Jordan’s labour market remains one of the country’s most important economic challenges. Unemployment is high, especially among young people and women, while many businesses continue to report difficulties in finding workers with the right skills. This situation raises an important question: Is Jordan facing a problem of labour supply, or is the main problem a lack of demand for labour?

 

The answer is that both sides matter, but the demand side deserves more attention. Jordan has a large number of educated young people entering the labour market every year. However, the economy is not creating enough productive and sustainable jobs to absorb them. Therefore, reducing unemployment cannot depend only on improving the skills of workers. It also requires stronger economic growth and greater private sector investment.

 

This is why we should not look at unemployment simply as a number. We need to understand the journey of a worker through the labour market. A person may start with unpaid work, move into self-employment, then find wage employment, and eventually move into a more specialized and productive job in a larger firm. A successful labour market should make this transition possible.

 

The quality of jobs is also important. Creating a job does not automatically mean solving the unemployment problem. If new jobs are informal, unstable, low paid, or have limited opportunities for skill development, their contribution to economic development may remain limited. Jordan needs more productive jobs that allow workers to improve their skills, increase their income, and contribute to higher productivity.

 

Women face additional barriers. Jordan has a relatively low female labour force participation rate despite the high level of education among Jordanian women. The decision to enter employment can depend on childcare, transportation, working conditions, social norms, and the expected financial return from working. Therefore, increasing female participation requires more than simply creating jobs. It requires policies that address these barriers directly.

 

The same applies to young people. Many young graduates face a difficult transition from education to employment. The problem is not always a lack of education. It is often a mismatch between what students learn and what employers need. Universities, therefore, have an important role in strengthening links with the private sector and providing students with practical and market-relevant skills.

 

Jordan also needs to focus on sectors with stronger potential to create productive employment. Information and communication technology, modern manufacturing, green activities, tourism, and other tradable sectors can provide opportunities for higher productivity and better wages. But this requires an investment environment that encourages private firms to expand and hire.

 

Another important issue is the use of evidence in labour market policy. Governments often introduce programmes with good intentions, but good intentions are not enough. We need to know whether a policy actually works. Does it increase employment? Does it improve productivity? Does it help women enter the labour market? Does it help young people move from informal work to formal employment?

 

This is where research institutions and organisations such as the International Growth Centre can play an important role. Evidence-based research can help policymakers identify which interventions work, which do not, and where public resources can have the greatest impact.

 

Jordan’s Economic Modernisation Vision provides an important opportunity to address these challenges. The objective should not be simply to reduce the unemployment rate. The broader objective should be to build a labour market that creates productive jobs, improves worker skills, increases female participation, and supports movement towards higher-quality employment.

 

Jordan does not only need more jobs. It needs better jobs, more productive firms, stronger links between education and employment, and policies based on evidence.

 

The future of Jordan’s labour market will depend not only on how many people find work, but also on the type of work they find and the productivity they can achieve.