Workers' House: No Tangible Improvement in Unemployment; Persistent Challenges in Protection and Rights

The Jordanian Labor Rights Center (Workers' House) released its report for International Workers' Day, revealing a paradox in the labor market. While unemployment rates among Jordanians have remained above 21% since the post-pandemic years, the number of newly created jobs has risen to approximately 95,000 annually. However, this is countered by an estimated 130,000 new entrants into the labor market each year. The report explains that this equation keeps unemployment at high levels, as the gap between market entrants and available opportunities—combined with the nature and conditions of these jobs—limits any significant impact on reducing unemployment rates.

The report noted that unemployment figures have not seen a tangible change in recent years, remaining stagnant with only slight annual decreases that do not clearly reflect on the reality of job seekers. This reflects the economy's slow capacity to absorb new market entrants. Furthermore, the report clarified that the economic participation rate among Jordanians does not exceed 34.5%, dropping to about 15% for women. This means a large percentage of the working-age population is effectively outside the labor market, weakening the potential for any improvement in unemployment rates.

The findings showed that unemployment is clearly concentrated in specific groups; youth constitute 28% of the total unemployed, with their unemployment rates exceeding 45%. This is despite the fact that 47.9% of the unemployed hold university qualifications, reflecting a persistent gap between educational outcomes and labor market needs. Regarding women, the report indicated that unemployment rates reach approximately 34.8% against a 15% participation rate, meaning the majority remain outside the workforce due to a lack of suitable opportunities and unattractive work environments. The report also addressed the situation of persons with disabilities, noting that their economic participation remains low at less than 10%, despite legal mandates for their employment.

In terms of work quality, the report showed that wage distribution indicates limited income levels; only 24.9% of workers earn more than 500 JOD, while nearly one-fifth of workers earn 300 JOD or less. These figures do not align with the cost of living and do not provide sufficient incentive for employment. This data explains why some job seekers delay entering the market or seek alternatives in the informal economy or freelance work. Consequently, the informal economy now accounts for approximately 55% of all Jordanian workers, placing more than half of the workforce outside the umbrella of effective social protection and weakening job stability.

Finally, the report touched on shifts in labor patterns, highlighting the expansion of non-traditional work, including digital platform labor, which now employs tens of thousands in the absence of a clear regulatory framework. The report concluded with a call from "Workers' House" to redirect labor market policies toward improving employment quality by raising wages to match living costs, expanding social protection coverage, and linking government support to compliance with labor conditions. It also stressed the importance of developing flexible regulatory tools capable of keeping pace with new work patterns to ensure a balance between providing opportunities and guaranteeing workers' rights.