Why in news:

• The Union Territory of Jammu and Kashmir has an unemployment rate of 22.2 percent for the month of October which is the highest among all states and union territories of the country.

Key Points:

• According to the Centre for Monitoring Indian Economy (CMIE) figures, Jammu and Kashmir has a 22.2 percent unemployment rate, which is much higher than the national level unemployment rate of 7.1 percent recorded across India.
• The higher unemployment rate in Jammu and Kashmir is a cause of concern as there seems to be no improvement in the job scenario in the Union Territory.
• In comparison to September, the unemployment rate has further increased. For September, CMIE has pegged the unemployment rate at 21.6 percent which went up to 22.2 percent.
• The unemployment rates are produced by CMIE using its Consumer Pyramids Household Survey machinery.
• CMIE has pegged India’s unemployment rate at 7.1 percent which means Jammu and Kashmir has much higher unemployment rate than the national average.
• The rising unemployment rate in Jammu and Kashmir continues to be a lingering problem for the youth who are forced to run after government jobs in absence of a strong private sector in the UT.
• Though the government claims that outside investments worth Rs 50,000 crore will come to UT, it is yet to have any impact on ground.
• Besides these official figures, there are other data sources which indicate the severity of unemployment in Jammu and Kashmir.
• For example, the employment registration carried out by the Directorate of Employment last year witnessed three lakh registrations by post graduates and PhD degree holders.
• Last year, J&K Service Selection Board advertisement for 8000 class IV posts saw a whopping 5.4 lakh aspirants applying.
• Official figures suggested that the J&K administration has advertised around 10,000 jobs, of which 8,575 were Class IV posts — ever since the new domicile laws were introduced in May 2020, which will also allow a section of non-locals to apply.
• According to the Ministry of Statistics and Programme Implementation (MOSPI), the combined unemployment rate of J&K and Ladakh hit the highest 17.8 percent in October-December of 2020; against the national average was 7.11 percent.
• The government departments remain the highest employers in the UT because of the lack of big industries or corporates.
• However, Lieutenant Governor of the UT has said he was expecting creation of five lakh jobs as the UT is all set to get Rs 25,000-30,000 crore of private investment.

CMIE (Centre for Monitoring Indian Economy)

• CMIE is a leading business information company.
• It was established in 1976, primarily as an independent think tank.
• CMIE produces economic and business databases and develops specialised analytical tools to deliver these to its customers for decision making and for research. It analyses the data to decipher trends in the economy.
• CMIE is a privately owned and professionally managed company head-quartered at Mumbai.