Local Labor Substitution in Jordan: From Slogans to Labor Market Reform
Jordan’s labor market faces a clear paradox. Unemployment remains high, while large segments of the economy continue to rely on expatriate workers in sectors such as construction, agriculture, industry, and services. This reality raises a logical question about why these opportunities do not reach Jordanians, and whether this contradiction can be treated as an opportunity to address unemployment rather than merely describing it.
The problem does not lie in the number of available jobs, but in their nature. Many positions require practical skills or involve demanding working conditions, which reduces local participation, especially given weaknesses in vocational training and the absence of clear career progression and income stability. With the accelerating shift toward digitalization, these jobs now also require basic digital skills in operation and monitoring, reinforcing the need to reskill local workers and align their capabilities with modern labor market needs.
At the same time, many employers prefer expatriate labor due to lower costs and easier hiring conditions, which widens the gap in the labor market and limits local employment opportunities. Here, digitalization can play a practical role—not by replacing labor, but by improving work efficiency and raising the productivity of local workers, thereby narrowing cost differences and making the employment of Jordanians a more economically viable option, through updating work practices and improving production efficiency.
Over the past few years, the government has taken steps to organize the labor market, including tightening oversight of irregular labor, updating recruitment policies, and launching training and employment programs in cooperation with the private sector. The idea of gradual local labor substitution is not new; it has been included in various employment strategies. The main challenge, however, has been accelerating implementation and ensuring that training programs are closely linked to real labor market needs and sustainable jobs.
Despite the importance of these policies, results remain limited. Many training programs are still misaligned with the needs of productive sectors, and incentives offered to the private sector have not yet made hiring Jordanians a clearly sustainable economic choice. This highlights the importance of digital monitoring and evaluation systems that can measure real policy impact and link government support to tangible employment outcomes.
International experience shows that labor substitution succeeds when applied gradually and thoughtfully. In countries such as Germany and Switzerland, practical training begins early within companies, easing young people’s transition into the labor market. In other cases, integrating technology into technical professions has increased their attractiveness and reduced reliance on foreign labor without harming productivity.
At the regional level, experiences closer to Jordan demonstrate that combining quality training, appropriate incentives, and effective labor market regulation yields better results. In several cases, digital systems have helped improve labor market management and ensure fair competition between local and expatriate workers.
In conclusion, local labor substitution is not a quick administrative decision, but a long-term path that requires reforming the employment system as a whole. Digitalization does not reduce job opportunities; it changes their nature and gives local workers a better chance if investment in digital skills is done effectively. Local labor substitution remains a legitimate goal, but its success depends on reforming employment systems and accelerating digital transformation, not merely on announcing the policy. If Jordan succeeds in this transition, the challenge can become a real opportunity to reduce unemployment and build a more balanced and sustainable labor market.
Jordan’s labor market faces a clear paradox. Unemployment remains high, while large segments of the economy continue to rely on expatriate workers in sectors such as construction, agriculture, industry, and services. This reality raises a logical question about why these opportunities do not reach Jordanians, and whether this contradiction can be treated as an opportunity to address unemployment rather than merely describing it.
The problem does not lie in the number of available jobs, but in their nature. Many positions require practical skills or involve demanding working conditions, which reduces local participation, especially given weaknesses in vocational training and the absence of clear career progression and income stability. With the accelerating shift toward digitalization, these jobs now also require basic digital skills in operation and monitoring, reinforcing the need to reskill local workers and align their capabilities with modern labor market needs.
At the same time, many employers prefer expatriate labor due to lower costs and easier hiring conditions, which widens the gap in the labor market and limits local employment opportunities. Here, digitalization can play a practical role—not by replacing labor, but by improving work efficiency and raising the productivity of local workers, thereby narrowing cost differences and making the employment of Jordanians a more economically viable option, through updating work practices and improving production efficiency.
Over the past few years, the government has taken steps to organize the labor market, including tightening oversight of irregular labor, updating recruitment policies, and launching training and employment programs in cooperation with the private sector. The idea of gradual local labor substitution is not new; it has been included in various employment strategies. The main challenge, however, has been accelerating implementation and ensuring that training programs are closely linked to real labor market needs and sustainable jobs.
