Reversing the trend: Policy levers for Jordan’s labour market recovery

Policy brief Firms, Trade and Sustainable Growth

Jordan faces persistently low labour force participation and high unemployment, particularly among young people, although recent trends suggest the pace of deterioration is slowing. The brief highlights the importance of expanding labour demand, improving job matching, and increasing access to internships and apprenticeships to strengthen labour market outcomes.

  • Labour force participation and employment rates in Jordan, already among the lowest in the world, are continuing to decline, but the pace of decline is slowing. 
  • Unemployment rates in Jordan, also among the highest in the world, continue to increase, but here again, the pace of increase is slowing, especially among women.
  • Young people are particularly struggling with high unemployment rates.
  • Supporting labour demand, whether through migration, facilitating remote work for global employers, or promoting a competitive private sector, is critical to improving labour market outcomes.
  • Policies that allow jobseekers to signal more information about themselves and their skills can help improve matching in the labour market.
  • Programs and policies that allow youth to participate in on-the-job training opportunities, such as internships and apprenticeships, can also improve labour market outcomes.