Bridging skill gaps key to rein in unemployment rate

AMMAN — There were 419,000 unemployed people in Jordan as of the end of last year, according to data from the Department of Statistics (DoS).

Jordan's unemployment rate during the first quarter of 2023 stood at 21.9 per cent, marking a decrease of 0.9 per cent compared to the first quarter of 2022 and a decline of 1.0 per cent compared to the fourth quarter of 2022, according to the DoS.

Minister of Industry, Trade and Supply and the Minister of Labour Yousef Al Shamali, in a statement pointed out that the main reason for high unemployment rates is the incompatibility of education outputs with the labour market.

Commenting on the figures economist Husam Ayesh told the Jordan Times considering that unemployment is an economic problem, the economic performance did not lead to the creation of real job opportunities.

In its current capacity, the economy can only provide 30 or 40 per cent of the needs of the labour market, he added.
“What is required is a change in policies related to spending, especially capital spending in the budget, in addition to a strong partnership between the public and private sectors under a new mechanism,” he added.

“The more we can bridge the distance between the place of work and the job seeker, the more we will reduce the cost of transport. This will also provide opportunities for additional work,” Ayesh said.

He also called for raising the minimum wage. Government expenditures should be better invested, and projects announced by the government should be implemented, Ayesh continued.

Additionally, more measures are needed to help bridge the skill gap in the private sector as many jobs are being taken by non-Jordanians, he added.