AMMAN
— The National Employment Program launched by Prime Minister
Bisher Al-Khasawneh
at a press conference on Sunday was met with both optimism and skepticism by economists
and businesspeople.
اضافة اعلان
The
program is set to create 60,000 sustainable job opportunities in the private
sector in 2022 to combat the high unemployment rate amongst Jordanians, which
stands at 23.2 percent.
The
government allocated JD80 million for the program; it will directly subsidize wages
of workers covered by the program at a value of JD150 per month for six months,
provided that the work contract is valid for at least one year.
On
December 22, 2021, the World Bank approved $112 million in financing to support
the government's efforts to stimulate the private sector by creating job
opportunities for Jordanians, train them in skills required for work, and
reduce high unemployment rates.
Director-General
of the
Jordanian Businessmen Association Tariq Hijazi told
Jordan News that “the
program is ambitious, but while such programs would help combat the high
unemployment rate, currently there is no supply of job opportunities.”
"The
issue is that we do not have real
job opportunities, which is the reason for the
high unemployment rate. It is not that the private sector does not want to hire
people. The reality is that the current state of the economy does not allow for
creating new jobs," Hijazi said.
“Even
if this big number is employed now, if the economy does not grow next year, we
will end up with 60,000 unemployed people once their one-year contract ends,”
he said.
While
he lauded the subsidy of JD150 per month, he said the private sector searches
for qualified people to do the jobs they are assigned to do.
Hijazi
said that the government needs to stimulate the economy through a strategic
plan that creates jobs. Such a plan must be carried out in coordination with
universities, which should guide or even force students to study majors
required by the job market, since the country is saturated with graduates of
graphic design, accounting, and more, he added.
Hijazi
stressed that the private sector cannot create job opportunities if there is no
demand and no place to grow businesses.
Economic
adviser and former president of the Banks Association
Adli Kandah told
Jordan
News that the number of people the government is planning to employ is great and
will positively reflect on the economy and unemployment rates, adding that the
JD150 subsidy by the government will act as an incentive for the private
sector.
Kandah
expressed hope that the program will be realistic and applicable. For this to
happen, there is need of "collaboration with the private sector, creating
sustainable jobs, and real commitment," he said.
He
noted that the
Labor Ministry should act as a coordinator for the private
sector and other ministries, to determine what each sector needs in terms of
jobs.
"Businesses
should be able to expand and grow to create new job opportunities, and this can
only be done if the local demand grows, if we have opportunities to export or if
we have new investments that our economy needs," Kandah said.
Economic
analyst
Mazen Irsheid told
Jordan News that the initiative is positive and
practical. He noted that this program is different and has a better chance of
being implemented than programs from previous years.
According
to Irsheid, this initiative will help reduce the burden on the public sector, where
employment is one of the highest in the world, “standing at 40 percent when it
should be around 20 percent”.
"The
private sector should steer the wheel and reduce the pressure on the public
sector since thousands of people have been waiting for their turn to be
employed through the Civil Service Bureau," Irsheid.
Political
economy specialist
Zayan Zawaneh told
Jordan News that he hopes this program is
successful. However, he recalled the many problems government employment
programs had in previous years.
Zawaneh
added that the Ministry of Labor should not be the only one required to address
unemployment. He said that this issue is the responsibility of the entire
government, which should focus on vocational and university education, technical
skills for job-seekers, and ways to attract foreign and local investments.
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