Amman, Feb. 16 (Petra) — The Jordan Economic Forum has released a new report examining structural changes in the labor market, emphasizing the need for investment in vocational and technical training to address unemployment and the mismatch between education outputs and labor market demands.
The report also highlights the importance of promoting education in high-growth sectors such as technology, renewable energy, and digital transformation.
On the Future of Jobs 2025, the report notes that Jordan’s economy faces increasing pressure from the growing number of university graduates yearly. It warns that artificial intelligence and other technological advancements will lead to job displacement in fields such as accounting, customer service, and administration while creating new opportunities in data analysis, software development, digital project management, and clean energy.
According to the report, Jordan’s labor force stood at 1.9 million in 2023, with 418,000 individuals unemployed. The country’s economic participation rate was 39%, significantly lower than the global average of 61%, reflecting persistent challenges in youth and female workforce integration, as well as a lack of effective policies to formalize informal employment.
The forum identified key labor market challenges, including low wages in some sectors, a shortage of incentives for skill development, and an underdeveloped entrepreneurial ecosystem. Jordan continues to experience one of the highest youth unemployment rates in the region, with nearly 47% of young job seekers struggling to transition from education to employment.
The report underscores the opportunities presented by digital transformation but stresses the need for comprehensive reforms in education and training systems. It highlights a 32% increase in the number of students enrolling in IT-related fields, from 7,247 in 2020 to 9,575 in 2023, as a positive indicator of readiness for future labor market demands.
Jordan has made progress in adopting emerging technologies, with the Government AI Readiness Index by Oxford Insights ranking the country 49th globally in 2024, up from 55th in 2023. However, the forum notes that further investment in digital infrastructure is necessary to maximize the benefits of technological advancements.
Looking ahead, the report predicts that global labor market shifts will affect 22% of existing jobs by 2030, with approximately one-fifth of current positions either being created or phased out. Projections indicate that emerging labor trends will generate 170 million new jobs globally, accounting for 14% of total employment, while 92 million jobs, or 8%, are expected to disappear. This results in a net increase of 78 million jobs, or 7% of the global workforce.
The fastest-growing job sectors from 2025 to 2030 are expected to include data science, fintech, artificial intelligence, cybersecurity, software development, and digital security. Other high-demand roles include specialists in autonomous vehicles, UX/UI design, the Internet of Things (IoT), environmental engineering, and project management.
Meanwhile, occupations projected to decline include postal services, certain banking positions, data entry roles, cashier jobs, and administrative support functions. The report also anticipates a reduction in employment for transport workers, sales representatives, newspaper vendors, legal clerks, and claims analysts.
The forum stresses that these labor market changes require strategic interventions to ensure a smooth transition for workers. It calls for a national labor market strategy to align education with the demands of the digital economy, expand continuous training programs, and enhance public-private partnerships to drive job creation.
The report also highlights the importance of supporting digital transformation efforts in small and medium enterprises (SMEs) and expanding access to e-learning platforms to enable job seekers to develop skills without full-time study commitments.
Additionally, the forum recommends revising labor policies to focus incentives on sustainable job sectors rather than struggling industries. It also calls for stronger entrepreneurship policies, including increased funding opportunities for startups, particularly in technology and renewable energy, which have the potential to generate significant employment in the coming years.
Despite ongoing challenges, the forum concludes that Jordan has an opportunity to capitalize on global labor market trends. However, this will require comprehensive reforms in labor policies, education systems, and vocational training, along with increased investment in technology to build a more resilient and competitive workforce.
//Petra// RZ
16/02/2025 12:10:48
