Iran-US conflict will hit job market
Jobs and employment avenues were reduced to a trickle during the past few years. Across India youth have been faced with hard pressing situations as the job market kept on shrinking and reflecting negative growth.
Though the situation was showing some signs of improvement but the West Asia war is likely to have significant impacts on jobs in India as well as Jammu and Kashmir, particularly in export-oriented industries.
Industries like handtools, textiles, and basmati rice exports are facing challenges due to disrupted supply chains, labor shortages, and increased costs. For instance, Ludhiana’s handtool industry is struggling with labor shortages and rising input costs.
The situation in Kashmir too is worrisome as handicrafts have witnessed a slump in sales and workers are facing declining orders and least customer queries. The Micro, Small, and Medium Enterprises (MSMEs) in Jammu and Kashmir, such as handicrafts and horticulture, are at huge risk due to trade disruptions, higher transportation costs, and delayed payments.
Ironically, in Jammu and Kashmir the overall unemployment rate stands at a whopping 24.6 %, compared to the national average of 6.1 %. Among the youth aged between (15‑29 yr), the unemployment rate stands at 32 % unemployment in urban areas, which is highest in India.
Even the scenario seems grim when female joblessness is also taken into account. In Jammu and Kashmir a staggering 53.6 % – of the women face unemployment crisis, which unfortunately is the worst among all states and UTs in India?
Given the situation we can easily say that Jammu and Kashmir like other regions and states is staring at a growing employment crisis.
The high unemployment rate and joblessness will prove to be a deepening crisis that could have long-term social and economic repercussions. Jammu and Kashmir’s employment structure has not evolved with time. Thousands of educated youth enter the job market each year, but the absorption rate remains stagnant.
The UT is currently experiencing an expanding educated youth population, but the economy isn’t generating enough opportunities. Though the government is working on multiple fronts to address the issue, but least change is visible on ground.
The government is primarily focusing on entrepreneurship, skill development, and start-up promotion under Mission YUVA and the idea is to enable youth to become job creators rather than job seekers.
But despite such initiatives, experts say sustained private investment and stronger industrial growth are essential to reverse the trend. The Valley needs to move beyond seasonal employment and low-wage sectors. The UT needs to build a job ecosystem that can hold youth here rather than push them out.
Unless we see private investment and industrial diversification, the crisis will only intensify with time and can even prove to be a huge challenge to tackle within a few years.
This situation can worsen with the west Asia crisis looming large. If the present situation persists, we can face the problem of reduced remittances from the Gulf region which could further affect household consumption and local economies.
Besides, the rising energy costs may lead to inflation, impacting consumer spending and job opportunities further.
