Srinagar: Tourism boom and fast-track recruitment drives have led to a sharp dip in the unemployment rate in Jammu and Kashmir.
Centre for Monitoring Indian Economy (CMIE) figures reveal that the unemployment rate in Jammu and Kashmir for February has dropped to 13.2 percent. It is the lowest unemployment rate in the last eight months.
The union territory had reported an unemployment rate of 15 percent in January. In October and November last year, Jammu and Kashmir’s unemployment rate had hit 22.2 and 21.2 percent, respectively.
Currently, Jammu and Kashmir’s unemployment rate is much lower than many states including Rajasthan (32.3%), Haryana (31.0), and Jharkhand (15.0%). India’s national unemployment rate is 7.2 percent. The national urban employment rate is 7.9.%. In rural India, it is 6.9 %.
The unemployment rate is calculated by CMIE using its Consumer Pyramids Household Survey machinery.
Officials cited the boom in the tourism sector and the government’s recruitment drives as the main reason for the drop in the unemployment rate.
“Post second COVID-19 wave, Jammu and Kashmir showed signs of economic recovery. Economic activities continued during the third wave of the pandemic,” said an official.
He said the government simultaneously held employment drives across the union territory. “More employment drives are scheduled to be held in coming months. Besides, the government is equally providing incentives to the educated youth to start their own venture,” the official said.
Jammu and Kashmir is currently witnessing a boom in the tourism sector, which is one of the main constituents of UT’s high GDP. The valley hotels are completely booked till May, while the tour operators are witnessing enhanced bookings for upcoming months.
“Houseboats, hotels, and travel agencies re-employed their staff which they had laid off during Covid 19 surge,” Umar Ahmad, a travel agent said.
Department of Labour and Employment figures reveal that as many as 770319 qualified youth graduates and postgraduates are registered with employment exchanges in the valley.