CHAPTER - I

INTORDUCTION

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1.1 Introduction of Unemployment

Unemployment is a key measure of economic health. It is a major factor in determining

how healthy an economy is; if the economy maximized efficiency, everyone would be

employed at some wage. An individual unemployed is both unproductive and a drain on

society’s resources. However, while unemployment seems a basic statistic, the number

without jobs divided by those with jobs – the issue is anything but. Unemployment is a

powerful statistic that shapes government policy and personal decisions. The government

keeps a close eye on the unemployment rate. Not only does unemployment indicate that

the economy isn’t operating at peak efficiency, but politicians have noticed that high

unemployment correlates with losing elections. The Federal Reserve believes that

unemployment below a certain threshold they refer to as the natural rate of unemployment

leads to inflation, reflecting an observation by the economist A. W. Philips correlating

unemployment to inflation during the 1960s.

The Bureau of Labor Statistics is the US agency that monitors and reports on

unemployment and other labor statistics. In 2006, the average unemployment rate was

4.6%. This number only includes a subset of the total US population: the currently

unemployed people who are willing and able to work. This subset of the population

excludes children and infants, people in the prison system, and people who choose, for

various reasons, not to work. Choosing to measure unemployment this way assumes that a

classical free market perspective works. That is, people making free choices will inevitably

1
lead to the best outcome; everyone who wants a job will receive a job. In that sense, it is

pointless to measure people who are unable or unwilling to work: if they wanted a job, they

could get a job, and they evidently have a good reason not to work. This perspective

envisions unemployment simply as the time spent between jobs; assuming people keep

looking for a job, they will find one.

John Maynard Keynes criticized this viewpoint as misleading. He pointed out that the

people who drove demand for goods and services are the same people participating in the

labor market. Unemployment means less income, which in turn means less demand; less

demand causes the demand curve in the labor market to change, creating a feedback

cycle.[1]

Employment has always been regarded as one of the important social issues. The

fundamental reason that makes it so important is that it does not only affect the economic

development of society, but also the stability of the society. Employment determines how

a society is like, how it is going to develop. It also affects how individuals define

themselves. Imagine if enormous numbers of people are jobless, the consequences must be

drastically catastrophic. Although this might sound like “groundless” fear, it might

eventually become reality if we do not address it in time.

As a matter of fact, most of the countries are suffering from the slower-than-projected

economic recovery and rise in unemployment. With reference to the Global Employment

Trends 2014 prepared by the International Labour Organization (ILO), there are about 202

million people who were unemployed in 2013 around the world after the 2008 global

financial crisis. Among the unemployed, about 73 million young people were unemployed.

To prevent the “groundless” fear becoming the reality, as delegates from global

2
community, we must find a viable strategy to strengthen the global economy and alleviate

the problem.

Unemployment comes from different causes. In general can be manifested into five types:

1. Frictional Unemployment

Frictional unemployment refers to the period between job transitions. People are regarded

as unemployed while they are attempting to find a new job.

2. Cyclical Unemployment

Cyclical Unemployment occurs during recessions of economic cycle. As a matter of fact,

it is not surprising that during economic recessions, the demand for goods and services

falls. Employers may respond by reducing the labours. When supply of labours is greater

than the demand, unemployment results. However, it is believed that such unemployment

will disappear the economy recovers.

3. Voluntary Unemployment

Under the economists’ view, people tend to participate in workforce. Unemployment is

usually regarded as involuntary. However, there are scenarios that people choose not to

work. Voluntary unemployment describes such phenomenon. It is functionally another

type of frictional unemployment. It happens when people are not able to find employment

that matches their expectations.

4. Structural Unemployment

Structural unemployment occurs when the skills, experience, and education of workers do

not match job openings (Goodwin 27). Structural unemployment is a form of frictional

unemployment, but it usually lasts longer. It may encourage voluntary unemployment.

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5. Institutional Unemployment

Institutional unemployment explains how interference in the labor market can create

unemployment. The government is the most common instigator of institutional

unemployment. Governments can set taxes, create price floors or price ceilings, and

indirectly support other factors of institutional unemployment such as labor unions.[2]

Global Unemployment

Global unemployment levels and rates are expected to remain high in the short term, as the

global labour force continues to grow. In particular, the global unemployment rate is

expected to rise modestly in 2017, to 5.8 per cent (from 5.7 per cent in 2016) representing

3.4 million more unemployed people globally (bringing total unemployment to just over

201 million in 2017). And while the global unemployment rate is expected to hold

relatively steady in 2018, the pace of labour force growth (i.e. those in search of

employment) will outstrip job creation, resulting in an additional 2.7 million unemployed

people globally.

The increase in unemployment levels and rates in 2017 will be driven by deteriorating

labour market conditions in emerging countries (as the impacts of several deep recessions

in 2016 continue to affect labour markets in 2017). In fact, the number of unemployed

people in emerging countries is expected to increase by approximately 3.6 million between

2016 and 2017 (during which time the unemployment rate in emerging countries is

expected to climb to 5.7 per cent, compared with 5.6 per cent in 2016). Of notable concern

are developments in Latin America and the Caribbean, where the unemployment rate is

expected to rise by 0.3 percentage points in 2017, to reach 8.4 per cent – largely driven by

rising unemployment in Brazil.

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In contrast, unemployment is expected to fall in 2017 in developed countries (by 670,000),

bringing the rate down to 6.2 per cent (from 6.3 per cent in 2016). In Europe, notably

Northern, Southern and Western Europe, unemployment levels and rates are both expected

to continue to fall, but the pace of improvement will slow, and there are signs that structural

unemployment is worsening. The same applies to Canada and the United States. For

example, in both Europe and Northern America, long-term unemployment remains

elevated in comparison to pre-crisis levels and, in the case of Europe, it increased recently,

despite the reductions in the unemployment rate. In fact, in the EU-28, the share of

unemployed people who had been looking for a job for 12 months or longer reached 47.8

per cent in the second quarter of 2016, up from 44.5 per cent for the same quarter of 2012.

