Jordan’s labor market is facing serious challenges. Unemployment among Jordanians is high, while non-Jordanian workers are widely employed—mostly in the informal sector. This situation creates deep imbalances.

 

A recent report by the Jordan Strategy Forum explained the issue clearly. It said there are about 1.4 million foreign workers in Jordan. Around 77 per cent of them work without legal protection. They do not pay taxes or contribute to social security. This puts pressure on the country’s resources.

 

The Jordan Strategy Forum deserves recognition for producing one of the most comprehensive and data-driven reports on the labour market in recent years. By highlighting critical figures—such as the estimated 1.4 million non-Jordanian workers, 77% of whom operate informally, and the rise in Jordanian unemployment from 18.3 per cent in 2017 to over 21per cent in 2025—the Forum provides not only clarity but urgency. The report's transparent diagnosis, trend tracking, and call for reform offer a solid foundation for policymakers to act. Its contribution helps move the national dialogue beyond generalizations toward real solutions grounded in evidence.

 

At the same time, the unemployment rate for Jordanians is 21.3%. This is double the average in Arab countries and four times the global rate. While foreign workers get jobs easily, many Jordanians wait for work that doesn’t exist—or is out of reach.

 

The problem is not only competition. It’s the lack of a clear and flexible national employment strategy. Jordan needs to know who is working in the country and in which sectors. The current data system is weak and out-dated.

 

To fix this, the government should start with three steps:

 

1. Build a national digital database. It should record all workers—Jordanian and foreign, formal and informal.

 

2. Launch smart incentive programs. Small and medium businesses that hire Jordanians should get tax breaks and other benefits.

 

3. Introduce higher work permit fees for foreign workers in open sectors. At the same time, give financial relief to companies that hire locals.

 

Jordan must also regulate the informal labor sector. Over one million people working without taxes or insurance hurts the economy. It also makes support programs unfair.

 

The solution must include education. Many young people finish university but lack skills for the real world. Jordan needs to move from a 'certificate culture' to a 'skills culture.' Academic programs must include real training. Companies should be encouraged to provide internships.

 

Jordan also needs a new system to track labour demand by sector. This system can help match local workers with real jobs. The Ministry of Labour should lead this effort, using real-time data from the market.

 

Municipalities and unions can help. They know the local situation and can help regulate jobs at the local level. Jordan should also set targets for employing Jordanians in key sectors and offer support for training them.

 

Foreign workers should also be included in Social Security. Legally, those with valid work permits are already required to register. However, in reality, most remain outside the system due to informal employment. This weakens fairness, increases the burden on public services, and limits oversight. To address this, Jordan should link work permit issuance and renewal to Social Security registration, and consider allowing workers to reclaim their contributions when they permanently leave the country. This would help balance rights and responsibilities while encouraging formalization.

 

Subsidies for energy, water, and food should be linked to official employment. This encourages both workers and companies to register formally. Jordan can also create a national fund to help workers move between jobs and get new skills.

 

Labour inspections should use data, not random visits. Smart tools can ensure fairness and efficiency.

 

In short, Jordan’s labor market needs structure. Without real policies and action, unemployment will stay high, and public support will be wasted. But with a clear plan, better data, and cooperation between sectors, Jordan can build a fair and balanced labor market for the future.