Unemployment in Jordan: Facts
and solutions
Dr.Basem Mohammed Lozi,
Associate professor
Al-Balqa Applied University,
Amman, Jordan
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Study Importance and objectives
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The study explores the unemployment size and unemployment
rates by educational level, unemployment by sectored level,
and unemployment by nationality. The objective of the research
is to sort out the reasons of unemployment and thus examining
these reasons to make the prevailing situation in Jordan in
compliance with the ground facts and to trace out divergence to
adopt the policies in simulation with other nation who have
successfully combated it.
Research Methodology
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the researcher has used the normal probability
model that emerges from a normal cumulative
distribution function. Suppose Yi is the ability to be a
part of labor force and be potentially active in the
work field it actually depends upon some actively
provoking elements or factors denoted by Xi.
Results
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The total population living in Jordan is 5,861,534 (3,134,223 males,
2,727,311 females). 1,712,730 of them are economically active
(1,324,628 males, 387,730 females) with total labor force
participation rate of 29%.
The total number of economically active non-Jordanians in Jordan
was 220,000. 73% of them are from Arab countries (Egypt, Iraq and
Syria). By nationality 40% of economically active non-Jordanians
are Egyptians.
The total number of unemployed was reported as 398,722 (299,564
males, 99,158 females) with a total unemployed rate of 23.2 %(
22.1% for males, 27.9% for females. By nationality unemployment
was 22.1% for Jordanians living in Jordan (19.4% for males, 32.4%
for females) for non-Jordanians living in Jordan the unemployment
rate was 36.1%, much higher than unemployment rates among
Jordanians.
Results
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Unemployment rates among the population aged 25 years of
age or less, which means that these rates are the highest
among the new graduates from secondary schools and
universities.
Unemployment rates among females are much higher than
those for males. This means that the female population bears
the brunt of the unemployment problem in Jordan.
Unemployment rates are much higher among never-married
people than among the married population for both males and
females.
54% of unemployed persons in Jordan have less than a
secondary education.
Results
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The micro and small enterprises are responsible for almost
two thirds 65% of the total private sector non-agricultural
employment in Jordan.
Amman (capital), Irbid, and Zarqa together represent 70% of
the population in Jordan. These cities represent more than
two thirds of the total number of the unemployed.
The public sector and the service sector constitute the largest
sector of employment in Jordan. On the other hand, the
service has witnessed the highest growth and account today
for more than a third of labor force.
Results
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Subject to formulated model various independent variables
gave strong significant results for their impact on
unemployment. As anticipated age and male were negatively
related with unemployment. The regional aspect expounded
that Balqa was inflamed with high unemployment. The results
also indicated that single people are more unemployed than
married because liabilities after marriage coerce them to
condone their asking wages and accept even low paying jobs
inevitably. Rural people are more unemployed than urban.
Moreover the unemployment is lower for males than females,
which is logically interpreted on grounds that in Jordan in
most families’ males are the only breadwinners.
Recommendations
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Decreasing the labor force supply by effecting population
growth rate and labor force participation rates. This is alongterm solution that will take at least 15 years before any real
effects on the labor force supply in Jordan are seen.
Special focus should be placed on the issue of making
student a ware of the scope of education they acquire prior to
the stage where they make themselves fully engaged
towards their desired field of study.
Small scale industries should be established so that those
labors that remain unemployed despite of owing skills in
hand made items and handicrafts can plug their active role in
society as an employed member.
Recommendations
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Corrective measures must be taken by the government to
achieve a smooth flow of productivity and growth persistently.
Balances should be maintained in focusing on the objectives
and performance of various sectors. Moreover an attempt
should be made to uplift all the sectors simultaneously.
Encouraging and helping the Jordanian labor force to be
more compatible with other labor forces in the region in order
to increase the number of Jordanians working outside
Jordan.
Improving the working conditions in Jordan in order to
encourage Jordanian workers working in Jordan, especially
in occupations and economic sector where non-Jordanians
workers are working such as agriculture, construction and
service sectors.