Furthermore, in the second quarter of 2016, more than two-thirds of this group, a total of 6

million people had been unemployed for over two years.[3]

The problems of youth unemployment globally mentioned below briefly.

 Weak financial systems in both developed and developing economies: In the

post-financial crisis era, banks have been under increased pressure to build up

balance sheets and ration credit, which has cut off access to finance for small-and-

medium sized enterprises. Also, the ultra-low interest rate policies pursued in the

United States, European Union and Japan have largely channeled investment into

asset markets (stocks and real estate) at the expense of investment in job-creating

activities in the real economy.

 Missing investment in skills and education development to meet the needs of

the labor market. Skill mismatch is one of the largest challenges facing young

people in labor markets across the world, and this is largely a product of a deficient

5
 education policy strategy or a lack of opportunities to acquire new skills. For

example, high youth unemployment in Spain has persisted for many years, largely

because of a concentration of skill distribution in the construction industry that has

prevented young people seeking employment in other sectors in the years following

the global financial crisis, in which the construction sector was hit particularly hard.

 Fiscal consolidation in advanced economies: Developed nations have cut back

on government expenditure in order to reduce their budget deficits and preserve

sovereign bond ratings. Spending cutbacks have also reduced the number of people

employed by government agencies, decreased employment generating

infrastructure projects and reduced government spending on social services, such

as education.

 Lack of reform that inhibits economic growth in the developing world: Despite

having high growth potential, many economies in the developed world are inhibited

by poor infrastructure, lack of investment in education and excessive bureaucracy.

For example, countries in North Africa and the Middle East - the two areas with the

highest rates of youth unemployment - have some of the worst rankings in the

World Bank’s Ease of Doing Business Rankings. These factors, and the lack of

appropriate reforms and government efforts to remedy them, limit both private

investment and job creation.

The consequences of youth unemployment do vary. First, it pressures government finances

by both raising the necessary levels of social welfare spending and reducing the number of

taxpaying workers in the economy. Second, unemployed youth are denied the opportunity

to learn new skills and increase their employability. Thirdly, extended periods of

6
unemployment can discourage citizens from applying for jobs and can, in some cases,

contribute to crime and anti-social behaviour. Finally, youth unemployment can contribute

to social problems, since studies show that the burden of youth unemployment often falls

excessively on marginalized ethnic groups.[4]

Educated Unemployed in India

India is poised for reaping demographic dividend and leapfrog to a higher level of income

employment situation utilizing the relatively larger share of youth or working age persons

in total population. However, the outcome depends on the contribution of youth to national

product. India at present suffers from remarkably high educated unemployment and

questions are also raised about the employability of the youth because of their inadequate

education, training, and market ready skill. Huge youth unemployment, especially

educated unemployment is the surest way to social tension, unrest, and unlawful activities

turning the demographic dividend into a demographic nightmare. We are more concerned

about joblessness among educated youth, those with a substantial number of years of

formal education.

If we consider youth with at least high school level of education (passed secondary

examination or above) as educated a bleak picture emerges. Unemployment is much more

pronounced among these groups. While the average unemployment rate among youth is

6.8 per cent, that among school pass outs is 12.1 per cent. More than 11 per cent of Indian

graduates and post-graduates are jobless. Close to two-third of school pass-outs are self-

employed while close to half of graduates and postgraduates are casual laborers. In terms

of relative size too, educated persons are formidable among the unemployed. While less

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than half of our working people are school pass-outs, close to two-third of all unemployed

youth have secondary or higher level of education.

Thus the employment situation of educated youth in India is much worse than the others.

The situation is poorer for youth with certain level of technical training. Though such

technical training qualifications are quite sought after in the country and are supposed to

provide market ready applied skills to the candidates, unemployment among technical

degree holders is close to 13 per cent while that among diploma holders is about 26 per

cent. As a result, contrary to expectations, more than one-fourth of youth with technical

training are without any gainful employment. We can also classify youth according to their

skill level, a combination of their general, vocational, and technical education. On an

aggregate about one-fourth of skilled youth are without jobs. Incidence of skilled

unemployment is higher among females compared to males and in rural areas relative to

urban areas. As against this, unemployment among unskilled youth – those with less than

10 years of schooling or without any vocational/technical training is just about 6 per cent.

It is thus evident that unemployment among educated youth is a serious problem in India.

This has a regional setting too with states like Kerala, Orissa, Jharkhand, Assam, Bengal

and Jammu & Kashmir consistently having higher levels of educated youth unemployment

compared to national average. On the other hand, unemployment among educated youth is

relatively less than national average in the states of Gujarat, Madhya Pradesh, Maharashtra,

Chhattisgarh, and Karnataka.[5]

Causes of Unemployment in India

Important causes of unemployment in India may be summarized as follows-

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• Jobless Growth. Economic growth is usually expected to generate employment.

However, in India, most of the economic growth has been jobless. For 30 years

from 1950-51 to 1980-81, GDP growth rate was as low as 3.6 per cent per annum.

At this rate of economic growth, many jobs could not be created. GDP growth

accelerated to 5.6 per cent per annum in the 1980s and stayed at this level in the

1990s. At this higher rate of GDP growth, one would normally expect that many

new employment opportunities would be forthcoming. But this was not to be.

During last two decades, there was a steep decline in employment elasticity in

almost all the major sectors. In the manufacturing sector, over the past two decades,

employment elasticity declined from 0.59 to 0.33. Since 2000-01, under the

influence of neo-liberal approach, the emphasis has continued to increase the

efficiency. Thus, more and more labour displacing production techniques have been

favored and as a result growth has been jobless.

• Inappropriate Education System. The education system in India is defective. It

is, in fact, the same education system which Macaulay had introduced in this

country during the colonial period. According to Gunnar Myrdal, India's education

policy does not aim at the development of human resources. It merely produces

clerks and lower cadre executives for the Government and private concerns. Myrdal

considers all those who receive merely this kind of education not only as

inadequately educated but also wrongly educated. Any education system which

fails to develop human resources properly, would need drastic changes.

