Abstract The Kashmir Valley has gone through prolonged civil strife and unrest since 1980. The government took stock of the performance in major developmental programmes and the policy initiatives. However, the drawbacks of unrest violence put it to tremendous economic hardships. Consequently, there are virtually no engines of job creation. Productive resources converted into unproductive factors. This prolonged cycle of unrest became the stumbling block for economic development. Growth and development get retarded to a large extent. Due to serious unemployment and economic downturn during the early turbulent phase of 90s, a large number of youth crossed Line of Control. Forced migration of Kashmiri Hindu and pundits took place to a large extent. Whole pattern of employment in was distorted and disrupted. The instability and lack of any conclusive resolution have left the population of Kashmir divided and uncertain about their future resulted impoverishment through the channels of reduction of the capital, income and employment, physical destruction and mass displacement of human resources. UT of Kashmir is the highest militarized zone in the world. There is no part of the world which has this kind of concentration of military presence. In the light of research work, the main objective is to examine trend and structure of workforce. To look the trends of workforce growth and changes in distribution of workforce in respect of gender and geographical area since 1980s due to violence results out-migration and disruptions in the pattern. To examine and analyze the existence of new Economic Concept “Negative employment” in Conflict Zone Kashmir India Key words: - Conflict zone, Unemployment, Economic downturn, Migration, Resolution, and Mass displacement