Khaberni - The Jordan Strategy Forum released a policy brief titled "Productivity Levels in Jordan: Paradoxes between Reality and Aspiration," providing an in-depth analysis of productivity levels in the Jordanian economy and a comparative analysis with productivity indicators around the world and in Arab countries. This analysis was based on figures and estimates from the International Labor Organization, ranking Jordan fifth globally in work hours equivalent in comparison to productivity.
The summary includes an analysis of productivity in the Jordanian economy at the level of economic activities; to identify the main factors influencing productivity levels and to provide practical recommendations based on the results of such analyses, which contribute to improving the efficiency of the economy and enhancing its competitive capacity.
The Forum conducted an analysis of labor productivity according to the major economic activities, where the results showed that the mining and quarrying sector was at the forefront in terms of worker productivity, registering about 46.1 dinar per hour worked, followed by the agriculture sector at 37.8 dinar.
The summary indicates that the relationship between the number of work hours and the average productivity of a worker per hour is a core issue in analyzing labor market efficiency. It confirms that, despite the common impression that long working hours may contribute to increased productivity, economic literature and international comparisons suggest that this is not necessarily a direct relationship.
To understand this relationship within its international economic context, the Forum analyzed data from 83 countries across various regions in 2023, using two variables: the average number of weekly work hours per worker (the first variable), and the average gross domestic product per hour worked (the second variable), according to data from the International Labor Organization. The preliminary results generally suggest an inverse relationship between the two variables (work hours and productivity); the more weekly work hours increase, the lower the productivity per hour becomes, and vice versa.
The Forum recommended reconsidering the organization of working hours within companies to ensure efficient use of time and increased productivity. This includes shifting towards a corporate culture based on performance and outputs rather than time attendance, alongside developing incentive systems that foster creativity, self-commitment, mastery, and work quality.
It called for ongoing development of human capital by enrolling them in specialized training courses, and those related to developing their digital skills (computer and programming), artificial intelligence, and managerial skills related to time, cost, and project management, and other technical and professional skills relevant to the field of work, which would increase the productivity of the workforce and economic activities in particular.
It emphasized the importance of conducting specialized analytical studies at the sector level, aimed at diagnosing the flaws and low productivity accurately, and identifying the fundamental factors that affect work efficiency within the sector, whether those related to infrastructure, corporate culture, operating patterns, skills, or technology systems used, enabling the design of more targeted and effective interventions, programs, and policies to raise sectoral productivity levels.