• Increase in Labour Force. Since Independence, death rate has rapidly declined

and the country has entered into the second stage of demographic transition. In

9
 India, demographic factor has operated in a direct manner. Over the years, mortality

rate has declined rapidly without a corresponding fall in birth rate and the country

has, thus, registered an unprecedented population growth. This was naturally

followed by an equally large expansion in labour force. In Indian context, social

factors affecting labour supply are also as much important as demographic factors.

Since Independence, education among women has changed their attitude towards

employment. Many of them now compete with men for jobs in the labour market.

The economy has, however, failed to respond to these challenges and the net result

is continuous increase in unemployment backlog. In rural areas, unemployment has

increased mainly in disguised form, in urban areas it is open and visible.

• Neo-liberal Economic Policy. With the introduction of neo-liberal structural

reforms in India, income inequalities have increased. The estimates of consumption

expenditure provided in World Development Report, 2006 show that Gini index of

distribution of consumption rose from 29.7 in 1994 to 33.0 in 1999-2000. This

implies that income inequalities have increased during the decade of economic

reforms. Growing income inequalities generally lead to demand constraints and

unemployment. In this period, due to liberalization policy, all the consumer goods

of elitist consumption were available and the rich eager to buy these things raised

their consumption expenditure and created substantial effective demand. As a

result, demand constraints, which in turn arrested the growth of output, cut down

demand for labour. Hence, neo-liberal economic policy of the government

aggravated the unemployment situation.

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• Inappropriate Technology. In India, while capital is a scarce factor, labour is

available in abundant quantity. Under these circumstances, the country should have

labour-intensive techniques of production. However, not only in industries, but also

in agriculture, producers are increasingly substituting capital for labour. In western

countries, where capital is in abundant supply, use of automatic machines is both

rational and justified, while in India, on account of abundance of labour, this policy

results in large unemployment. According to W.A. Lewis, "In all those countries

where unskilled labour is available in excess supply, great care is needed in

exercising choice in respect of technique because monetary wage fails to reflect the

real cost of labour. Lewis asserts that investment in such a situation in capital

equipment’s may be profitable to individual capitalists, but it is certainly not

beneficial to the society, because it increases unemployment and not production".

• Underdevelopment. It is stressing that Indian economy, by and large, continues to

be in a state of underdevelopment. The volume of economic activities, determined

largely by agriculture, is low. The nonagricultural sector, in particular the modern

industrial sector, which could provide increasing avenues of employment, is

growing at a very slow pace. This unfortunate situation of slow growth

characterized the Indian economy even before independence. During the British

period, the flourishing indigenous small-scale and cottage industries, were

destroyed. Certain other policies also prevented the emergence of new industries.

After the attainment of independence, there was a favorable atmosphere for rapid

industrialization but actual performance in this sector remained far short of the

plan-targets and needs.

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• The slow capital formation over a long period also inhabited the growth-potential

of activities in agricultural and industrial sector. Inadequacy of irrigation facilities,

shortage of fertilizers and power, unsatisfactory transport facilities etc., all caused

by the slow growth of capital-goods sector, have adversely affected the expansion

rate of work opportunities in agriculture. Similarly, the development of industries

has also been hindered by the non-availability of machines, power, transport,

essential raw materials, etc.

• Inadequate Employment Planning. Employment planning in India has not

contributed adequately to the solution of this problem. Employment till recently did

not form an integral part of planning strategy in the sense that this objective was

never quantified as a time bound programme. No consideration was given in the

plans for devising an appropriate wage-rate policy as an instrument of employment

expansion or promotion of labour intensive techniques in a big way. Further, little

has been done to utilize the labour surplus in villages. There is little that can be

documented as a consistent and comprehensive programme of utilising labour or

tackling the problem of unemployment.

• Overall Inadequacy of Manning. It has added the weak manpower planning i.e.,

balancing of manpower needs and supplies in the various branches of production,

different regions of country and various skills. In some sectors of the economy,

there is more than we need, while in others, there is less than required. So is the

case with many regions and various skills. These imbalances have arisen in the

sphere of educated and trained personnel. Even in those spheres, where large

resources of the community were at stake, not much was done.

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 • Rapid Population Growth. The rapid growth of population, in particular since

1951, has adversely affected the employment situation largely in two ways. In the

first place, it has directly affected it by making large additions to labour force. Rate

of job-expansion could never have been as high as population growth. To that

extent, therefore, the population factor has contributed to the worsening of

unemployment situation. Increase in labour-force has almost always been higher

than the rate of population-growth. This means that population is becoming

younger, requiring the creation of new job-opportunities at an increasing rate.

Employment-expansion has not been sufficient to match the growth of labour-

force, and to reduce the backlog of unemployment. The result has been a worsening

unemployment situation. The second consequence of rapid population growth has

been to worsen indirectly the unemployment situation by reducing the resources for

capital formation. Any rise in population implies large additional expenditure on

their rearing up, maintenance, education, etc. As a result, more resources get used

in private consumption, (e.g., food, clothing, etc.) and in public consumption (e.g.,

drinking water, electricity medical and education facilities, etc). It has reduced the

proportion of income to savings and investment. Population-growth has, thus,

created hurdles in the way of fast growth of economy and job opportunities.[6]

In India, not only is the rate of unemployment higher with an increase in levels of

education, but also, when it comes to the issue of gender bias, it becomes obvious that

women face much higher rates of unemployment as against their male counterparts across

all the educational categories. In fact, a large number of technically-educated people across

all the three categories (technically educated in agriculture or engineering or technology or

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medicine etc., diploma or certificate below graduate level and diploma or certificate above

graduate level) are unemployed. Thus, besides promoting technical education, the

government needs to focus more on the creation of productive jobs and demand for workers

since all industries, in view of the competitive global market environment, try to reduce

the aggregate cost of production and there is no additional scope for the creation of

sufficient jobs to engage all the technically-educated people. As the number of technically-

educated people is likely to increase in the coming years due to the special initiative of the

present Central government of India, creation of adequate job opportunities to engage these

people should expand at a more rapid rate. Otherwise, it could lead to a great loss of human

capital investment.[7]

Effects

In India, this formidable problem will go to an alarming stage unless some positive

measures are immediately adopted. The vast mass of unemployed people is a source of

great danger to society and the state.

