Raad Mahmoud Al-Tal

Unemployment among Jordanians remains one of the most pressing economic and social challenges. It is a key driver behind the Economic Modernization Vision, which aims to stimulate growth and strengthen the competitiveness of sectors most capable of generating jobs for Jordanians. Yet beyond the familiar headline figures, deeper insights emerge when examining unemployment among non-Jordanians residing in the Kingdom -commonly known as foreign labor- which exposes structural imbalances in the local labor market.

Data from the third quarter of 2025 reveal that unemployment among non-Jordanians stood at 9.2 per cent, a slight decline of 0.3 percentage points from the previous quarter. By contrast, unemployment among Jordanians reached 21.4 per cent, more than double that of foreign workers. The 12.2-point gap is not trivial; it highlights a fundamental mismatch between labor demand and the local workforce. The economy is producing jobs, but they are not attracting Jordanians.

Breaking down the data by gender underscores the disparity further. Unemployment among male non-Jordanians was 8.1 per cent, compared to 18.0 per cent among Jordanian men. Among women, the gap widens dramatically: 14.7 per cent of non-Jordanian women were unemployed, versus 33.9 per cent of Jordanian women. This nearly 20-point difference highlights the particular barriers faced by Jordanian women in entering and remaining in the labor market.

When focusing on those aged 24 and above—the age group most relevant to labor market participation—the gap remains striking. Unemployment among foreign workers in this cohort is 7.1 per cent (6.4 per cent men, 11.5 per cent women), compared to 17.2 per cent among Jordanians (13.5 per cent men, 30.1 per cent women). This indicates that lower unemployment among foreign workers is not merely due to the presence of young, mobile labor; it is a persistent pattern across age groups.

Trends over time show modest improvements in Jordanian unemployment compared to the third quarter of 2024, with a 0.1-point decline. Yet, compared to the previous quarter, unemployment rose slightly by 0.1 point. Male unemployment has fallen by 4.4 points since 2021, whereas female unemployment continues to rise, suggesting that gains in employment have been largely concentrated among men.

These figures reveal a key insight: the Jordanian economy generates jobs, possibly at a faster rate than Jordanian unemployment rates suggest. However, these opportunities are often not attractive or suitable for Jordanians, whether due to wages, working conditions, job nature, or even voluntary avoidance. In contrast, foreign workers are more willing to occupy these roles, particularly in labor-intensive, low-wage sectors such as construction, agriculture, and services.

The persistence of this gap presents a dual challenge for policymakers. High unemployment among Jordanians strains social stability and underutilizes domestic talent, while low unemployment among foreign workers signals active labor demand that is not leveraged for Jordanians. Therefore, labor market reform must be prioritized alongside economic growth.

Addressing the issue requires two parallel strategies. First, improving job quality and ensuring decent working conditions in sectors heavily reliant on foreign labor, making them more attractive to Jordanians, especially women. Second, aligning education outputs with market needs through targeted training programs for high-demand sectors, while enhancing public transport and childcare options to support female participation.

Examining unemployment through the lens of Jordanians versus foreign workers is not just a statistical exercise; it reveals the structural distortions that prevent Jordanian youth from accessing existing opportunities. Reducing unemployment requires more than increasing the number of jobs it requires “re-engineering the labor market” to absorb Jordanian workers effectively. The challenge is not only the quantity of jobs but also their suitability.