The Department of Statistics (DoS) has released its semi-annual report on
newly created jobs in Jordan during the second half of 2022. This report, both
concise and significant, holds comparable importance to any economic analysis
of the country. A brief examination of the press release and its analysis
underscores the document's value.
اضافة اعلان
During challenging economic periods, women emerge as the favored
workforce
In the latter half of 2022, there was a net increase of 3,062 jobs (the
number of jobs created minus the number of jobs lost) compared to the first
half of the year. This indicates a modest improvement in job creation within
the Kingdom.
The majority of newly created jobs, accounting for 71.1
percent, were awarded to males, while the remaining 28.9 percent went to
females. Surprisingly, the net increase in newly created jobs for males during
the second half of 2022 decreased by 3,178 jobs, while females experienced an
increase of 6,240 jobs compared to the first half of the same year.
Is it possible that non-Jordanians are competing for the net new jobs and taking them away from Jordanians, as some may claim? The numbers reveal that 88.6 percent of the total net jobs went to Jordanians in the second half, reflecting an improvement over the percentage (87.9 percent) observed in the first half.
While some may interpret this as a positive development,
especially considering the historically low participation rate of women in the
labor force (which has ranged between 12 and 14 percent over the past three
decades), it raises a potential hypothesis. It suggests that employers might be
hiring women predominantly during economic downturns to exploit the wage gap,
paying them less than their male counterparts and consequently reducing overall
wage expenses.
The hypothesis that women become preferred employees during
challenging economic times due to wage discrimination gains further support
from the following observations: the largest share of net newly created jobs is
allocated to the 20-29 age group, which typically constitutes a lower-wage
demographic. Moreover, the only demographic experiencing job losses is the 40+
age group, considered a higher-wage category. This suggests a potential shift
in the job market from high-wage earners to lower-wage groups.
The
bias toward hiring more women is particularly evident within the educated
demographic. Among individuals with a bachelor's degree or higher, the
percentage of newly created jobs for males is 39.2%, compared to 63.7% for
females. This data reinforces the notion that women attain more credentials
than men to compete for the same jobs, making them the more educated group.
Employers, for various reasons, seem to prefer hiring them when economic growth
is sluggish, potentially to reduce overall wage expenses.
Is it
possible that women shifted towards the public sector? No, as the public sector
accounted for only one-fifth of the net newly created jobs. Consequently, the
discrimination and resulting demand appear to be predominantly within the
private sector. From an economic policy perspective, this emphasizes the need
for the government to address the imbalance in the larger private sector before
actively promoting the transition of more females into this sector.
Local economic
development
What about local economic development? During the second half of
2022, over 60 percent of the total net jobs were created in Amman while only
0.2 percent of the net new jobs were created in Ma’an.
The majority of newly created jobs, accounting for 71.1 percent, were awarded to males, while the remaining 28.9 percent went to females. Surprisingly, the net increase in newly created jobs for males during the second half of 2022 decreased by 3,178 jobs, while females experienced an increase of 6,240 jobs compared to the first half of the same year.
Amman
led in net newly created jobs, accounting for 61 percent of the total net jobs
created, whereas Ma'an reported the lowest percentage in newly created jobs,
with a rate of 0.2 percent of the total net newly created jobs.
Is Jordan a service
economy?
Retail trade and repair of motor
vehicles and motorcycles constituted the largest category within the net new
jobs, accounting for almost 40 percent of the total. Specialists received the
highest share, comprising 33.2 percent of the net new jobs, followed by sales
and service workers. This trend indicates that Jordan is evolving into a
service-based economy. The question arises: do policymakers intend for it to
remain this way? It is a question worth exploring.
Quitting and
foreigners
Why do Jordanians quit
their jobs? The largest percentage (54 percent) underscored inappropriate
working conditions and the nature of the job, including factors such as the
distance between home and workplace and the long working hours. Note that in
another survey, 50 percent of surveyed women refused job opportunities because
of transport.
Is it possible that non-Jordanians are competing for the net
new jobs and taking them away from Jordanians, as some may claim? The numbers
reveal that 88.6 percent of the total net jobs went to Jordanians in the second
half, reflecting an improvement over the percentage (87.9 percent) observed in
the first half.
For policymakers and
pundits, such a report, based on a survey of 50,000 households, may provide a
treasure trove of indicators of where policy should operate. Kudos to the
Department of Statistics for such transparent and precise effort and outcome.
Yusuf Mansur is CEO of the Envision Consulting Group and former minister of state for economic affairs.
Disclaimer:
Views expressed by writers in this section are their own and do not necessarily reflect Jordan News' point of view.
Read more Opinion and Analysis
Jordan News
.jpg)
.jpg)