1. In despair, these young men may run wild and take the law into their own hand. They

may engage in many undesirable activities. Criminal activities are on the rise.

2. Unemployment aggravates social unrest and economic imbalance of the country.

3. The standard of living of people remains low because of unemployment. The sharp

increase in the poverty rate and low standard of public health are also the ill effects

of the problem.

4. Poor people, who are unemployed, finds it difficult to manage the rising cost of basic

necessities.

5. Unemployment is the leading cause for depression among youth. [8]

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 1.1 India: Unemployment rate

INDIA UNEMPLOYMENT RATE

4.5

3.5

2.5

1.5

0.5

0
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Source: The World Bank

The World Bank provides data for India from 1991 to 2017. The average value for India

during that period was 3.93 percent with a minimum of 3.5 percent in 2014 and a maximum

of 4.4 percent in 1997.

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1.2 Unemployment in Jammu and Kashmir

Jammu and Kashmir is the state known as the model of heaven on earth and is very popular

all over the world. The state is bestowed with attractiveness of mountains landscape,

springs and rivers, fresh water and distinct cultural beliefs. Jammu and Kashmir is the only

state with a majority of Muslim population. However, the trend in the development of

Jammu and Kashmir is unfortunately not encouraging. The slow growth of the state can be

attributed to various factors like lack of good government, poor investment, Indo-Pak

relations, political confusion, poor industrial structure, armed insurgency and low

production etc. The most powerful devil in this state is unemployment. During the planning

period unemployment in absolute and the terms has increased. Unemployment occurs when

people are without work and actively seeking work. Unemployment is characterized by

disguised unemployment and chronic under-unemployment. The survey and good realities

suggest that the menace of unemployment among the educated youth in Jammu and

Kashmir has touched new heights with lakhs of unemployed candidates applying for a

thousand posts advertised by different employment agencies. The future of Kashmiri

youths is continuously ruining the problem of unemployment. There are more frustrations

of the educated unemployed, who face the task of competing with thousands of other

people.[9]

The state Jammu and Kashmir presents a peculiar geographical and socio-economic

settings. It occupies an important position in the Indian sub-continent by virtue of its high

altitude, rough territory and rugged. The Jammu and Kashmir is highly dependent on

outside supplies of not only material but also men and the dependency in materials easily

understandable. The paradox of unemployment and inward migratory labour force is

16
serious matter of concern. It employs more than 4.5 lakh skilled and unskilled labours, who

migrate inwards from different parts of the country. The state economy unemployment is

being claimed as one of the sensitive area. The problem of unemployment in the state of

Jammu and Kashmir has reached alarming dimensions which is highly increasing every

passing year with thousands of educated and uneducated youth getting added to the list of

unemployment largely due to economic distress and mismatch. The educated youth in the

rural areas are the worst victims of unemployment. Though a number of Rural

Development schemes have been implemented for the overall development of hilly

regions, backward areas and tribal regions. No special schemes were exclusively proposed

for the poor educated youth in rural areas and life is very tough for the rural unemployed.

The lack of entrepreneurship culture in rural areas, defective educational system and the

mismatch in skills which the youth of rural India face.[10]

One of the leading reasons behind soaring unemployment rate in the state is the weak

performance of public sector. The public sector of the state of Jammu and Kashmir is in

quite unhealthy shape. Sometimes, out of the leading seventh state corporations in Jammu

and Kashmir, seven were showing profit, while ten were running on total losses of Rs

1,876.72 crore according to the latest official figures. Basically the PSUs of the state have

properties worth billions of rupees at prime locations but still they are penniless and are

not able to harness their rich potential so as to provide employment opportunities to the

youth. In Kashmir valley there is a lack of quality vocational courses in the educational

institutions and is also adding to the unemployment problem of Kashmir. There is a lack

of proper vocational courses in the top level universities of Kashmir. The infrastructure

17
related to vocational courses in the educational institutions of Kashmir valley is also

unimpressive.[11]

Kashmir has facing a situation of uncertainly right from 1947. In last 20 years the

educational atmosphere has become poorer. Reason of uncertainty is one of the major

reason behind unemployment. Government has too slowly in tapping some of the

productive employment generating sectors such as Fisheries, Commercial Floriculture,

Forest and Agriculture based industry. According to Employment Department of Jammu

and Kashmir, there are 1.2 lakh educated unemployment registered with various

employment exchanges in the state. According to reports, a team from government of India

conducting an economic survey estimated that 4 to 5 lakhs of the educated unemployed are

residing. Recently it was stated in the state legislature that there are 350574 government

employees out of which 78100 are the personnel of the police force. An additional 6,000

persons were being recruited in the police taking its strength to about 85,000. The rest

contain the employees of corporations, contractual employees, public sector units and

adhoc workers. The annual pay of these employees exceeds Rs 3500 crores. The highest

number of government employees in proportion to the population of an area anywhere in

the world. However there is a limit in the government sector to the creation of jobs. At

present most of the government departments and organizations especially corporations are

over staffed. Most of the corporations are in loss, which are unable to pay the salary of

their staff for months. Among Kashmiri youth over the last years a mindset has developed

that a government job is the most secure proposition. It is a lifelong social security. After

the retirement one is entitled to a pension. In 2010 recruitment there has been a move from

government of India to abolish the system of official pension for persons. It is pathetic to

18
see highly educated persons aspiring for a class IV job in any government department.

Government has started a policy of keeping highly trained professionals on a monthly dole

without any work.

