The newly minted Union territories of Jammu & Kashmir and Ladakh have fared poorly in generating jobs for its young population. The unemployment rate in the erstwhile state stood at 15.89 per cent in the first four months of 2019, making it one of the worst performers on the job generation front. The figure for the entire country was 6.87 per cent during the period. The educated youth bore the brunt of the lack of employment opportunities in the state. The unemployment rate among graduate job seekers in the Valley stood at 25.2 per cent in the same period, according to the ‘Unemployment in India’ report by CMIE.
The national average for the unemployment rate among male remained 5.6 per cent, whereas it stood at 9.4 per cent for J&K. Similarly, the national average for the female jobless rate was 15.8 per cent, which stood at 59.5 per cent in the Valley. While the labour participation rate for Jammu & Kashmir was at par with the national average, the unemployment rate among the youth — that is the job seekers falling under the age bracket of 15-24 — remained around 70 per cent during the period.
Unemployment in India has been a severe problem that has led to poverty and unrest in the economy. In May 2019, the government had confirmed that India’s unemployment rate rose to 6.1 per cent in 2017-18, which was at a 45-year high. The unemployment rate was at highest since FY73.
Graduates under the age of 24 are the ones who are adding the most to the rising unemployment figures of India, says the report. The unemployment rate among the graduates remained 14.72 per cent during Jan-Apr 2019. The jobless rate in urban areas has touched an alarming 9 per cent by Aug 7, according to CMIE’s unemployment database. Higher unemployment rate makes the economy unhealthy and vulnerable to economic shocks. It reduces spending power and slows down the economy.