Context:
Jordan is an emerging Middle Eastern economy whose population consists mainly of people at or below working age. The relatively small economy has few resources, but is attractive to foreign investors due to the population's relatively high level of education. Jordan is considered a stable country in this rather conflict-ridden region.
The economy recorded a growth rate of 2.5% in 2022 (2020: -1.6%). However, the effects of the COVID-19 pandemic continue to be felt on the labour market. Unemployment, which stood at around 22% in 2023, particularly affected women and young people. Female labour market participation was very low at around 14%, although a third of female school leavers went on to study at university. In addition, there has been a shift in employment to sectors with lower productivity and an increase in precarious employment. As the labour market does not yet offer sufficient opportunities for the growing number of qualified workers, highly educated Jordanians in particular often leave the country and find suitable employment or work in the Gulf States in particular.
Despite these challenges, there is plenty of potential. With its Economic Modernisation Vision (2022-2033), the Jordanian government has adopted a comprehensive economic reform plan that aims to create 1 million new jobs by 2033. In addition, the Jordanian government is making extensive efforts to strengthen public administration (Public Sector Reform Roadmap (2022-2025)). This includes structural reforms that also affect the Ministry of Labour, such as the greater involvement of the private sector in policy-making and increased impact measurement of labour market measures.
Objective:
Policy and implementation frameworks for a conducive labour market environment in Jordan are improved.
Approach:
The "Employment in Jordan 2030" project works together with the Jordanian Ministry of Labour and other national partners and addresses the lack of a structured approach and the still inadequate instruments, coordination and competencies for labour market policy design and implementation at national and sub-national level.
Focal areas are:
1. Advising the Jordanian Ministry of Labour on the design of evidence-based labour market policies.
2. Strengthening the institutional capacities of state and private sector actors to improve working conditions.
3. Improved provision of labour market services tailored to specific target groups.