From Decline to Rise

17/03/2025

The recent announcement by Chief Minister Omar Abdullah regarding the unemployment rate in Jammu and Kashmir presents a nuanced picture of the region's labor market. While the unemployment rate has indeed decreased from 6.7 percent in 2019-20 to 6.1 percent in 2023-24, the data reveals a concerning uptick from the previous year's rate of 4.4 percent in 2022-23. This fluctuation underscores both the progress made and the challenges that remain in addressing unemployment in the Union Territory. On the positive side, the government's efforts to generate livelihood opportunities through various schemes have borne fruit, with 9.58 lakh jobs created in recent years. This has been reflected in the improved Labor Force Participation Rate (LFPR) and Workers Population Ratio (WPR), which rose to 64.3 percent and 60.4 percent, respectively, in 2023-24. These indicators suggest that more individuals are actively participating in the labor market, and a larger proportion of the population is engaged in productive economic activities. Such improvements are critical for fostering economic growth and stability in the region.
However, the rise in unemployment from 4.4 percent in 2022-23 to 6.1 percent in 2023-24 is a cause for concern. This reversal highlights the vulnerabilities in the labor market and the need for sustained and targeted interventions. The post-pandemic recovery, global economic uncertainties, and regional challenges may have contributed to this increase. It is imperative for the government to analyze the root causes of this trend and recalibrate its strategies to ensure that the gains made in previous years are not eroded. The government's focus on rural development and agriculture, as highlighted by Rural Development and Agriculture Minister Javaid Dar, is a step in the right direction. These sectors have immense potential to absorb labor and drive inclusive growth. However, there is also a need to diversify the economy, promote entrepreneurship, and attract investments in emerging sectors such as tourism, information technology, and renewable energy. Skill development programs tailored to the demands of the modern economy can further enhance employability and bridge the gap between job seekers and available opportunities.
Moreover, the government must ensure that its policies are inclusive and address the specific needs of marginalized groups, including women and youth, who often face disproportionate barriers to employment. Strengthening social safety nets and providing support to small and medium enterprises (SMEs) can also play a pivotal role in sustaining employment generation. The reduction in the unemployment rate over the past five years is a testament to the government's efforts, but the recent increase serves as a reminder that the journey toward economic stability is far from over. A proactive, multi-pronged approach that combines short-term measures with long-term strategies is essential to tackle unemployment effectively. Jammu and Kashmir's potential is immense, and with the right policies and sustained commitment, the region can achieve lasting economic prosperity and improved livelihoods for its people.

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