The Royal Government of Bhutan (RGoB)places great emphasis on the creation of a sufficient numberof high-quality jobs to achieve full employment. This reportaims to provide robust evidence to inform the RGoB’spolicy-making with regard to critical labor marketchallenges, underlying causes and potential solutions.Building on a conceptual framework introduced in the WorldBank’s World Development Report 2013: Jobs, the analysistakes into account policy fundamentals that are essentialfor both growth and job creation, labor market policies thatcan help ensure that growth translates into employmentopportunities and a list of policy priority areas where jobsmight do the most for development given Bhutan’s specificcountry context. The report relies primarily on two datasources that provide recent robust and complementaryinformation on labor supply and demand in Bhutan: First, theBhutan Labor Force Survey (BLFS) 2014, a representativelabor force survey with a newly expanded questionnaire thatwas implemented by the MoLHR with support from the WorldBank. Second, the Bhutan Enterprise Survey (BES) 2015, asurvey of firms conducted by the World Bank that improvedthe understanding of the conditions, experiences andperspectives of Bhutan’s nonfarm private firms. The reportalso uses evidence from previous studies, legal documents,and discussions with experts and stakeholders from Bhutanand beyond.