As per the economic survey report of 2016, the rate of unemployment in Jammu and Kashmir is higher than the average national unemployment rate. Various past surveys tell us that Jammu and Kashmir has a labour force of about 4.3 million. The labour force participation rate was a little over 42 per cent and the unemployment rate was has been recently around 15-16 per cent.
In recent surveys, we recorded an estimated of 65000 unemployed persons in Jammu and Kashmir.
The current slowdown in Indian economy is well depicted in Jammu and Kashmir’s labour market conditions as an unemployment rate of 7.9 per cent in June 2019 was, in fact, the highest in thirty-three months since September 2016. Also, the maximum percentage of youth of Jammu and Kashmir has crossed their age limit or at the borderline.
To tackle the unemployment rate in Jammu and Kashmir, various schemes have been started by the Central government as well as by the UT Govt.
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The Unemployment rate in Jammu and Kashmir

In the age group of 18 to 29 years, the unemployment rate is of 13.2 per cent. In Jammu and Kashmir, the labour force is about one per cent of India’s labour force and the labour force participation rate is similar to that of India, but the unemployment rate is twice as high it is in India.

Labour force participation rate

In August 2019, the labour force participation rate rose a bit to 43 per cent and the unemployment rate rose sharply to 22 per cent. But all labour statistics estimates related to Jammu and Kashmir for the month of August 2019 are unreliable.
They are unreliable because they are based on an extremely small sample of  125 respondents from just 36 households.

No Business for the Entrepreneurs in Jammu and Kashmir

In reality, the UT of Jammu and Kashmir could be suffering a much-shrunken labour force and near-zero unemployment rate. In the lockdown period, shops and markets are closed, there is no one to offer jobs to unemployed. And, there is no business for the entrepreneurs.
Unemployment is a curse for every developing nation.No nation or state or UT can develop unless its labour force is engaged in gainful employment. The whole national income is the sum total of wages, rent, profit and interest.
Thus, when these common factors are employed then national income increases and economic growth takes place. The work participation rate for Jammu and Kashmir was estimated at 34.5 per cent as against the All India figures of 39.8 per cent as per census 2011. According to the 2011 census, the number of total workers in Jammu and Kashmir stood at 43.23 lakhs of which the main workers constituted 26.44 lakhs.

From time to time Government announced various schemes to control unemployment and poverty. Some of them are as under:-


  • 1) Swaranajayanti Gram Swarozgar Yojana(SJGSY)
  • 2) Swaranajayanti Shahari Rozgar Yojana(SJSRY)
  • 3) Prime minister Employment generation Programme(PMEGP)
  • 4) Jammu and Kashmir self-employment scheme.
  • 5) Sher-I- Kashmir Employment and welfare programme for youth(SKEWRY)
In Jammu and Kashmir rural people are ignorant of various schemes sponsored by the government.
Unemployment is a social issue of serious concern at the present for the nation as well as for Jammu and Kashmir.
The UT of Jammu and Kashmir like most of the other states of our country has been facing the problem of unemployment since long. As per the 68th round of NSS July 2011 to June 2012, Jammu and Kashmir have the highest unemployment rate of 4.9 per cent in comparison to its neighbouring states.

How to Control unemployment?

To control the unemployment, the higher administration of Jammu and Kashmir should initiate the three factors I.e primary, secondary and tertiary in a balanced manner. Among the three sectors, the industrial sector is key from both employment and income aspect to the nation.
In India, this sector contributes  30 per cent to GDP and gives employment to 172000 people. In order to curb unemployment, the large scale and heavy industries should be set up in Jammu and Kashmir at the earliest. Also, higher administration as well as UT govt.
Encourage more and more youth by providing financial support with a decent subsidy so that unemployment rate can be controlled and at the same time, UT of Jammu and Kashmir save Rs 800 crores approximately which it pays for importing livestock.
Also, the administration of UT of Jammu and Kashmir provides small loans to youth at a small interest rate so that they can establish their small business units. Today, the government should take serious and fast track measures to tackle the unemployment rate.