Thinlay Dorji, Yarab Institute for Hospitality Management and Ms. Yeshey Choden, Department of Technical Education, Ministry of Labor and Human Resources for helping me identify unemployed university graduates for the survey. The research study examines the unemployment of university graduates on the causes of unemployment related to theories of unemployment. A qualitative method using semi-structured interviews with 10 unemployed university graduates was chosen for the research study.
INTRODUCTION 1
- Importance of youth and Employment 1
- Statement of Problem 2
- Unemployment Scenario 3
- Objectives of the study 4
- Scope and Limitation of the research 4
- Relevance of the Project 5
- Structure of the Paper 5
Bhutan is a country guided by gross national happiness (GNH) development philosophy and one of the indicators of happiness is gainful employment. One of the major contributing factors of youth unemployment may be increasing job seekers with higher qualifications. The objectives of the paper are to investigate the determinants and psychological impact (consequences) of unemployment from the unemployed graduate's perspective.
LITERATURE REVIEW 6
- Definition of Youth 6
- Unemployment concept and challenges 6
- Previous study of unemployment in Bhutan 7
- University graduate‟s unemployment in different countries 8
- Consequences of Youth Unemployment 9
- Theories of Unemployment 11
- Empowerment and Advocacy Theory 12
The problem of youth unemployment is related to the educational background and qualifications of young people compared to the skills required in the labor market. Several studies show that high youth unemployment has profound consequences for society, the economy and the individual. For example, rising crime due to youth unemployment has severely damaged foreign direct investment in South Africa.
The direct impact of youth unemployment on the economy is the loss of production due to unproductive youth. Mullen (1985) found that the individual loses a healthy sense of values; his status is lost in his own eyes and imagination and in the eyes of his peers due to unemployment. the psychological effects of unemployment by various researchers to date include;. depression, anxiety, hopelessness, apathy, low self-esteem and confidence, inability to cope with problems, moodiness and alcoholism. No in-depth study examining the consequences of youth unemployment has been conducted in Bhutan.
According to the study on 'Juvenile Crime as an Emerging Youth Problem in Bhutan', the analysis of crime figures from 1988 to 2003 shows that 514 crimes were committed by youth (under 18 years of age) in Thimphu, the capital. The qualitative study conducted through interviews and semi-structural questions by NSB Bhutan (2015), among 44 male juvenile inmates from Central Prison (Chamgang) and YDRC, revealed that the causes of crime are due to family disruption, personality disorders, neglectful parents and peer pressure, alcohol abuse, money problem and unemployment. 2013), the Royal Bhutan Police have identified 38 male youth gangs and 18 female youth gangs in Bhutan. Frictional unemployment 'arises from the normal movement of people in the labor market'. “Young people leave school and enter the workforce, older people retire and leave the workforce, and some people leave school temporarily, often to raise children, and then rejoin. it' (Parkin and King, 1995:584).
According to Parkin and King, structural unemployment occurs when the number of available jobs in a particular region or industry falls.
RESEARCH METHODOLOGY 13
- Qualitative Method 13
- Data Collection 13
- Sampling method and sample size 14
- Data Analysis 15
The secondary data available from the MoLHR publications “Beyond Graduation Survey Report” is used to analyze the perception of graduates in the choice of jobs and employment sectors. It was also easy for the author to get a clear understanding of issues as the author knows some participants personally and some participants were identified based on recommendations from friends and family members. The four participants were identified through personal contact with researchers, and six participants were identified with the help of a research colleague.
The participants came from different qualification backgrounds, some participants came from university in the country and some were graduates from India. In other words, different themes are derived through the coding process and similar responses from the respondent are placed under the same theme for the purpose of understanding and interpretation. The different views of the respondent are analyzed differently where necessary and the exact same views of the respondent are stated to demonstrate the deeper concern about the issues.
The negative psychological and financial impact of unemployment is presented in part 3, and the last part shows the employment plan. The author used secondary data to supplement the findings regarding the perception of job choice among graduates. For a clear understanding of the findings, a synthesis of the findings is made in relation to the relevant literature and the theory of unemployment, which shows the intensity of the impact of unemployment on the macro (state level) and micro level (individual level).
A summary of the findings is presented on frameworks developed based on the convenience and appropriateness under each section/part mentioned above.
RESEARCH FINDINGS 16
- Profile of Respondents 16
- Determinants of university graduate‟s unemployment 17
- Mismatch of qualification & skills and experience 17
- Perception and Preference of Graduate for choosing job 18
- Lack of Information and Awareness 20
- Unemployment Impact on Psychological well-being 20
- Stress, Disappointment, Low Self-Esteem and Depression 20
- Financial Impact of Unemployment 22
- Plans to search job 23
The eight candidates expressed that one of the main reasons for unemployment among university graduates is a mismatch between qualifications and qualifications and experience requirements for a job. Company reputation is important to 5% of candidates and other factors are important to 2% of candidates. The three candidates also argued that lack of information is one of the causes of unemployment for them, stating that they had to live in the village most of the time and rely on few sources of information.
