Employment first… the key to reforming Jordan’s labour market
The success of modern economies is measured by their ability to create employment opportunities rather than simply by the number of unemployed individuals. Employment is more than providing jobs; it reflects the strength of investment, the level of productivity, the efficiency of the business environment, and an economy’s capacity to transform its human capital into value-added production. From this perspective, Jordan’s greatest labour market challenge is not unemployment itself, but the economy’s limited ability to generate sustainable employment.
Over the past decade, economic policies have focused primarily on addressing the symptoms of the problem rather than its root causes. Numerous employment initiatives, training programmes, and temporary job schemes have been introduced, yet, their impact has remained limited because they failed to tackle the underlying issue: Weak labour demand. Jobs are not created through administrative decisions; they emerge when investment expands, productivity improves, and competitive sectors grow.
Jordan possesses a significant demographic advantage. The working-age population increased from approximately 3.5 million people in 2010 to nearly 5.8 million in 2025, representing a substantial expansion in the country’s labour supply. This demographic growth could become a powerful engine for economic development if accompanied by sufficient job creation. Otherwise, it risks becoming an economic burden as increasing numbers of people enter a labour market that lacks adequate employment opportunities.
The challenge lies in the imbalance between labour supply and labour demand. While the working-age population has grown rapidly, labour force participation has remained almost unchanged, declining slightly from 39 per cent in 2016 to 38 per cent in 2025. At the same time, only around 30 per cent of the working age population is actually employed. These figures demonstrate that Jordan’s labour market problem is not the availability of workers, but the economy’s limited capacity to absorb them into productive employment.
One of the clearest indicators of this structural weakness is the declining participation of highly educated women. Despite significant improvements in educational attainment, the labour force participation rate of Jordanian women with university degrees fell from 63 per cent in 2010 to 39 per cent in 2025. From an economic perspective, this represents a considerable loss of productive capacity. Human capital requires substantial public and private investment, and when highly qualified individuals remain outside the labour market, the economy loses potential productivity, innovation, and long-term growth.
Young people face similar obstacles. The challenge is not merely securing a first job but navigating an increasingly difficult transition from education to employment. This highlights the need for stronger partnerships between universities and the private sector, expanded apprenticeship programmes and work-based learning opportunities that equip graduates with practical experience demanded by employers. Such initiatives should not be viewed solely as social policies, but as investments that improve labour productivity and strengthen economic competitiveness.
Improving employment outcomes ultimately requires a shift in economic policy. Sustainable job creation begins with a stronger investment climate, lower business costs, regulatory reforms, and greater support for high-value-added sectors such as manufacturing, technology, digital services, and export-oriented industries. Every productive investment generates new demand for labour, while every increase in exports stimulates further production and employment.
Jordan also has an opportunity to benefit from the transformation of the global economy. Digitalisation, remote work, and the knowledge economy are creating new employment models that reduce geographical barriers and connect skilled workers with international markets. By investing in digital infrastructure, modernising labour regulations, and encouraging entrepreneurship and innovation, Jordan can expand employment opportunities for both young people and women.
Reforming Jordan’s labour market should begin with employment, not merely unemployment. Employment is the clearest indicator of a healthy economy because it reflects productive investment, rising competitiveness, and sustainable economic growth. As investment increases and productivity improves, job creation becomes a natural outcome of economic expansion rather than a temporary objective pursued through short-term government programmes. An economy that consistently generates productive employment will also be one that delivers higher incomes, stronger growth and a better quality of life for its citizens.
The success of modern economies is measured by their ability to create employment opportunities rather than simply by the number of unemployed individuals. Employment is more than providing jobs; it reflects the strength of investment, the level of productivity, the efficiency of the business environment, and an economy’s capacity to transform its human capital into value-added production. From this perspective, Jordan’s greatest labour market challenge is not unemployment itself, but the economy’s limited ability to generate sustainable employment.
Over the past decade, economic policies have focused primarily on addressing the symptoms of the problem rather than its root causes. Numerous employment initiatives, training programmes, and temporary job schemes have been introduced, yet, their impact has remained limited because they failed to tackle the underlying issue: Weak labour demand. Jobs are not created through administrative decisions; they emerge when investment expands, productivity improves, and competitive sectors grow.
Jordan possesses a significant demographic advantage. The working-age population increased from approximately 3.5 million people in 2010 to nearly 5.8 million in 2025, representing a substantial expansion in the country’s labour supply. This demographic growth could become a powerful engine for economic development if accompanied by sufficient job creation. Otherwise, it risks becoming an economic burden as increasing numbers of people enter a labour market that lacks adequate employment opportunities.
The challenge lies in the imbalance between labour supply and labour demand. While the working-age population has grown rapidly, labour force participation has remained almost unchanged, declining slightly from 39 per cent in 2016 to 38 per cent in 2025. At the same time, only around 30 per cent of the working age population is actually employed. These figures demonstrate that Jordan’s labour market problem is not the availability of workers, but the economy’s limited capacity to absorb them into productive employment.
