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    02-Sep-2026

Unemployment Is Falling — But the Real Battle Starts Now - By Salameh Al-Draawi, Jordan News

 

 

The drop in Jordan's overall unemployment rate to 16.1% in the second quarter of 2026, down from 16.5% in the same period last year, is a positive signal — especially since this improvement came against a turbulent regional backdrop whose effects are still being felt in investment, trade, and economic activity.
 
 
 
More importantly, unemployment among Jordanians fell to 21%, a year-on-year drop of 0.3 percentage points, while unemployment among Jordanian women fell by 2.5 percentage points, and unemployment among women overall dropped by 5.3 percentage points to reach 19.9%. A four-year comparison also shows the unemployment rate down by 1.7 percentage points.
 
These figures confirm real improvement, but at the same time they reveal how much distance still remains before the economy reaches better employment levels.
 
The problem does not stop at the unemployment rate itself — it extends to its composition. The data show that 51.8% of the unemployed hold a secondary-school certificate or higher, which brings back to the forefront one of the labor market's most complex problems: the gap between what the education system produces and the skills jobseekers actually have, on one hand, and the real needs of economic sectors, on the other.
 
For this reason, the sustainability of falling unemployment depends on the economy's ability to create jobs at a pace that outstrips the growth of new entrants into the labor market. That requires productive economic growth driven by private-sector investment and business expansion, rather than reliance on temporary employment programs or the public sector's capacity to absorb workers.
 
This is what gives added weight to the major projects Jordan has begun implementing or preparing in the water, transport, energy, logistics, and industrial sectors. The economic value of these projects should not be measured only by the size of the investment or the number of direct jobs created during implementation, but by their ability to activate other sectors, generate demand for supporting industries and services, and open the door to new investments.
 
But investment alone is not enough if the available skills remain disconnected from what it requires. That is why linking training and qualification programs to companies' actual demand becomes an essential part of tackling unemployment — so the economy knows in advance what kinds of jobs new investments will generate and what skills will be needed to fill them.
 
This is the real test of the vision behind economic modernization and the reforms underway: success is measured not just by growth rates or the volume of investment and exports, but by these indicators' ability to reach the labor market and turn economic activity into sustainable jobs for Jordanians.
 
Looking further ahead, bringing unemployment down to lower levels requires a deeper shift in the structure of the economy — toward higher productivity, larger exports, and a broader industrial base, alongside a bigger role for private investment, technology, and higher-value-added services.
 
So the latest numbers are good news, but they are not the end of the battle — only the beginning of a harder phase, one focused on turning this limited decline in unemployment into a sustainable trend, so that economic and investment growth comes paired with faster, clearer gains in job opportunities for Jordanians.
 

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