Hammad Bukhari
August 5, 2019, marked a significant turning point in the political landscape of Jammu Kashmir. Although the BJP-led central government celebrated the abrogation of constitutional safeguards under 370 as a step toward greater integration and economic prosperity for the region, the consequences are more complicated.
In April last year, data from the Centre for Monitoring Indian Economy (CMIE) showed that J&K had among the highest unemployment rates in India at 23.1 percent. This is also reflected in the disproportionately large number of applications for the few government posts when these are advertised.
In 2022, 97,793 candidates appeared for the examination conducted by the J&K Service Selection Board (JKSSB) for 1,200 sub-inspector posts, which was subsequently annulled. In 2017, J&K’s unemployment rate stood at 5.4%; in 2018-19, it was 5.1%, but by 2019-20, it had reached 6.7%. These figures were presented by the government in the Lok Sabha.
According to a report by CMIE, J-K’s unemployment rate for March 2022 was 25%, nearly three times the national average of 7.6% for the same month.
The changes since the abrogation of Article 370 have not only failed to meet people’s aspirations but also highlighted the failure of neoliberal economic policies that increasingly define J-K’s economic trajectory since it was downgraded to two Union Territories.
Despite more than 300,000 vacant government positions across education, law enforcement, and public administration, unemployment rates remain high, and many qualified candidates face uncertainty.
JKSSRB Chairperson Indu Kanwal Chib outlined the current recruitment status: “As of today, 22,624 selections have been finalized since 2019, and 874 are under process.”
Examinations for 4,921 posts are scheduled for the next fortnight, and 3,299 posts are under process, awaiting clarifications or legal resolutions.
The vacant posts cover major departments like Home (1,336 posts), Health & Medical Education (415), Jal Shakti (314), and Power Development (292). She told the Chief Secretary that since 2019, the Board has finalized 22,624 selections, is processing 874 more, and has exams for 4,921 posts scheduled for the coming weeks. Additionally, 3,299 posts are ready for advertisement, pending clarifications or legal resolutions.
Bilal Ahmad, a qualified doctor awaiting recruitment in the Health Department, expressed discontent, “The vacancies have been there for years, and despite the tall claims, the recruitment process is painfully slow. We are ready to serve, but these delays are discouraging.”
Shazia Khan, an education graduate, also mourned the non-transparent recruitment process, “I have applied to various teaching positions, but the delays leave me idle while similar peers in other states get jobs.”
Imran Ahmad, another job applicant, criticized the stagnation in the recruitment processes, “Vacancies are advertised, but the process rarely moves forward. This uncertainty is demoralizing.”
The latest Periodic Labour Force Survey (PLFS) shows that 32% of youth in the 15-29 age group are unemployed in urban areas of J&K, making it the highest unemployment rate in India for this demographic.
The data further highlights a concerning gender gap in the region’s job market. With a staggering 53.6% unemployment rate among women, J&K tops the country in female joblessness, which remains an urgent challenge for policymakers.
The Directorate of Employment (DoE) in J&K reports that in the first quarter of 2024, 3.52 lakh youth were officially registered as unemployed, with 1.09 lakh of them holding graduate or postgraduate degrees. This group represents 31% of the total unemployed youth, underscoring the growing disparity between education levels and available job opportunities in the region.
Impact on Local Economies
Historically, the economy of J-K has been shaped by its constitutional safeguards under Article 370. While the region was no stranger to India’s economic challenges, the special provisions did grant it a degree of autonomy in planning its economy and governance.
Local industries, especially agriculture, handicrafts, and tourism, were encouraged to grow under a protected economy that shielded them from the full brunt of market forces.
However, 2019 has drastically changed the region’s economic landscape, with significant implications for employment.
Structural challenges have worsened this crisis. While the primary sector contributes roughly 16 per cent to J-K’s GSDP, employment in this sector stands at approximately 34%, revealing a mismatch between sectoral contributions and employment generation.
Other causes of unemployment include a lack of a skilled workforce. Despite a high literacy rate, J&K still faces an enormous gap between the skills required by corporate and manufacturing conglomerates and the skill set offered by the workforce. Jammu Kashmir has one of the youngest populations in India, with more than 54% of its population under the age of 25; however, its formally skilled workforce stands at a shockingly low rate of 2%.
