Inclusive Growth in Jordan: World Bank-Backed Efforts Reshape the Labor Landscape ...Middle East

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Inclusive Growth in Jordan: World Bank-Backed Efforts Reshape the Labor Landscape

Jordan stands at a critical juncture in its socio-economic development. The country’s sluggish economic growth, averaging just 2.5 percent over the past decade has left tens of thousands without meaningful work. Unemployment stood at a daunting 22.3 percent, with youth unemployment soaring to 46.1 percent. Even more alarming is the nation’s female labor force participation rate, one of the lowest in the world at just 13.5 percent. In addition, Jordan is host to over 1.3 million Syrian refugees, who pose both a challenge and an opportunity for labor market integration. Recognizing the gravity of these issues, Jordan’s government, in collaboration with the World Bank and with research and policy inputs from institutions like the Jordan Strategy Forum and the Economic and Social Council, has embarked on a transformative journey to expand economic inclusion and job opportunities for its most vulnerable populations.

Backed by $887 million in World Bank financing, Jordan is deploying comprehensive programs to empower women, youth, low-income families, and Syrian refugees. These initiatives include the Economic Opportunities for Jordanians and Syrian Refugees Program-for-Results (P4R), the Jordan Youth, Technology, and Jobs Project, and the Enhancing Women Economic Opportunities Operation. These programs are designed not only to facilitate employment but also to reform the very systems that regulate work and social inclusion. As of 2023, more than 48,000 Jordanians had secured formal-sector jobs through these interventions, over half of them women, and 11 percent from social assistance backgrounds. In addition, 30,000 people received on-the-job training, and more than 4,000 individuals were trained in digital skills, leading to the creation of over 3,200 new employment opportunities in the technology and media sectors. These numbers are not merely statistical accomplishments; they represent lives transformed and futures secured.

    Empowering the Excluded: Women and Refugees Step Forward

    A standout feature of Jordan’s employment reforms is the successful integration of Syrian refugees into the formal labor market. Over a four-year period, the number of work permits issued to Syrians doubled, reaching 340,000, all provided free of charge under progressive labor policies. By 2021, over 162,000 Syrian refugees were formally employed. These changes have helped shift the narrative from refugees as economic burdens to refugees as contributors. Simultaneously, the government eased regulations in sectors such as tailoring, food production, and crafts, resulting in the launch of more than 4,900 home-based businesses, of which 2,800 are owned by women. These policy shifts have enabled marginalized groups, particularly women and refugees, to participate more fully in Jordan’s economic revival. The expanding digital economy, too, has emerged as a space where women and youth can thrive, offering flexible work arrangements and career advancement in non-traditional fields.

    One of the most innovative aspects of the World Bank’s involvement in Jordan is its dual focus on both the supply and demand sides of the labor market. On the demand side, incentives are provided to private businesses to hire and train workers. On the supply side, job seekers, particularly those from vulnerable demographics, receive targeted training in both technical and soft skills. Educational institutions are also being revamped to introduce modern curricula focused on digital literacy, media, and communication. Moreover, regulatory reforms have tackled long-standing structural barriers. Measures have been introduced to make public transport safer for women, expand access to affordable childcare, and provide easier access to financial services and credit. Such systemic changes are ensuring that women are not just entering the workforce but doing so on equal and empowered terms.

    Looking Ahead: A Blueprint for Regional Change

    Jordan’s success is increasingly seen as a model for other countries in the region. One of the most ambitious upcoming efforts is the Enhancing Women Economic Opportunities project, a first-of-its-kind initiative in the Middle East aimed at doubling the female labor force participation rate from 14 percent to 28 percent by 2033. The project, which builds on the lessons and momentum of earlier programs, is already inspiring similar engagements in countries like Egypt. Meanwhile, the ongoing Support to Private Sector Employment and Skills project is preparing to scale its support for social assistance beneficiaries. A new social protection initiative is also being developed, with a sharper focus on long-term economic empowerment. These forward-looking strategies highlight that inclusive economic reform is not a one-off achievement but a continuing commitment.

    The personal stories emerging from these interventions bring the statistics to life. Rua’a Shaheen, a young Jordanian woman, found her first formal job through the National Employment Platform. “Today, I’m formally employed with a work contract,” she said. “I was able to develop my skills, gain new abilities, and expand my expertise in media and social media. I also became financially independent thanks to this opportunity.” Her journey encapsulates the vision that Jordan’s government, the World Bank, and its local partners share: an economy that leaves no one behind and creates space for everyone to thrive. Through comprehensive policy reform, targeted investment, and a firm commitment to equity, Jordan is redefining what inclusive development can look like in the Middle East.

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