Despite the importance of these policies, results remain limited. Many training programs are still misaligned with the needs of productive sectors, and incentives offered to the private sector have not yet made hiring Jordanians a clearly sustainable economic choice. This highlights the importance of digital monitoring and evaluation systems that can measure real policy impact and link government support to tangible employment outcomes.
International experience shows that labor substitution succeeds when applied gradually and thoughtfully. In countries such as Germany and Switzerland, practical training begins early within companies, easing young people’s transition into the labor market. In other cases, integrating technology into technical professions has increased their attractiveness and reduced reliance on foreign labor without harming productivity.
At the regional level, experiences closer to Jordan demonstrate that combining quality training, appropriate incentives, and effective labor market regulation yields better results. In several cases, digital systems have helped improve labor market management and ensure fair competition between local and expatriate workers.
In conclusion, local labor substitution is not a quick administrative decision, but a long-term path that requires reforming the employment system as a whole. Digitalization does not reduce job opportunities; it changes their nature and gives local workers a better chance if investment in digital skills is done effectively. Local labor substitution remains a legitimate goal, but its success depends on reforming employment systems and accelerating digital transformation, not merely on announcing the policy. If Jordan succeeds in this transition, the challenge can become a real opportunity to reduce unemployment and build a more balanced and sustainable labor market.
Jordan’s labor market faces a clear paradox. Unemployment remains high, while large segments of the economy continue to rely on expatriate workers in sectors such as construction, agriculture, industry, and services. This reality raises a logical question about why these opportunities do not reach Jordanians, and whether this contradiction can be treated as an opportunity to address unemployment rather than merely describing it.
The problem does not lie in the number of available jobs, but in their nature. Many positions require practical skills or involve demanding working conditions, which reduces local participation, especially given weaknesses in vocational training and the absence of clear career progression and income stability. With the accelerating shift toward digitalization, these jobs now also require basic digital skills in operation and monitoring, reinforcing the need to reskill local workers and align their capabilities with modern labor market needs.
At the same time, many employers prefer expatriate labor due to lower costs and easier hiring conditions, which widens the gap in the labor market and limits local employment opportunities. Here, digitalization can play a practical role—not by replacing labor, but by improving work efficiency and raising the productivity of local workers, thereby narrowing cost differences and making the employment of Jordanians a more economically viable option, through updating work practices and improving production efficiency.
Over the past few years, the government has taken steps to organize the labor market, including tightening oversight of irregular labor, updating recruitment policies, and launching training and employment programs in cooperation with the private sector. The idea of gradual local labor substitution is not new; it has been included in various employment strategies. The main challenge, however, has been accelerating implementation and ensuring that training programs are closely linked to real labor market needs and sustainable jobs.
Despite the importance of these policies, results remain limited. Many training programs are still misaligned with the needs of productive sectors, and incentives offered to the private sector have not yet made hiring Jordanians a clearly sustainable economic choice. This highlights the importance of digital monitoring and evaluation systems that can measure real policy impact and link government support to tangible employment outcomes.
International experience shows that labor substitution succeeds when applied gradually and thoughtfully. In countries such as Germany and Switzerland, practical training begins early within companies, easing young people’s transition into the labor market. In other cases, integrating technology into technical professions has increased their attractiveness and reduced reliance on foreign labor without harming productivity.
At the regional level, experiences closer to Jordan demonstrate that combining quality training, appropriate incentives, and effective labor market regulation yields better results. In several cases, digital systems have helped improve labor market management and ensure fair competition between local and expatriate workers.
In conclusion, local labor substitution is not a quick administrative decision, but a long-term path that requires reforming the employment system as a whole. Digitalization does not reduce job opportunities; it changes their nature and gives local workers a better chance if investment in digital skills is done effectively. Local labor substitution remains a legitimate goal, but its success depends on reforming employment systems and accelerating digital transformation, not merely on announcing the policy. If Jordan succeeds in this transition, the challenge can become a real opportunity to reduce unemployment and build a more balanced and sustainable labor market.
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Local Labor Substitution in Jordan: From Slogans to Labor Market Reform
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