"Keeping situation peaceful in the state is the biggest challenge before the government and the second biggest is the huge unemployment," Omar said at a function here.
The function was organised to distribute placement orders to 1,423 youth who completed their training at various centres under centrally sponsored 'HIMAYAT' scheme.
He said the government cannot provide employment to every educated youth as the resources of the state are limited.
He, however, said it is the responsibility of the government to create opportunities which help the youth in finding employment.
Omar asked the youth to take benefit of the opportunities in private sector as well as the schemes like HIMAYAT and UDAAN, aimed to provide skills and enhance employability for the youth of the state.
Acknowledging that there was scepticism about the scheme initially, the Chief Minister said it has waned away as many youth are coming forward following its success.
Referring to the difficulties faced by the youth outside the state, Omar said it is a reality that "we are still being looked at with suspicion outside the state."
"Every 15th August and 26th January, the youth of Jammu and Kashmir staying outside the state have to present themselves at the police stations for verification which is very sad. I have taken up the matter with many Chief Ministers on number of times," he said.
He said an exclusive hostel being built by J-K government at Jamia Millia Islamia in Delhi is a step in this regard.
Omar said the youth of J-K are no less than their counterparts in the country in terms of talent, confidence and ability but they lack opportunities.
The Chief Minister also requested Union Minister Jairam Ramesh that laptops be provided to those who complete two years under the scheme.
The Union Minister promptly agreed by announcing that his ministry would provide the necessary funds.
Omar expressed hope that Ramesh's portfolio will not be changed in the expected Cabinet reshuffle saying "as Rural Development Minister he has helped the state."
On the occasion, a memorandum of understanding was signed between the Entrepreneurship Development Institute of Jammu and Kashmir Government and Union Ministry for Rural Development to bring more improvements in the HIMAYAT scheme.
