Jordan Strategy Forum issues report on education role in limiting informal employment

AMMAN — The Jordan Strategy Forum on Tuesday issued the "Knowledge is Power" report entitled with "Education and its Role in Reducing Informal Employment in Jordan."

The Forum presented some statistics and figures on informal employment in the Kingdom compared with some other countries, in addition to the relationship between the level of education and the rates of informal employment, and recommendations to reduce informal work in the Kingdom, according to the Jordan News Agency, Petra. 

The report also pointed out that informal employment in Jordan reached 53.2 per cent in 2022, which is considered low compared with Egypt 67 per cent and Iraq 68 per cent, and is considered high compared with Austria 1.4 per cent and Germany 2.5 per cent, according to the International Labor Organization (ILO) data. 

The Forum also noted that 61.3 per cent of the education of the informal employment are under secondary school; 78 per cent among females, 59.5 per cent among males.

The percentage of higher academic education in Jordan, regardless to the age, is 33.1 per cent, among population of those who are expected to be in this category.

The Forum added that since informal employment percentage is linked to the low levels of education, the government shall reconsider its policies related to taxes, social security contributions, labour law, social protection, and company's registration procedures, in addition to focus on investing in education, prevention of school's dropout, and the increase of the enrolment rates in higher education.

It added that the employment in informal sector in general lacks skills, and has low salaries compared with the employment in the official sector. Therefore, it recommended building the capacities and skills of informal employment in order to be easily integrated in the official labour market, which contributes in increasing productivity and achievement of sustainable economic growth.