The industrial scenario in the region has been dismal. The core manufacturing ecosystem has struggled to sustain itself, limiting employment opportunities.
J-K also lacks basic infrastructure facilities like roads, sewage, and uninterrupted power supply, making it difficult for global investments to view the region as a viable investment option, further feeding unemployment.
The immediate aftermath of the abrogation of special status has led to extreme uncertainty. The government has promised large-scale job creation through infrastructural projects and industrialization, but these promises have not been fulfilled in any meaningful way. Local businesses, burdened by economic stagnation and increased competition from global capitalism, face significant challenges.
The crisis deepened with the central government’s approach to industrialization, which has failed to benefit local industries, especially small and medium enterprises, which are unable to compete with large corporations. These corporations are largely headquartered outside the region and fail to inject significant employment while perpetuating the region’s economic dependence on external capital.
Economy of J-K and Neoliberalism
The new economic model imposed on Jammu Kashmir reflects the broader neoliberal agenda that has shaped India’s economic policies since the 1990s.
Privatization, deregulation, and free-market policies operate under the assumption that markets, if left to their own devices, will create jobs and wealth for all. However, the stark reality in J-K contradicts this assumption.
The influx of capital from outside the region has enriched a small elite but has not led to widespread prosperity. Instead, it has resulted in the erosion of traditional industries and the displacement of the local workforce.
The failure of large infrastructure projects to generate meaningful employment reflects the hollow promises made to the people of J-K.
Moreover, the increased reliance on outside capital has made the region more vulnerable to global economic shifts, as capital flows are often driven by short-term gains rather than long-term stability.
Causes of Unemployment
Several factors have contributed to rising unemployment in the Valley post-abrogation. First, the destruction of local businesses has been catastrophic. The region’s traditional sectors—agriculture, handicrafts, and tourism—are at risk of losing their ground to global capital, which displaces local workers in favor of cheaper outsourced labor.
The central government’s failure to invest in skill development or formulate sustainable economic policies has left the local workforce ill-prepared for the demands of the modern economy. The promise of industrialization has been met with a lack of infrastructure and investment in human capital, leading to rising unemployment, especially among the youth.
Second, political instability and security concerns have worsened the situation. The 2019 curfew, movement restrictions, frequent shutdowns, and a general sense of insecurity have driven away both domestic and foreign investment, further contributing to the unemployment crisis. This instability has also prevented locals from acquiring the necessary skills to compete in future job markets, leaving them unemployable.
Solutions
To tackle the growing unemployment crisis in J-K, a fundamental shift in economic policy is needed. Instead of relying on neoliberal solutions that prioritize global capital, a more localized, people-centric approach is required. This should begin with reinvesting in traditional industries like agriculture, handicrafts, and tourism, with a focus on sustainability and local employment.
The establishment of public sector enterprises that generate long-term, stable jobs would help reintegrate J-K’s economy into the national market without sacrificing local autonomy.
While the current regime has introduced schemes like the NCSS, there is no provision to prioritize the local population in these plans. Industrial development should not be detached from the local population; they must benefit from the development taking place in their region.
Tourism has already generated significant employment, particularly in the Valley, but more outreach efforts should target the youth, particularly in sector-specific programs.
Additionally, the government must focus on high-yielding traditional sectors like horticulture, handloom, handicrafts, and sericulture to create more employment opportunities.
These sectors can be elevated to elite arts, akin to how they are treated in larger cities outside J-K.
Although J-K has the highest unemployment rate, it has one of the lowest migration rates at 22.1%, according to ILO data. This suggests that the people of J&K have a strong attachment to their region and expect better opportunities from their elected leaders.
Therefore, enhancing job placement and vocational education is crucial. The government needs to provide students with access to the latest technology and infrastructure to enrich their educational experience.
The current output from educational institutions does not match market demands. The market requires highly trained youth in areas like big data analytics, encryption, cybersecurity, digital platforms, e-commerce, machine learning, cloud computing, environmental management technologies, etc.
Ultimately, the most effective way to create jobs in J-K is to revive Article 370 and restore autonomy to the region.
Only then will J-K be able to reinvest in itself and create the kind of economic opportunities that can sustainably address its unemployment crisis.