Unemployment can be termed as one of the alarming issues as it has taken its toll in covering the nations with its disastrous consequences. It has now supposedly become a trend to hear the decline of employment in Bhutan due to Bhutanese opting for white collar jobs (Wangchuk, 2012). Therefore, this essay will attempt to describe the devastating consequences related to unemployment on individuals, poverty and the socio-political situation, and factors such as mismatch of skills and expectations, work preferences and lack of entrepreneurship among Bhutanese youth which bring an increase in the unemployment rate in Bhutan. According to The Cost of Unemployment to the Economy (2011), the issue of unemployment is about the impact on individuals. “When a person is unemployed, there is understandably an immeasurable impact on their standard of living.” (The Cost of Unemployment to the Economy, 2011). Unemployed people are unable to earn money to meet financial obligations. Prolonged unemployment can shift skills, mostly by sacking the economy of useful skills. It can also force families to reject their children's educational prospects and rob the economy of those future skills. It can also affect individuals' mental and physical states, shortening lifespan. It also tends to increase vulnerability to a myriad of diseases such as malnutrition, disease and loss of self-esteem leading to depression. The second problem linked to unemployment can be poverty. The Poverty Commission has identified unemployment as a major cause of poverty (Saunders, 2002). In the period 1972-73, one person in six (16.6) among the unemployed was below the poverty line (Saunders, 2002). With... half the paper... vice versa Bhutan will also have to bear the considerable consequences. Works Cited A. Chhetri, P. (2011, July 15). Youth unemployment remains high at 9.2%. Bhutan Observer, p.3.B. Choden, T. (2011, August 14). Enough for everyone. Bhutan Times. Retrieved from http://www.bhutantimes.bt C. Rinchen, K. (2008, July 17). Education Reform in Bhutan: Meeting the Challenge of Youth Employment.D. Saunders, P. (2002). Social Policy Research Center Discussion Paper No. 118. Sydney:Social Policy Research Centre.E. Wangchuk, P. (2012, September 14). The irony of unemployment in Bhutan. Bhutan Observer. Retrieved from http://www.bhutanobserver.bt