Nearly 35 per cent of the country’s working-age population is economically inactive. This means these individuals are neither working nor actively seeking or available for work during the reference period. International Labour Organisation classifies all individuals aged 15 and older as part of the working-age population.
The working-age population is divided into two major groups: economically active and economically inactive.
According to the third quarterly labour force survey report, the working-age population in the country is estimated at a little over 600,000 persons.
Of it, more than 300,000 persons are economically active while a little more than 200,000 are economically inactive.
Typically, economically inactive or persons outside the labour force include full-time students, people engaged in household or family duties full-time, and retired individuals.
The economically inactive population comprises more than 63 per cent females and over 36 per cent males.
The report also shows that most of the economically inactive people are in rural areas with figure standing at around 56 per cent while around 43 per cent are in urban areas.
The overall Labour Force Participation Rate or LFPR for the third quarter stands at around 65 per cent. According to the International Labour Organization, LFPR is a measure of the proportion of a country’s working-age population that engages actively in the labour market.
The lowest Labour Force Participation Rate is found in the youngest age group of 15-19 years, with inactivity rate at almost 93 per cent.
As people enter the workforce, LFPR increases sharply, reaching 58 per cent among those aged 20-24 and peaking to 86 per cent among 40-44-year-olds.
The inactivity rate during the prime working age of 30-54 is relatively low, ranging from 4 per cent to nearly 20 per cent.
Beyond the age of 55 years, the LFPR declines gradually plummeting to around 35 per cent for those 65 and older.
Overall, the total LFPR and inactivity rate stands at around 65 per cent, and nearly 35 per cent, respectively reflecting the typical pattern of labor force engagement peaking in midlife and declining toward retirement age.
A total of close to 3030 households were selected from twenty districts for the survey. More than 98 per cent of the household has responded to survey questionnaire.
Samten Dolkar
Edited by Phub Gyem