Within the state and outside Government should encourage and motivate investment in

these ventures by giving some attractive incentives and fast track allowances. There can

also be persuaded to invest in productive ventures among non- resident Kashmiris rather

than block their resources in dead investments like real estate. No doubt constructing

houses is a deposit appreciating in value over a period of time but it has no moral and social

value for the local people. For them it is a dead investment for all practical purposes and it

needs to be emphasized that the growing unemployment is the greatest challenge can

overshadow all other problems. It cannot be tackled by slogans and ad hoc measures. It

requires define and clear policy with a time bound blue print to tackle various possible

ways of employment. The government needs to realize the explosive dimensions of the

unemployment problem. Almost half a million educated unemployed youth feeling under

siege without any avenue of gainful and productive employment is surely a recipe for

disaster. The frustration of the unemployed youth is increasing rapidly which apart from

increasing their alienation is converting them into a readymade material for harmful

exploitation. Someone needs to wake up and tackle the problem head on before it blows

up in every one’s face with revenge. No doubt large number of highly educated youth are

working on various courses in the field these days but it is out of compulsion and not of

their own choosing. Impatience is second one. Nobody has the patience to put in hard and

dedicated work and wait for results. The society has to reform itself before it can get rid of

the ills that are plaguing it. Which there have a tendency to leave everything to the

19
government which we are disown except where our material interests are concerned.

Whether the government likes it or not and they have a serious problem on their hands. All

other problems emanate this is the basic problem of unemployment. It cannot be set right

by creating thousands of government slaves on dole. However setting up a corporation will

not solve the problem and there are already host of government corporations in the red.

This would provide employees a guarantee against unscrupulous elements trying to exploit

unemployed youth under the cover of providing employment abroad. It would eliminate

the necessity of antecedent verification for foreign companies as the government would be

involved in sponsoring the prospective employees.[12]

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1.3 Causes and Consequences of Unemployment in Jammu and Kashmir

In 2011 census Jammu and Kashmir has 6 lakh unemployed youth. This number was

increasing at an alarming rate. The Annual employment and unemployment survey, Jammu

and Kashmir ranked first in North India. In 2011 report a US based development agency

“Mercy Cops” found that 48% Kashmiri youth were unemployed.[13]

The main causes of unemployment in Kashmir are:

1. Conflict Zone:-Kashmir being a conflict ridden zone has far less opportunities for

employment than rest of the states of India. The conflict situation in India’s conflict

zones like the distant North-East or Jammu and Kashmir, especially in the valley

of Kashmir, has brought the issues of women into the attention and forced every

right thinking citizen to focus on them. The conflict situation, especially since the

1990’s, has inflicted havoc in the psycho-social health of women who have proved

to be the vilest victims of conflict mostly in an indirect way through the pain and

sorrow effected upon their loved ones, though representing ample pliability.

Kashmiri women are definitely in acute disturbance due to the decade’s long on-

going conflict situation. They live in fear and a constant sense of anxiety. A chunk

of them have lost their husbands and sons in the bloody violence. Many of them

have lost their respects and chastity due to rapes and molestations in the severe and

peculiar conflict situation.[14]

2. Inefficient Government:-The youth which was already against the alliance

government in Kashmir made it a point to toss their anger at the state’s inefficiency

which ended into protest. Government should have maintained a soft angle for the

people but they answered every stone with a bullet and pellet. The government’s

21
 inexperience and immaturity provided enough space for this to become an

obsession of Kashmiri youth. The government needs to understand that if they have

to work as per their promises they shall have a soft corner for their people. They

wasted a lot of time in forming the government and then the current situation

prevailed which has only created anti-PDP opinions among the people. The death

of the soldier in Kashmir is highlighted in a way that the people of India start calling

the person anti-national who tries to say something in favour of Kashmir. The

outcomes of such things are disruption in communal harmony, and harassment of

Kashmiris. The media is in a race for TRPs and for such a race any sort of

fabrication is also overwhelmed. These situations make any government sensitive

to be collapsed especially at a time when their alliance partners are unwilling to

support them.

3. Shutdowns in Kashmir:-in Kashmir valley there are frequent shutdowns. These

shutdowns seriously affect the educational setup of the valley and as a result

students are not able to concentrate on their studies. Moreover various youngsters

also suffer from various physical and mental illnesses. As the spell of shutdowns

and the government imposed curfew got continued, the public had been feeling

tiredness and also visible from the number of private vehicles plying on roads in

the valley. Businessmen in the Kashmir valley had been counting their losses and

looking for an opportunity to continue their activities. This could be judged from

the fact that most of the shopkeepers remained present in front of their shops with

shutters looking for a chance to career to customers. In this way shutdowns are the

main cause of unemployment in Kashmir valley. The young bulge has been at the

22
 Centre of any debate on Jammu and Kashmir during the past decade, in particular

with reference to unrest in the Kashmir Valley. Kashmiri youth have always been

at the crossroads of the situation, disordered with having to face many issues at any

time. From deprivation of political rights, merit and justice, to undecided identity,

they face a range of challenges. While unemployment is one aspect of the problem

in Jammu and Kashmir that could push an ordinary youth towards frustration, a

overcome democratic space and a sense of insecurity in their own land remains the

biggest obstacle in their growth

4. Declining Art and Crafts:-the Kashmir Valley has suffered severe economic

setbacks due to misperception in the region over the past 20 years. Every sector of

economy has been affected, be it art and handicrafts production, medium and small-

scale industrial units, the horticulture sector and the tourism sector. Kashmir art and

handicrafts facing the vicissitudes of militancy adopted such measures and tactics

whereby they were able to overcome the limitations of the market defined by tourist

arrivals in the valley and integrate themselves with the national and global

economy. The art and handicrafts sector did not so without any help from the state

and in extremely difficult conditions. The export of handicrafts has decreased

during the years of conflict in the valley.

