Unemployment in Jordan: Facts and solutions

1. Unemployment in Jordan: Facts and solutions Dr.Basem Mohammed Lozi, Associate professor Al-Balqa Applied University, Amman, Jordan

2. Study Importance and objectives • 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.

3. Research Methodology • 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.

4. Results • 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.

5. Results • 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.

6. Results • 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.

7. Results • 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.

8. Recommendations • Decreasing the labor force supply by effecting population growth rate and labor force participation rates. This is along-term 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.

9. Recommendations • 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.