Only one of the participants attributed that his psychological well-being was not affected at all, as he has a supportive family and relatives, but admitted that it is better to work than to remain unemployed. Six of the participants stated that their stress level has increased, as they remain unemployed and feel too weak to meet friends and relatives. One of the graduates said that he had a big hope and dream, but unemployment is a big obstacle to achieving his hopes and dreams.
It was clear that most of the respondents were in good health, but two participants expressed signs of depression. On the other hand, it was good to know that the rest of the participants expressed that they have good parents, siblings and friends who encourage them. Most of the respondents agreed that they get full financial support from their family and relatives, and they do not feel much pressure.
The three graduates expressed internships as one of the keys to gaining experience that helps land a job.
ANALYSIS OF RESEARCH FINDINGS 25
Determinants of unemployment and its Impact 25
The seven graduates said that one of the main reasons for unemployment among graduates is low monthly salary. The graduates indicated that salary paid by the employer is minimal which is insufficient to meet their basic needs forcing them to remain unemployed. However, the same candidates said that they prefer a higher salary and that they have to start working if they remain unemployed for a long time, even a negligible salary.
These factors are summarized under micro factors leading to unemployment as it depends on individual's preferences to choose the right kind of job. The preference and perception varies from one unemployed candidate to another, but the majority of them agreed that monthly salary is one of the keys for them to look for a job. Factors such as low wages, job security, lack of training opportunities not only discourage new job seekers from entering a job, but also force working individuals to leave a company.
Regarding unemployment theories, it can be concluded that there is both frictional unemployment (graduates have not accepted the job offer) and structural unemployment (general concerns that prevent entry into the labor market). Two graduates point out the lack of awareness about the availability of jobs and training opportunities in the market. The responses also show that some of the graduates are aware of MoLHR programs.
The summary of discussion on graduate unemployment in relation to relevant unemployment theories and their impact level is presented in table 5.1.
Psychological Impact of Unemployment 27
Internship Program). graduates expressed that they have to sacrifice their financial need as they are not working. To include the financial and psychological impact of unemployment, it has a multiplying negative impact on individuals and their quality of life. However, they were not sure what kind of business they wanted to take up, but hoped that they would get the financial support of their parents and family.
Focusing on some specific areas can lead to a more effective solution to the unemployment issue. The sample size for this paper is limited to 10 respondents and the finding shows only a symptom of the negative impact of unemployment on an individual's psychological well-being. To understand the deeper and broader impact on psychological well-being of unemployment, the researcher can focus on qualitative research with a larger sample (40-50). A study may focus on following an unemployed graduate over a longer period to investigate the psychological impact over time.
The result reveals that graduates believe that the main reason for graduate unemployment is due to mismatch between the expectations of graduates and employers in terms of skills, knowledge and experience required for a job. In line with the literature, the results show that unemployment has a negative impact on psychological well-being. Family Effects in Youth Employment” The Youth Labor Market Problem: Its Nature, Causes and Consequences.
Micro Characteristic of Youth Unemployment in Bhutan: A Cross-Sectional Study” Department of Labor Market Information and Research, Ministry of Labour, Ministry of Labor and Human Resources, Thimphu, Bhutan.
Importance of Employment and plan to find job 28
RECOMMENDATION AND CONCLUSION 30
- Emphasize on reskilling programs to University graduates 30
- Strengthen university graduate Internship Program 30
- Improve on Awareness and Counseling Program 30
- Extend support through entrepreneurship program to long unemployed
- Work closely with stakeholders 31
- Future Research 31
- Conclusion 32
The Ministry of Human Rights and Human Rights should conduct a market survey specifically for university graduates to identify the skill gaps of university graduates and then focus on reskilling them for the skills required by the market. The Ministry of Human Rights and Human Rights can focus on strengthening the existing graduate internship program by increasing the number of places and improving monitoring programs. MZHR can regularly raise awareness among university graduates about labor market conditions and employment opportunities by preparing awareness programs at the university before graduates enter the labor market.
It was clear from the research findings that when a graduate cannot find a job, he is mentally strong to start a business as a last resort. Extending training and financial support to such graduates can help graduates become self-employed. The government needs to act as an intermediary between the employer and the university to bridge skills gaps by improving the relevance of university courses.
Graduates also see their unemployment as a result of a lack of awareness of vacancies on the labor market. The graduate experiences negative consequences such as increased stress levels, low self-esteem, demotivation, depression, deteriorating relationships with family members and friends and poor living standards due to inadequate income. Recent Trends in Graduate Unemployment and Higher Education in China, Contemporary Chinese Political Economy and Strategic Relations”.
Are you getting the same financial support as you did when you were in college, or are you finding it difficult to get financial support from your parents and relatives?
Interview Sample Questions 37
Unemployed youth by duration of job search 2
University graduate supply forecast 3
Criteria for selecting job by graduates 18
Psychological impact of unemployment 28
