By businessbhutan Prime Minister Dasho
Bhutan finds itself at a critical crossroads, as the ongoing trend of workforce migration poses a growing threat to its socioeconomic development. According to the State of the Nation report presented to Parliament by Prime Minister Dasho Tshering Tobgay, approximately 66,000 Bhutanese about 8.5% of the country鈥檚 population currently reside abroad, many of whom are skilled professionals, educators, and healthcare workers.
While this diaspora contributes positively through remittances and overseas networks, the report highlights a deepening concern: the mass departure of educated and employable citizens is beginning to erode the country鈥檚 capacity for self-sustaining development.
Migration: A Double-Edged Sword
Under the visionary guidance of His Majesty The King, Bhutan has made commendable progress in healthcare, education, and social equity, rooted in the principles of Gross National Happiness (GNH). Bhutanese citizens benefit from free access to quality health and education services, and strong English language skills have empowered many young people to secure well-paying jobs abroad, particularly in Australia and the Middle East.
However, what was once seen as an opportunity to uplift households through remittances is now being reevaluated. The State of the Nation report candidly admits that 鈥渢he migration of educated youth has become one of the most pressing challenges,鈥 leading to the depletion of the nation鈥檚 skilled workforce, weakening industries, and stagnating local businesses.
One visible example is Norzin Lam in Thimphu, a once-thriving commercial street now marked by declining customer traffic and business closures. Entrepreneurs cite a shortage of skilled labor and diminished spending power as key reasons for the downturn. This phenomenon reflects a larger trend where the outflow of talent feeds into economic contraction, in turn encouraging further migration.
Bright Spots Amidst the Crisis
Despite the daunting challenges, there are signs of hope. The civil service a backbone of national governance has seen a marked improvement in staffing and retention. The Royal Civil Service Commission (RCSC) reports that attrition has declined from 16% in 2023 to 6.3% in 2024. As of this year, 8,788 civil service positions have been filled, restoring institutional functionality to pre-pandemic levels.
Additionally, the National Reintegration Programme has registered 573 Bhutanese returnees, of whom 170 have already returned home to resettle and contribute domestically. This signals a small but promising trend of reverse migration that could, with the right incentives, be scaled up.
A Structural Issue Demanding Systemic Solutions
While improved retention in public service and repatriation initiatives are encouraging, migration remains largely driven by structural issues limited job opportunities, low wages, and lack of career growth in Bhutan鈥檚 private sector. Experts argue that unless these foundational challenges are addressed, migration will persist despite short-term interventions.
鈥淢igration is not just an economic issue, it鈥檚 a national concern,鈥 said a local economist. 鈥淲e鈥檙e losing not just manpower, but also innovation, leadership, and the social capital that holds our communities together.鈥
Strategic Response: Economic Transformation in Focus
In response, the government has committed to three landmark initiatives aimed at reversing the outmigration trend and fostering inclusive economic growth:
I The Gelephu Mindfulness City (GMC): Envisioned as a gateway for international cooperation and green innovation, GMC aims to create thousands of jobs in high-value sectors such as health, education, renewable energy, and wellness tourism. This flagship project reflects Bhutan鈥檚 aspiration to develop a modern, sustainable economic hub that can retain talent and attract global partnerships.
II The 13th Five-Year Plan (FYP): With a focus on decentralization, youth employment, and public infrastructure, the FYP is designed to stimulate economic activity across all dzongkhags. It emphasizes productivity, entrepreneurship, and vocational training as key levers for national development.
III The Bhutan 21st Century Economic Roadmap: This long-term vision seeks to diversify Bhutan鈥檚 economy, reduce dependency on hydropower exports, and unlock new sectors such as digital technology, creative industries, and green manufacturing. A central tenet of the roadmap is to generate quality employment within the country, thereby addressing the root causes of youth migration.
A Call for National Unity and Innovation
As Bhutan steers through this migration crisis, it is becoming increasingly clear that the solution lies not only in policy but in collective civic action. The private sector must become more competitive; educational institutions must align more closely with labor market needs; and communities must create environments where young people see opportunity not limitation.
The government鈥檚 ambitious development blueprint offers a hopeful vision, but its success depends on implementation, sustained investment, and public trust. As Bhutan rebuilds its human capital base, initiatives like DeSuung Skilling Programmes, Gyalsung National Service, and targeted reintegration support must be scaled up and made more responsive to ground realities.
While workforce migration may currently pose a significant challenge for Bhutan, it also serves as a clarion call for reform and reinvention, accoirding to the report. 鈥淏y building an economy that is inclusive, innovative, and future-ready, Bhutan has the potential not only to retain its citizens but to attract them back reaffirming the country鈥檚 long-held vision of balanced and sustainable development under the philosophy of Gross National Happiness,鈥 states the report.
Sherab Dorji from Thimphu