J&K unemployment rate at 6.7%, nearly twice national average

Srinagar, Mar 31: The Government of Jammu and Kashmir on Tuesday acknowledged that the Union Territory’s unemployment rate stands at 6.7 per cent—nearly double the national average of 3.5 per cent—highlighting the scale of the employment challenge facing the region.

As per official data, around 3.49 lakh youth are currently registered with District Employment and Counselling Centres (DE&CCs), while a significantly larger number remain outside the formal system, continuing to struggle for livelihood opportunities.

The figures were disclosed in response to Starred Assembly Question No. 1097 raised by MLA Ghulam Mohi-ud-Din.

The data is based on the Periodic Labour Force Survey (PLFS) conducted by the Ministry of Statistics and Programme Implementation, covering the 15–59 age group.

Responding to concerns over whether rising unemployment is contributing to issues such as drug abuse and suicidal tendencies among youth, the government acknowledged the elevated unemployment rate and outlined a series of interventions aimed at addressing the issue.

The government stated that registration of unemployed youth is carried out through the Employment Portal and DE&CCs. It clarified that registration is voluntary and not mandatory, indicating that the actual number of unemployed youth could be significantly higher than official figures.

“As of now, 3.49 lakh unemployed youth are registered with these centres,” the government said, adding that many others are not reflected in the system and are independently seeking income-generating opportunities.

The government also highlighted its flagship initiative, Mission YUVA (Yuva Udyami Vikas Abhiyan), which has been developed in collaboration with institutions including IIM Jammu, NABARD, and Jammu and Kashmir Bank, along with other financial institutions and livelihood experts.

According to the government, a diagnostic assessment conducted during the formulation of Mission YUVA revealed that unemployment in J&K is not merely due to a lack of jobs or financial resources, but is rooted in a deeper disconnect between aspiration and access.

On the demand side, the assessment identified factors such as fear of failure, lack of guidance, and limited awareness of government schemes and credit facilities. It also noted a tendency among many youth to prefer low-paying daily-wage work over the perceived risks associated with entrepreneurship.

On the supply side, the government pointed to the absence of a strong grassroots institutional framework, limited field-level capacity, weak linkages with academic institutions, and cumbersome banking procedures as key challenges exacerbating unemployment.

The government further stated that candidates registered with DE&CCs receive regular updates on job opportunities in both government and private sectors. Employers and departments are also provided access to databases of registered candidates for recruitment purposes.

It added that job fairs are being organised across sectors such as retail, manufacturing, finance, and healthcare, where companies conduct direct hiring. “Thousands of youth have already been shortlisted, with some receiving on-the-spot placements,” the government said.

Additionally, under Mission YUVA, a baseline survey covering 24 lakh households has identified around 5.5 lakh potential entrepreneurs across Jammu and Kashmir, signalling a shift towards promoting entrepreneurship as a key strategy to tackle unemployment in the region.