Raising minimum wage crucial for economic growth — experts

AMMAN — Amid escalating political unrest in the region, economic issues appear to be sidelined, economists said, noting that neglecting the economic dimension during crises undermines the country’s ability to effectively tackle its social, economic, and political challenges.

Ahmad Awad, founder and director of the Phenix Centre for Economic and Informatics Studies, told The Jordan Times that raising the minimum wage remains a crucial factor in driving economic growth, even if it currently seems disconnected from pressing realities.

Awad said that the minimum wage policy is designed to ensure that individuals and families can meet their basic needs, adding that it serves as a vital tool for promoting social balance, reducing poverty, and enhancing social protection.

He also stressed that more than 90 per cent of countries implement some form of this policy. 

“Increasing the minimum wage is not merely an economic issue; it is essential for promoting social justice, reducing income inequality, and stimulating economic growth,” he said.

Economist Waseem Hussein also highlighted the importance of a higher minimum wage, noting that it enables workers to better meet their basic needs, thereby helping lift families out of poverty. 

Hussein also stressed that even during crises, people's fundamental economic needs persist, and ongoing discussions about wages are vital to ensuring that individuals and families can afford necessities amid conflict.

Hussein added that prioritising economic discussions could help shift the narrative and lay the groundwork for resilience in challenging times.

Khaled Fanatsa, president of the General Federation of Jordanian Trade Unions, said that the decision to raise the minimum wage falls under the jurisdiction of the tripartite committee for labour affairs.