J&K Labour Market Under Pressure As Jobless Rate Hits 6.7%,Higher Than National Average Of 3.5%: Govt Informs Assembly

Jammu, 09-02-2026: Jammu and Kashmir continues to face notable employment challenges, with the Union Territory’s unemployment rate recorded at 6.7 per cent, significantly higher than the national average of 3.5 per cent, the government informed the Legislative Assembly. The figures, based on the Periodic Labour Force Survey, indicate that while employment trends in the region have fluctuated over recent years, the overall rate has remained consistently above the national benchmark, reflecting structural and demographic pressures in the labour market.

In a written reply to a starred question in the Assembly, the government acknowledged the scale of the challenge and emphasised that employment generation, particularly for youth, remains one of the highest policy priorities. The administration has increasingly shifted its focus from short term job placement measures toward building sustainable livelihood opportunities by promoting entrepreneurship and self employment.

To better understand the employment landscape, a comprehensive baseline survey was conducted across Jammu and Kashmir under Mission YUVA in collaboration with the Employment Department and Union Territory Administration. The survey identified nearly 4.73 lakh individuals in the 18 to 60 years age group. Of these, about 46.8 per cent reported that they were not currently working but were willing to work, highlighting the depth of employment demand, especially among young people entering the workforce.

Officials stated that Mission YUVA has been designed as a transformational initiative to convert youth aspirations into enterprise driven employment opportunities. Since its launch, the programme has received nearly 70,000 applications on the YUVA digital platform, reflecting growing awareness and interest among young entrepreneurs across the Union Territory.

The government further informed the House that Detailed Project Reports have been prepared for approximately 52,875 applicants through Small Business Development Units. After scrutiny by financial institutions, around 47,816 applications were examined. Out of these, nearly 16,141 proposals have been sanctioned so far, enabling beneficiaries to begin their entrepreneurial journey. About 9,500 applications were rejected, primarily due to eligibility gaps or credit related constraints, while the remaining proposals are currently under processing at various stages.

Alongside financial assistance, the government has emphasised capacity building and institutional support. More than 7,300 entrepreneurs have already completed training and mentoring programmes designed to improve business sustainability, financial management and market linkage capabilities. Several additional candidates are currently undergoing skill and enterprise development training under structured support frameworks.

The government also shared that employment promotion efforts are being carried out through multiple schemes, including Mission YUVA, Mumkin, Tejaswini, the Spurring Entrepreneurship Scheme and dedicated women entrepreneurship programmes. These schemes aim to promote inclusive participation by supporting youth, women and first generation entrepreneurs across urban and rural regions.

Officials reiterated that a comprehensive employment roadmap titled “Mission YUVA: From Aspiration to Enterprise – Transforming Jammu and Kashmir’s Employment Landscape” has been prepared to create long term structural improvements in job creation. The strategy focuses on building an ecosystem where youth are encouraged not only to seek employment but also to generate employment for others through enterprise development.

The government maintained that a mission based, multi sector approach is being adopted to strengthen economic participation, improve skill alignment with emerging industries and promote sustainable income generation opportunities. While acknowledging the current unemployment gap, the administration expressed confidence that sustained policy focus on entrepreneurship, skill development and investment led growth will gradually help reduce unemployment levels and strengthen economic resilience across Jammu and Kashmir.