Over the period last ten years Jammu and Kashmir (J&K) experienced radical increase in its unemployment rate which stand as a testimony to its economic malady as the UT has been upfront to slowdown in almost all the sectors. The unemployment rate which was approximately 5% during 2017-18 and 2018-19, saw an increase to 6.7% in 2019-20. Thereafter, it recorded substantial increase in some quarters and was as high as 11.8% 2022-23, 23.09% in March 2023, and 18.3% in January 2024. These figures indicate that J&K is swaying through highest unemployment rate which is not a positive sign. The growing unemployment rate observed especially last 8 years manifest that something has gone seriously wrong which needs targeted economic policies and development initiatives on priority to address unemployment challenges in the UT. One of the contrasting feature unemployment rates over the past decade in Jammu and Kashmir (J&K) annually, is that it has been consistently higher than the national average. The unemployment trends at National level for the same period show that it was 5.8% in 2018-19, 4.8%in 2019-20, 4.2% in 2020-21, 4.1% in 2021-22 and 3.2%.2022-23 revealing the economic disorder was only a phenomenon to JK,UT. These figures indicate that J&K's unemployment rate has been significantly higher than the national average in recent years. While national unemployment rates have shown a declining trend, J&K continues to face challenges in reducing unemployment. The higher unemployment rates in J&K highlights the need for targeted economic reforms and policy directives to boost development and address the J&K’S unique challenges.

Impact of Unemployment of Youth

Unemployment in J&K, especially in Kashmir has severe economic, social, and psychological consequences, particularly for the youth. Economically, it has lead to a decline in growth, forced increased dependence on government aid and remittances, and a rise in the informal economy with unstable jobs. For the youth, it has fueled brain drain, drug abuse, and delays in achieving life goals like carrier making, marriage and financial independence. Psychologically, the prolonged joblessness is triggers stress, depression, hopelessness, and can make them, vulnerable to radicalization. Socially, unemployment is contributing to rising crime rates, domestic conflicts, and a breakdown in trust in governance, leading to unrest and protests. Addressing this crisis requires investment in job creation, entrepreneurship, skill development, and mental health support to ensure a stable and progressive society by the government which seems to have not been candidly addressed.

Expectation of Youth from the Budget

With extremely high unemployment in Kashmir, people expect the first budget presented in the assembly after 10 years to focus on job creation, economic revival, and youth welfare. They anticipate large-scale government recruitment drives, incentives for private sector growth, and skill development programs to equip youth with market-ready skills. Economic revival measures such as boosting local industries, promoting entrepreneurship, easing business regulations, and investing in infrastructure are crucial to generate employment. Additionally, people expect unemployment allowances, startup support, and mental health initiatives to address the growing frustration among jobless youth. Reviving agriculture and tourism through subsidies, modern farming techniques, and special tourism incentives is also a key demand. Transparency in governance, fair recruitment policies, and public-private partnerships for employment projects are necessary to rebuild trust. With high hopes resting on this budget, concrete steps are needed to tackle unemployment and provide economic stability, as failure to meet expectations could lead to widespread dissatisfaction and unrest

Missed Opportunity for Job Creation

The J&K Budget 2024-25, with an outlay of ₹1,18,390 crore, aims to drive development through infrastructure, agriculture, tourism, and social welfare investments while addressing unemployment. With ₹3,983 crore allocated for roads and bridges, ₹1,484 crore for urban development, and ₹5,013 crore for agriculture, the budget focuses on short-term job creation through construction and rural development. Tourism expansion, with 12 offbeat destinations and 75 heritage sites under restoration, aims to boost hospitality and local employment. Additionally, the formation of 12,000 Self-Help Groups (SHGs) and ₹1,875 crore for education and vocational training seek to enhance entrepreneurship and skill development. However, challenges such as slow private sector growth, reliance on government-driven employment, and the need for high-skilled job creation remain. While the budget can generate short-term employment and economic stimulus, long-term solutions require private sector investment, industrial growth, and sustained skill development initiatives to ensure lasting employment opportunities in J&K. A major focus is on infrastructure development, with ₹3,983 crore allocated for roads and bridges and ₹1,484 crore for urban development. Improved connectivity and urban expansion can attract private investments in industries, services, and real estate, thereby creating jobs. Additionally, the Holistic Agriculture Development Programme (HADP), with ₹5,013 crore, aims to modernize farming and promote agri- preneurship, offering employment in allied sectors such as food processing and dairy. The current budget seeks to strengthen self-employment and entrepreneurship through initiatives like 12,000 Self-Help Groups (SHGs) and credit-based support for 5 lakh self-employment opportunities. This is complemented by an emphasis on tourism, with 12 offbeat destinations and 75 heritage sites being developed, which can generate employment in hospitality, travel, and handicrafts.
However, the J&K Budget 2025-26 does not explicitly outline a large-scale recruitment drive for filling existing vacancies in the public sector, but it does emphasize employment generation through infrastructure development, self-employment schemes, and private sector growth. While government job aspirants in J&K have long been demanding the filling of vacant positions, particularly in education, healthcare, and administrative services, the budget focuses more on creating new opportunities through entrepreneurship, skill development, and credit-based support. The government has announced initiatives like Mission Youth, Self-Help Groups (SHGs), and financial aid for startups, aiming to generate 5 lakh self-employment opportunities. Additionally, investments in agriculture, tourism, and urban development are expected to create temporary and permanent jobs in various sectors. While some vacancies are being filled in essential services such as police, healthcare, and education, the budget does not provide a structured roadmap for addressing pending government job positions. Over the years, delays in recruitment processes, exam cancellations, and irregularities have caused frustration among unemployed youth. Instead of expanding the government workforce, the budget appears to prioritize private sector growth and entrepreneurship as long-term solutions to unemployment.
However, without a clear commitment to filling public sector vacancies, concerns remain over the fate of thousands of qualified job seekers who have been awaiting government recruitment. If the administration plans to address this issue, it would likely require separate announcements and recruitment notifications outside the budget framework. While the budget presents a pro-development approach, it may not fully satisfy those solely dependent on government jobs, reinforcing the need for policy measures that balance both public and private sector employment opportunities in J&K. Government shall also find ways of relaxing certain norms for youth to encourage start up, personal ventures, partnership enterprise related employment generating activities to combat the alarmingly deepening crisis of unemployment.

Need Adopt Realistic Hybrid Approach

However, challenges remain. The private sector in J&K is still underdeveloped, with limited industrial presence due to security concerns and bureaucratic hurdles. There is also a deep-rooted preference for government jobs, making the transition to private employment slow. Without strong investment incentives, policy stability, and skill development, the private sector alone may not resolve J&K’s unemployment crisis.
For sustainable employment, a hybrid approach is needed, balancing public sector recruitment with private sector expansion, along with long-term policies that encourage investment, innovation, and entrepreneurship in J&K.

Way Forward

The J&K Budget 2025-26 places significant emphasis on private sector growth and entrepreneurship as key solutions to the region’s persistent unemployment crisis. While these strategies have the potential to generate sustainable employment, their success depends on factors such as investment climate, infrastructure, ease of doing business, and security. The budget shall necessarily promote industrial expansion, tourism growth, and self-employment and start-up through targeted investments and policy interventions adopting a broad based approach.

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