Jordan's unemployment rate drops as Economic Modernisation Vision takes hold

AMMAN — The unemployment rate has begun to fall following the launch of the Economic Modernisation Vision, dropping from 24.1 per cent in 2021 to 22 per cent in 2023, according to the Jordan Economic Forum (JEF).

In a report released on Saturday, JEF noted that recent data on unemployment and newly created job opportunities signal positive progress in Jordan's ability to meet its economic reform targets, which aim to create 100,000 jobs annually over the next decade.

According to the forum, this progress is a crucial step towards achieving sustainable and inclusive economic growth. 

It highlights the resilience of the Jordanian economy in the face of regional and global challenges, including global economic turmoil and political regional instability. 

Citing data from the Department of Statistics, the forum said that a further decline was seen in unemployment to reach 21.4 per cent at the end of the second quarter of this year. 

The department's latest survey on new job opportunities showed that 95,342 jobs will be created in the Jordanian labour market in 2023, representing 95 per cent of the annual target set by the Economic Modernisation Vision, as well as a significant increase compared to the average number of jobs created annually over the past five years, the forum added.

According to the report, 69 per cent of these jobs were filled by men (65,595 positions) and 31 per cent by women (29,748 positions). 

The private sector had the biggest share, accounting for 70.7 per cent of the total new opportunities, the forum noted, underlining its position as a key driver of economic growth and employment.

While the public sector continues to play a key role, absorbing 28 per cent of the new jobs, the forum emphasised that the long-term focus remains on the private sector to achieve the goals of the Economic Modernisation Vision.

Moreover, 87.6 per cent of the new jobs created in 2023 will go to Jordanian workers, with 7.3 per cent going to Arab nationals and 5.1 per cent to non-Arabs.

In terms of economic sectors, public administration led in job creation with 16 per cent of new opportunities, followed by wholesale and retail trade with 14 per cent, education with 13.9 per cent and manufacturing with 13.4 per cent.

JEF Chairman Mazen Hmoud stressed the importance of continuing to reduce unemployment through effective policies that encourage the private sector to create more jobs. 

He also underlined the importance of attracting investment to Jordan in order to reduce unemployment to globally acceptable levels, describing this approach as the best way to promote inclusive economic development and enhance social and economic stability.