Jammu and Kashmir stands at a defining moment in the evolution of its labour economy, where persistent employment challenges coexist with visible policy efforts to stabilize growth and expand livelihood opportunities. With unemployment estimated at around 6.7 per cent, compared with the national average of nearly 3.5 per cent, the numbers underline the structural nature of the employment issue in the Union Territory. These statistics do not merely represent job shortages but reflect deeper economic patterns shaped by geography, historical disruptions, sectoral imbalances, and demographic pressures. Addressing such realities requires long-term, carefully structured, and locally responsive policy interventions rather than short-term corrective measures.
The labour landscape of Jammu and Kashmir has always been influenced by its terrain and economic structure. Mountainous geography, climate-dependent activity cycles, and a relatively smaller industrial base have historically limited large-scale job creation. Even today, a significant share of the workforce remains dependent on agriculture, horticulture, tourism, and small service sector enterprises. These sectors remain vital for economic sustenance and regional identity, yet they often lack the capacity to absorb the rising pool of educated youth entering the labour market every year. This mismatch between education expansion and employment absorption has gradually widened the gap between aspiration and opportunity. Labour surveys and baseline assessments suggest that a notable segment of the working-age population is either underemployed or engaged in informal employment with unstable income patterns. Many individuals continue to express willingness to work but struggle to find suitable opportunities that match their skills or income expectations. This situation reflects an economy that is still transitioning from traditional livelihood models to diversified, modern employment structures. Such transitions are rarely immediate and often require strong policy continuity and investment in human capital. Policy orientation in recent years has gradually shifted from conventional job provisioning models toward entrepreneurship-led employment generation. Initiatives such as Mission YUVA reflect an attempt to reshape employment thinking by encouraging youth to move toward enterprise creation. The response from young aspirants has been notable, with strong participation in training, enterprise application processes, and financial support programmes. The preparation of detailed business proposals, institutional scrutiny, and financial sanction mechanisms indicates a structured attempt to convert entrepreneurial intent into practical economic outcomes. If sustained, such initiatives can gradually create localized employment ecosystems. However, entrepreneurship-driven growth requires continuous institutional support. New enterprises often face early-stage vulnerabilities related to market access, financial literacy and long-term sustainability. Expanding mentorship networks, strengthening credit access frameworks and creating stronger local supply chains can improve enterprise survival rates and enhance employment generation potential. Building district-level enterprise clusters linked to local resources may further strengthen job creation capacity. Skill development remains a critical pillar in employment transformation. While access to education has expanded significantly, there is an increasing need to align training programmes with emerging growth sectors. Areas such as tourism services, renewable energy, logistics, digital services, and value-added agriculture offer promising opportunities. Stronger collaboration between training institutions, industry bodies, and local enterprises can create more direct employment pathways for youth. Institutional coordination across sectors is equally essential. Employment growth is closely linked with industrial policy, infrastructure expansion, investment facilitation and rural economic strengthening. Integrated planning across departments can accelerate job creation while reducing regional disparities. Inclusive policy focus must also ensure that women, rural youth and informal sector workers receive adequate support and access to economic opportunities.
Jammu and Kashmir’s job market is complicated yet changing. A more balanced employment framework driven by enterprise development, skill improvement, and inclusive involvement appears to be emerging in the region. Jammu and Kashmir can build a robust labour ecosystem that promotes economic stability, social inclusion, and long-term regional development with firm policy direction, collaborative governance, and community participation.