One of the clearest indicators of this structural weakness is the declining participation of highly educated women. Despite significant improvements in educational attainment, the labour force participation rate of Jordanian women with university degrees fell from 63 per cent in 2010 to 39 per cent in 2025. From an economic perspective, this represents a considerable loss of productive capacity. Human capital requires substantial public and private investment, and when highly qualified individuals remain outside the labour market, the economy loses potential productivity, innovation, and long-term growth.
Young people face similar obstacles. The challenge is not merely securing a first job but navigating an increasingly difficult transition from education to employment. This highlights the need for stronger partnerships between universities and the private sector, expanded apprenticeship programmes and work-based learning opportunities that equip graduates with practical experience demanded by employers. Such initiatives should not be viewed solely as social policies, but as investments that improve labour productivity and strengthen economic competitiveness.
Improving employment outcomes ultimately requires a shift in economic policy. Sustainable job creation begins with a stronger investment climate, lower business costs, regulatory reforms, and greater support for high-value-added sectors such as manufacturing, technology, digital services, and export-oriented industries. Every productive investment generates new demand for labour, while every increase in exports stimulates further production and employment.
Jordan also has an opportunity to benefit from the transformation of the global economy. Digitalisation, remote work, and the knowledge economy are creating new employment models that reduce geographical barriers and connect skilled workers with international markets. By investing in digital infrastructure, modernising labour regulations, and encouraging entrepreneurship and innovation, Jordan can expand employment opportunities for both young people and women.
Reforming Jordan’s labour market should begin with employment, not merely unemployment. Employment is the clearest indicator of a healthy economy because it reflects productive investment, rising competitiveness, and sustainable economic growth. As investment increases and productivity improves, job creation becomes a natural outcome of economic expansion rather than a temporary objective pursued through short-term government programmes. An economy that consistently generates productive employment will also be one that delivers higher incomes, stronger growth and a better quality of life for its citizens.
The success of modern economies is measured by their ability to create employment opportunities rather than simply by the number of unemployed individuals. Employment is more than providing jobs; it reflects the strength of investment, the level of productivity, the efficiency of the business environment, and an economy’s capacity to transform its human capital into value-added production. From this perspective, Jordan’s greatest labour market challenge is not unemployment itself, but the economy’s limited ability to generate sustainable employment.
Over the past decade, economic policies have focused primarily on addressing the symptoms of the problem rather than its root causes. Numerous employment initiatives, training programmes, and temporary job schemes have been introduced, yet, their impact has remained limited because they failed to tackle the underlying issue: Weak labour demand. Jobs are not created through administrative decisions; they emerge when investment expands, productivity improves, and competitive sectors grow.
Jordan possesses a significant demographic advantage. The working-age population increased from approximately 3.5 million people in 2010 to nearly 5.8 million in 2025, representing a substantial expansion in the country’s labour supply. This demographic growth could become a powerful engine for economic development if accompanied by sufficient job creation. Otherwise, it risks becoming an economic burden as increasing numbers of people enter a labour market that lacks adequate employment opportunities.
The challenge lies in the imbalance between labour supply and labour demand. While the working-age population has grown rapidly, labour force participation has remained almost unchanged, declining slightly from 39 per cent in 2016 to 38 per cent in 2025. At the same time, only around 30 per cent of the working age population is actually employed. These figures demonstrate that Jordan’s labour market problem is not the availability of workers, but the economy’s limited capacity to absorb them into productive employment.
One of the clearest indicators of this structural weakness is the declining participation of highly educated women. Despite significant improvements in educational attainment, the labour force participation rate of Jordanian women with university degrees fell from 63 per cent in 2010 to 39 per cent in 2025. From an economic perspective, this represents a considerable loss of productive capacity. Human capital requires substantial public and private investment, and when highly qualified individuals remain outside the labour market, the economy loses potential productivity, innovation, and long-term growth.
Young people face similar obstacles. The challenge is not merely securing a first job but navigating an increasingly difficult transition from education to employment. This highlights the need for stronger partnerships between universities and the private sector, expanded apprenticeship programmes and work-based learning opportunities that equip graduates with practical experience demanded by employers. Such initiatives should not be viewed solely as social policies, but as investments that improve labour productivity and strengthen economic competitiveness.
Improving employment outcomes ultimately requires a shift in economic policy. Sustainable job creation begins with a stronger investment climate, lower business costs, regulatory reforms, and greater support for high-value-added sectors such as manufacturing, technology, digital services, and export-oriented industries. Every productive investment generates new demand for labour, while every increase in exports stimulates further production and employment.
Jordan also has an opportunity to benefit from the transformation of the global economy. Digitalisation, remote work, and the knowledge economy are creating new employment models that reduce geographical barriers and connect skilled workers with international markets. By investing in digital infrastructure, modernising labour regulations, and encouraging entrepreneurship and innovation, Jordan can expand employment opportunities for both young people and women.
Reforming Jordan’s labour market should begin with employment, not merely unemployment. Employment is the clearest indicator of a healthy economy because it reflects productive investment, rising competitiveness, and sustainable economic growth. As investment increases and productivity improves, job creation becomes a natural outcome of economic expansion rather than a temporary objective pursued through short-term government programmes. An economy that consistently generates productive employment will also be one that delivers higher incomes, stronger growth and a better quality of life for its citizens.
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Employment first… the key to reforming Jordan’s labour market
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