The comparative growth of Kashmir art and handicrafts with suffered to a large

extent with the broke down of turmoil respect to other states lowered down during

the period of turmoil. The downward trend of economy has been acutely felt since

late 1980s when militancy gained momentum. It is a vicious circle in which

23
 violence has led to underdevelopment and vice versa, and in this gruesome scenario

it is the common people of the region who suffer the most.

5. Less opportunities than other states:-increasingly the youth of Kashmir

especially the student cohort of the value and have to seek career and educational

opportunities outside the state. There are very less job opportunities in Kashmir, as

there are no multinational businesses which can provide us protected jobs and as a

result people are forced to move out the valley to the cities like Mumbai, Bangalore

and Delhi to earn their living facilities. There are other issues like shortage of power

and lack of good colleges in technical, management and medical streams. The

young students have to meet various challenges in their pursuit of higher education.

They have to struggle a lot in finding suitable jobs. These students get exposed to

various job opportunities and possibilities outside Kashmir. Their struggle plunders

them with suitable placements in different sectors outside Kashmir. Various

educated youths are not able to carry out their dreams. The government have failed

to solve the issue of increasing unemployment in the valley. It is the responsibility

of the government to provide jobs to the youth, so that they don’t have to leave the

valley in search of jobs.

6. Underdeveloped or No Industrial sector:-Political insecurity, rough territory and

lack of infrastructure have been a constant hurdle in the industrial development of

the state, particularly in Kashmir region. The industrial structure whether private or

public is in messes thereby failing to absorb a big chunk of educated youth of the

state. Due to weak or no private sector, the educated unemployed youth of the state

have replicated themselves only towards government sector where there are bleak

24
chances of finding the employment. The state government needs to consider the

availability of skilled manpower and capable enterprises in each relevant industry

sector before forming growth supporting industrial policies in those sectors.

Tackling rural unemployment and finding opportunities within the rural areas

would play a key role in controlling unemployment among the educated youth of

Kashmir. There is no expansion in the industrial sector in the state. Government is

doing nothing for the unemployed youths.[15]

25
1.4 Educated Unemployed Women and their Social and Cultural Life

Article 13 of the International Covenant on Economic, Social, and Cultural Rights

articulates: Education is both a human right in itself and a means of realizing other human

rights. As an empowerment right, education is the primary vehicle by which economically

and socially marginalized adults and children can lift themselves out of poverty and

participate fully in their communities (UNESCO, 2003). Several international frameworks

have formalized commitments to improving learning opportunities for women and girls.

The 1995 Beijing Platform for Action called on countries to ensure equal access to

education for girls and eradicate female illiteracy. Girls’ education was singled out again

in the Dakar Framework for Action (2000) and codified as one of the six Education for All

(EFA) goals.

The Millennium Declaration (MDG), signed in September 2000 at the United Nations,

Millennium Summit, commits the member countries to promote gender equality and

empower women and eliminate gender disparity in all levels of education (Goal 3). The

positive ripple effect of education for women and girls is so far-reaching that a number of

international organizations, UNESCO and UN Women foremost among them, have

persuasively argued it may be the single most effective tool for development (UNESCO,

2015).

There is increasing articulation of awareness of the need to address gender inequalities

there is not much evidence of the attitudinal changes. Practically, gender issues still remain

peripheral to what are considered to be more important and urgent issues (Mathabe, 2009).

In developing countries, millions of girls still receive little or no education. Although there

are no formal obstacles preventing women from reaching high positions in colleges and

26
universities, men still dominate at all levels of influence (UNESCO,1998). Until the

beginning of 2008, Africa was on track to meet many of its MDGs but with the recent food,

fuel and financial crises there is a high risk of slippage in meeting these targets, especially

those related to health, education, and food security (Updated Gender Plan of Action, 2009

– 2011). At the national level, Cameroon has ratified a number of international conventions

and instruments related to gender issues, such as the Convention on the Elimination of all

Forms of Discrimination against Women (CEDAW). Unfortunately, we still identify

gender bias and gender neutral behaviors that discriminate and violate women’s rights

(World Bank, 2005; Sikod and Endeley 2006). Although the number of women obtaining

degrees in Universities has increased with time, very few women as compared to men are

retained at the doctorate level. In a survey carried out by ERNWACA Cameroon (2003),

in the developing world, girls and women have less access to education at all levels and

lower levels of literacy. [16]

Education plays an important role in socio-economic development of a country, moreover

women education has immense importance in this regard. Educated women are not only

raising their own socio-economic status but they are enhancing intellectual horizon of their

children, uplifting socio-economic condition of their family and playing a significant role

in raising their family status. There is a strong linkage between education of women and

the development of a nation. In fact, women education has come to be considered more

important than that of men. Dr. Karve, a pioneer for the cause of women education, once

said, “If you educate a man, you educate an individual, if you educate a woman, you

educate the whole family.” The University Education Commission (1949) has also rightly

remarked: “There cannot be an educated man without an educated woman. If general

27
education is to be limited to men or to women, that opportunity should be given to women,

for then it would more surely be passed on to the next generations.” On the other hand,

education also makes the women strong, empowered, creates self- reliance and brings

determination in life. It has a central role in the struggle to achieve women’s equality and

empowerment both in the family as well as in the community. Lack of education,

information and low level of literacy aggravate the situation of deprivation in all sector of

life. Education helps in generating awareness among women about their legal, social,

political and economic rights, provisions and privileges to fight against all sorts of social

discrimination. It enables them to realize their potentialities, developing skills, seeking

employment and improving their nutritional and health conditions. Education helps women

in lightening the burden of tradition of ignorance and strict seclusion within the home, in

equipping them with the expertise and knowledge required to play modern roles, in

widening their horizons and in raising their general status in society. Therefore, educating

women encourages not only their political participation and economic independence but

also improves their quality of life and through them of the whole family and then whole

nation in broader sense.[17]

Jammu and Kashmir has the distinction of having multi-layered and unique cultural blend,

making it distinct from the rest of the country, not only from the different cultural forms

and heritage, but from geographical, demographically, ethical, social entities, forming a

distinct spectrum of diversity and diversions into Kashmir, Jammu and Ladakh, all

professing diverse religion, language and culture, but continuously intermingling, making

it vibrant specimens of Indian Unity and diversity. Its different cultural forms like art and

architecture, fair and festivals, rites and rituals, language and mountains, embedded in

28
ageless period of history, speak volumes of unity and diversity with unparalleled cultural

cohesion and cultural service.

