilience and self-sufficiency, ensuring a prosperous future for the nation.