Unemployment rate drops to 10.6% in J&K: Companies rehire, reinstate employees as business activity picks up

Srinagar: Three months ago, 34-year-old Mudasir Ahmad had to return home in Baramulla after he was given a pink slip by his employer.

For the last three years, Mudasir has changed three jobs because of the layoffs and pink slips. 

Thanks to the improvement in the situation, he again got a placement in a hotel in Srinagar as tourists started making a beeline to Kashmir.

“Tourism industry became the first causality of any uncertainty. Those associated with the sector have witnessed repeated lay-offs,” he said.

The same is the case with Mudasir’s other colleagues who are being re-instated.

Companies, industries, and business outlets have again started hiring people as the government announced an unlock after witnessing improvement in the COVID situation.

Many Kashmiri professionals who have been working in various firms outside the valley too are being called by their offices to join.

 “I had to return to my home as Bangalore was drastically hit due to the COVID. Now after more than two months, my organization called me to join back at the office,” said Feroz Ahmad Wani, who works at an IT company in Karnataka.

With Unlock 2.0, Jammu and Kashmir has witnessed a decline in the unemployment rate that has surged to 14 percent in March.

Jammu and Kashmir, as per the Centre for Monitoring Indian Economy (CMIE) has an unemployment rate of 10.6 against a national average of 7.9 percent.

Sikkim with 0.0 percent has recorded the lowest unemployment rate, while Puducherry at 47.1 percent has the highest unemployment rate in India.

Figures suggest that more than 95,000 youth are registered with different employment exchanges in Jammu and Kashmir. The figure includes a huge chunk of qualified youth who have passed their post-graduation.

Officials said that the unemployment rate is expected to further come down as every sector was heading towards normalcy in Jammu and Kashmir.

 “Government has started the recruitment process at a massive scale to overcome the unemployment in the union territory. Attracting investment will help in setting up big industries in J&K. The unemployment rate will come down further in coming months. Multiple District Youth Centers (DYCs) will be set up in Jammu and Kashmir to help unemployed youth,” said an official.