Khaberni - The Department of Statistics launched an analytical study titled "Jordanian Labor Market: Facts and Figures," in collaboration with the World Bank and in active partnership with the Ministry of Labor and the Ministry of Planning and International Cooperation.
The Director General of the Department of Statistics, Haider Freihat, emphasized the importance of this study, which lasted eight months and aimed to analyze the reality of the Jordanian labor market and develop future visions based on its evidence-based results.
Freihat explained that this study is part of a series of specialized labor market studies, noting that its main goal is to align the department's research plan with the Ministry of Labor's research plan and to enhance the exchange of benefits between the two parties. The study focused on multiple axes, most notably employment, unemployment, characteristics of workers, informal labor, and newly added job opportunities.
He indicated that the results of this study serve as an important reference for governmental and non-governmental agencies, civil society institutions, local and international organizations, donors, and those interested in the social and economic dimensions of the Jordanian labor market who rely on statistics to formulate their policies and plans.
Freihat noted that the partnership with the World Bank represents significant technical and knowledge support to enhance national capacities in line with national priorities to build a more inclusive and competitive economy. This study is the first among ten analytical studies to be launched by the department focusing on specialized topics in social, demographic, economic, and agricultural fields.
The Secretary-General of the Ministry of Labor, Abdul Halim Doujan, confirmed that this study, with its indicators, is not just numbers and statistics but a road map for a deeper and broader understanding of the reality, challenges, and promising opportunities of the Jordanian labor market. He mentioned that it aligns with what the ministry has observed during its efforts to regulate the labor market and serves as a reference for the ministry, which will include the results in its future plans.
He emphasized the importance of shedding light on various challenges, foremost among them informal labor, which poses a strategic obstacle to job stability and social protection. This calls for intensified national efforts to regulate this sector, ensuring fairness and sustainability in the labor market.
He highlighted the importance of vocational and technical education and training and the necessity of aligning its outputs with market requirements, noting that the ministry bases its national employment strategy on data from the Department of Statistics.
Doujan stated that this study is the result of cooperation between the partner governmental entities and showed improvements in most labor market indicators, considering this as an enhancement of the efforts undertaken by the government in implementing initiatives and projects for economic modernization vision.
This study aims to present the most important facts related to the Jordanian labor market, with available up-to-date and reliable data to provide evidence and facts about the labor market situation amid local, regional, and global changes, considering that the labor market is a primary indicator of progress and prosperity for countries, as well as a main indicator for measuring the well-being of the population.
The study addressed several main aspects, most notably the demographic composition, the reality of employment and unemployment, the characteristics of workers, informal labor, and newly created job opportunities.
The results highlighted the most prominent indicators, such as the demographic and population composition, where more than half of the Jordanian society are males and the population is concentrated in economically active young age groups, primarily in urban areas. Jordan has a real demographic opportunity with a rising youth percentage.
The results also showed that interest in vocational education remains limited with a clear disparity between males and females in the types of specializations. It is expected that the Kingdom will achieve what is known as a "demographic dividend" in 2030 with a decline in dependency ratio due to decreased birth rates.
Regarding employed individuals and decent working conditions: The results showed that the employment rate has decreased from 56.7 percent in 2017 to 45.0 percent in 2023, with male employment rates consistently higher than females. The private sector employs 61.4 percent of workers compared to 37.7 percent in the public sector.
According to the results, females prefer to work in the public sector, especially in education and health, where these areas provide more suitable and stable working conditions.
Regarding the informal sector and informal labor, the results indicated that informal labor is more widespread in governorates such as Tafilah and Aqaba, while organized labor is concentrated in the capital, Zarqa, Irbid, and focuses mostly on service activities.
About unemployment trends, the results showed that the unemployment rate in Jordan reached 22.0 percent in 2023 compared to 18.3 percent in 2017.
The unemployment rate among females was 30.7 percent, significantly higher than males at 19. 6 percent for 2023, and unemployment among youth (ages 15-24) reached 46.5 percent in 2023, which is the highest among age groups.
About newly created job opportunities, the results indicated that 95342 new job opportunities were created in 2023, an increase of 5838 from 2022. The new opportunities are concentrated in the capital and urban areas, calling for a redistribution of investments and projects towards remote areas. The supply and demand data show a noticeable gap, with a large supply surplus in the construction sector against a demand surplus in agriculture and fishing.
The cumulative applications in the Civil Service Bureau amounted to 486118 in 2023, 86.5 percent of which were from university degree holders, indicating employment challenges in the public sector and the absorption of graduates.
