Jammu and Kashmir's urban youth unemployment rate nearly double than national average

Latest labour data shows that 32 per cent of urban youth aged between 15 to 29 were unemployed in the July–September 2024 quarter.

Srinagar: Jammu and Kashmir has recorded the highest urban youth unemployment rate in India, with nearly one in three young people in towns and cities out of work, placing it far above the national average, according to the latest government labour data.

The Periodic Labour Force Survey (PLFS) of the Ministry of Statistics and Programme Implementation (MoSPI) shows that 32 per cent of urban youth aged 15–29 in J&K were unemployed in the July–September 2024 quarter.

At the all-India level, urban youth unemployment during the same period was in the mid-teens, making J&K’s rate almost double the national average.

The situation has worsened over the past year. Urban youth unemployment in the Union Territory has risen from the corresponding quarter of 2023, even as national indicators showed relative stability, highlighting a sharper regional stress.

Women bear the brunt of the crisis. Labour surveys consistently show that J&K has one of the highest female unemployment rates in the country, especially among young women in urban areas. Women’s unemployment in the Union Territory is more than twice that of men, a gap far wider than the national average.

Rural J&K reports lower unemployment rates than urban areas, but employment there remains heavily concentrated in agriculture and self-employment, offering limited income security.

Nationally, agriculture’s share in employment has been gradually declining, but in J&K it continues to absorb a disproportionately large share of the workforce.

Education has failed to insulate young people from joblessness. While unemployment among graduates is a nationwide concern, J&K stands out for the sheer scale of educated unemployment. Government data shows that over three lakh educated youth have registered as unemployed on official portals, one of the highest such figures relative to population size.
The underlying reason lies in the structure of the economy.

Manufacturing and organised private-sector employment remains weak, providing far fewer jobs than the national average. Across India, organised private employment accounts for a much larger share of urban jobs; in J&K, its footprint is minimal, pushing young workers into informal, low-productivity activities.

PLFS data shows that more than four-fifths of workers in J&K are in the informal sector, compared to around 90% nationally, but with far fewer industrial and service-sector opportunities to offset informal employment. Self-employment dominates, while regular salaried jobs remain scarce.
Construction and agriculture are among the largest employers, reflecting an economy driven more by necessity than opportunity. By contrast, at the national level, services and manufacturing account for a significantly higher share of employment.

The government remains the most reliable source of stable jobs. Public sector employment runs into several lakh positions, making government recruitment the primary aspiration for young job seekers in the Union Territory—far more so than in most other states.
Economists say the comparison with national trends is stark: while India’s labour market has struggled to create enough quality jobs, J&K faces a deeper structural deficit, marked by exceptionally high youth unemployment, weak private-sector absorption and limited industrial diversification.

The latest PLFS data underscores that without sustained private investment and job creation beyond government hiring and agriculture, J&K's demographic advantage risks turning into a prolonged employment crisis.