While the Kashmir has been the highest learning Centre of Sanskrit and Persian where

early Indo-Aryan civilization has originated and flourished, it has also been embracing

point of advent of Islam bringing its fold finest traditions of Persian civilization, tolerance,

brotherhood and sacrifice.

People of Jammu and Kashmir - According to historians, the ancestors of Kashmiris are

early immigrants from India proper. With the spread of Buddhism, many scholars came to

Kashmir from far-off lands for research and study. The contact of Kashmiris with the

Roman, Greek and Persian civilizations resulted into a fusion of cultures. Most of the

people claim their descent from the Indo-Aryan stock but one can easily find people

belonging to diverse and different races inhabiting Kashmir with distinct looks, food habits,

dresses, speech, customs and traditions.

Kashmiris have made remarkable contributions to the arts of story-telling and mystical

poetry, the Shiva philosophy, grammar and the sciences. The art and culture of the people

of Kashmir is evident in their folk songs and dances as well as the various arts and crafts

that are world-renowned. Known for their charming beauty, most of the people in the valley

are very fair with light brown to dark hair, blue or grey to black almond eyes, rosy cheeks

and fine physique. Kashmiris are generally non-aggressive and temperate in nature and are

God-fearing. They are considered extremely warm, friendly, and hospitable.[18]

The state Jammu and Kashmir inhabits diverse and separate culture. It encompasses various

lifestyles and habits of the citizens that inhabits in regions of Jammu, Kashmir and Ladakh.

29
Jammu and Kashmir is regarded as a melting vessel of diverse cultures. Citizens from

different social practices and religious exist together quietly in this charming state. Since

moment immemorial, diverse religions like Islam, Jainism and Hinduism have added extra

worth to the inspiring legacy of Jammu and Kashmir. There are as many perceptions of

women being distinguished against as there are cultures. The issues of women

empowerment have only turned to power relations between women and men and shaped

up hostile relations rather than the purchase of empowerment in reality. The tussle is of

ego clashes, decision making, control of resources, public visibility, economic

independence, life with dignity and so on. Women are not always disempowered or slaves,

they are not made to work against their will instead they (women) keep on encouraging

their family members to work hard for the family’s development. Women’s working

alongside men in the fields also imparts a sense of equality to them. It is important to make

efforts towards gathering a combined view about the emergence of Kashmiri women, their

unique history, and the travails and tribulations faced by them and the resilience with which

they not only sustain but also improve their lot. It is also important that the situation of

women in Kashmir should not be presented in a vacuum, but needs to be viewed in context

of the dismal political violence that engulfs the valley. The shaping of the lives of Kashmiri

women, for good or bad, is deeply rooted with Kashmir polity and is a reflection of the

society at large.

As the provincial situation for women is considered by low levels of access to education,

social, economic, healthcare, political opportunities and maternal mortality, however today

the scene is improving. Women’s brightness in the public sphere and space is quite visible

and there is an embarrassment of females enjoying the equality of life as well. Kashmiri

30
women have been discouraged deliberately to a greater extent both politically and

socially.[19]

1.5 Economic Conditions of Unemployed Women in Jammu and

Kashmir

Unemployment is likely to be the major economic problem. The jobless rate has begun to

rise and that the finding work has become rigid. This is particularly the case amongst the

educated youth. The economic policies right from the first Five Year Plan has been the

provision of profitable employment opportunities. Every plan ends up with a greater

backlog of unemployed educated people. At the end of each five year plan, the state has

more unemployed than at the beginning. This has happening because during the planning

period trend and growth rate was significantly lower than the targeted growth. Therefore,

jobs were not created in suitable process.[20]

The problem of unemployment in Jammu and Kashmir among females is predominant

based on Usual Principal Status as the gap between unemployment rate of females in

Jammu and Kashmir (17.1 per cent) and that of all India level (3.6 per cent) is massive.

Unfortunately, the suicide rate has increased and despite being the greatest vice over the

past few years in the Kashmir valley and see many growing unemployment behind it. In a

few decades, Kashmir was among few places across the country with very low suicide rates

and over the past decades the graph of suicides has run north. While the number may be

shocking, the facts that cannot be ignored. One of the major problems that our state is

facing right now is the increasing number of unemployed youth. There was time when

being educated guaranteed employment but more than people become aware of the

31
importance of education, the claim for employment grew but inappropriately the job

opportunities become lesser. Unemployment and poverty go hand in hand. With the rate of

unemployment reaching alarming proportions, the future of our state too is at stake.[21]

Economic survey for the financial year 2011-12 has revealed that the number of

unemployed youth registered in various District Employment and Counseling Centers is

6.1 lakhs ending September 2011. As per the report, 3,21,562 unemployed youth have

registered in Kashmir region and the number is 2,80,285 in Jammu province. Out of the

registered unemployed youth 1,65,208 are matriculate, 77,087 are middle pass and only

3202 are illiterate. More than 20,000 post graduates and more than 85,000 are graduates

have also registered themselves with the employment cells to seek jobs. As per the last

economic survey, it comes to overall unemployment, Punjab (4.5 per cent), Himachal

Pradesh (2.8 per cent), Delhi (2.7 per cent), Haryana (2.6 per cent) and are much better

placed than Jammu and Kashmir. All India figures for unemployment rate stand 2.6 per

cent only. It further revealed that the unemployment rate for females in Jammu and

Kashmir was 17.1 per cent whereas that of males was 3.6 per cent which is far too high

when compared to the neighboring states Punjab11.7 per cent, Delhi 2.8 per cent, Haryana

2.8 per cent and Himachal Pradesh 2.5 per cent.

The report says, that the unemployment is more prevalent in urban centres than in rural

areas of the state of Jammu and Kashmir. Unemployment rate in urban areas based on 66th

Round of NSS stood at 6.5 per cent as against in rural areas at 4.9 per cent. While the Gross

Domestic Product has shown increasing trend both at the state and national level but growth

is not complete and benefits of development innovations programmers do not penetrate to

all the sections of the society especially poor at the grass root level. This leads to various

32
problems like poverty, regional disparities and unemployment. Further the survey says with

the increasing population the work opportunities have not kept pace. Nearly 70 per cent of

the marginal workers are associated with allied activities and agriculture and the problem

is more severe as the incidence of unemployment is more among the educated segments of

youths. Report also says that number of registered job seekers have increased from 1.11

lakh to 6.01 lakh in 2007 and 2011 respectively, thereby registering an increase of 43.9 per

cent.[22]

As per the census 2001, the literacy rate of state Jammu and Kashmir stood at 55.5 per cent

which has increased to 68.74 per cent as per the census 2011. The provisional population

(7 years and above) of Jammu and Kashmir as per census 2011 is 125.48 lakh persons out

of which 72.450 lakh persons are well-educated. The ground situation with regard to

unemployment may be altogether different as the figures of employment exchanges does

not provide exact picture of unemployment in the state of Jammu and Kashmir. The Fifth

Economic Census conducted in 2005, indicates that there are 3.24 lakh institutions in the

state Jammu and Kashmir which are involved in different economic activities. The report

says, the total number of persons working in these institutions was recorded to be 7.52 lakh,

more or less equally distributed in urban areas and rural areas.

The problem of unemployment seems to be an endless crises in the valley, with the statistics

revealing more than 6980 post graduates and 29034 graduates recorded with government

employment exchanges in Kashmir valley are unemployed. The ruling congress and

National conference in their election manifestos of 2008 had promised to remove the

problem of unemployment from the state with the creation of new job opportunities for the

educated youth, reports a local news agency KNS. It revealed that the valley has 3567 arts

33
post graduates unemployed. The unemployed lot poses degrees in English, Political

Science and Urdu etc. The statistics reveals that in valley there are more than 29034

graduates who are unemployed and the number of jobless graduates is 12426 in Jammu

province. In Kashmir division there has 46703 people unemployed who have passed 10+2

in various streams where as in Jammu division the number of unemployed youth is 27212.

With Jammu and Kashmir spinning under the unemployment crises, out of the total number

of 240000 unemployed educated youth in the state, Kashmir division appears to be worst

affected, more than 1,55,000 of its educated youth unemployed. And there are more than

4500 registered degree holders of engineering who are unemployed in the state and that the

number of unemployed diploma holders is more than 8500. The report remarked that there

are 5500 unemployed ITI trained youth in the state Jammu and Kashmir.[23]

Unemployment is a hurdle between the youth and their future, but the fact that it is an

increasing stage and makes them for the future. Working in the private sector may need

more hard work but there are also more chances to grow. It highlights the unemployment

in Kashmir as:

 The number of registered job searchers has increased from 1.11 lakh to 6. 01 lakh

in 2011 registering an increase of 43.9%.

 In Kashmir province 3, 21,562 unemployed educated youth have registered and 2,

80,285 unemployed youth have registered themselves in Jammu region.

 In urban areas unemployment rate raised 6.5% as against 4.9% in rural areas.

 Unemployment rate for females is 17.1% whereas the unemployment rate for males

is 3.6%.[24]

34
References

1. Griffiths, M. (2017). Classical and Keynesian Economic Explanations for

Unemployment. Skidmore College

2. Mg20-topic-sg.pdf (Unemployment)

3. World Employment and Social Outlook (2017). International Labour Organization

Geneva, ISBN 978-92-2-128882-4

4. Youth Unemployment, a Concern for All. Way Report

5. Majumder, R and Mukherjee, D (2013). Unemployment among Educated Youth,

Implications for Indians Demographic Dividend. Department of Economics,

University of Burdwan

6. Employment and Unemployment Scenario in India

7. Bairagya, I (2015). Socio Economic Determinants of Educated Unemployment in

India. Working Paper 343. The Institute for Social and Economic Change

Bangalore. ISBN 978-81-7791-199-2

8. www.importantindia.com/20397/

9. Khan, B. A. (2013). Unemployment and Employment pattern in Jammu and

Kashmir: A Case Study of Kupwara District. International journal of Educational

Research and Technology, PP 79-89.

10. Nengroo, A.H. (2015). Employment and Unemployment Scenario in Jammu and

Kashmir. IJSRST Vol.1, Issue 3.

11. News Kashmir Exclusive, Unemployment Shatters Kashmir, 13 September, 2015

12. www.kashmirfirst.com/articles. The Explosive Unemployment, 12 September,

2009.

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13. zubairwar.blogspot.in/2017/01/main-causes-of-unemployment-in-kashmir.

14. www.wikipedia/kashmirconflict

15. Kashmirobserver.net/2016/by Insha Farid/employment crises-who is responsible.

16. Yeba J.S (2015). Socio-Cultural Factors Affecting Gender Inequality in Higher

Education: The Case of Doctorate Students in Some Cameroonian Universities.

7:178-200

17. Bhat, S., Bhat, A. and Chinnathuri, P (2016). Educational Status of Women in

Jammu and Kashmir with Special Reference to Rural Areas. The International

Journal of Indian Psychology, Vol.3, Issue 4, No. 65

18. www.peacekashmir.org/tourism-culture/cultural background.

19. www.discoveredindia.com/culture in Jammu and Kashmir.

20. Sharp D, Introduction of Unemployment.

21. www.Newskashmirmagzine/unemployment Shatters Kashmir.

22. www.Greaterkashmir/ Oct 18, 2016.

23. www.Kashmirtimes/ J& K has highest unemployed youth in India.

24. Unemploymentinindia.blogspot.in/ July 5, 2007.

36