Jordan’s economic landscape presents a paradoxical situation: while the nation experiences steady economic growth, a staggering half of its productive capacity remains idle. This issue was recently underscored in the World Bank’s report titled "Jobs and Women: Untapped Potential and Unrealized Growth." Released this week, the report paints a stark picture of Jordan’s economic potential alongside the unnerving reality of gender inequality in the workforce.
Economic Overview
According to the World Bank, Jordan’s GDP is projected to grow slightly from 2.5% in 2024 to 2.6% in 2025. This growth is attributed to a recovery in industries like tourism, which has shown relative improvement. However, this economic progress does not extend to the country’s female population, which represents a significant portion of the untapped workforce. With educational attainment levels among women being notably high, their labor participation remains dismally low, highlighting a critical gap that affects not only women but also the overall economy.
The Education-to-Work Gap
Jordan is characterized as one of the Arab states where highly qualified women struggle to find appropriate economic opportunities. Despite impressive academic achievements, women face numerous barriers that limit their participation in the labor market. The World Bank report identifies the interplay between limited job opportunities, social norms, and legal frameworks as key contributors to this disconnect. Many qualified women are drawn to the public sector for job stability, thereby stifling growth in the private sector, which fails to attract new talents and innovate.
Missed Economic Gains
The potential economic gains from increasing women’s labor participation in Jordan are staggering, with estimates suggesting that per capita GDP could rise by 20% to 30%. This pronounced potential is one of the highest in the Middle East and North Africa, making the current situation an "economic opportunity wasted." With demographic pressures mounting and new job creation slowing, capitalizing on women’s economic participation can provide a vital avenue for growth.
Social and Legal Barriers
The report elucidates that entrenched social norms and legal inadequacies continue to hamper women’s participation in the workforce. Prevailing beliefs about women’s roles in the domestic sphere create informal restrictions that prevent them from contributing economically. Legal shortcomings—such as wage inequality, inadequate protections against discrimination and harassment, insufficient public transport, and unaffordable childcare—further exacerbate these challenges. Collectively, they establish a "low participation trap," where the lack of women in the workforce reduces the demand for their skills, thereby reinforcing negative stereotypes regarding their economic roles.
Regional Comparisons
As Jordan grapples with these challenges, regional comparisons shed light on its stagnation. For instance, Saudi Arabia serves as a notable example of significant advances in women’s labor participation, which rose from around 20% to 34% over the last decade, facilitated by legal reforms and workplace initiatives. Meanwhile, Jordan, along with Morocco and Egypt, lags behind, highlighting a critical need for policy frameworks that adapt to societal and educational transformations.
The Call for Comprehensive Reform
The World Bank emphasizes that "partial reform is not enough." A multifaceted approach is required to enhance women’s participation in the labor market. Key recommendations include:
Equal Pay: Implementing fair pay for work of equal value is vital for restoring women’s trust in the labor market and promoting equality.
Transport Infrastructure: Improving public transport should be regarded as essential infrastructure for economic participation rather than a mere public service project. Safe and affordable public transport can facilitate access to workplaces for women.
Flexible Work Arrangements: Expanding flexible working conditions, including part-time and remote work, can significantly increase women’s participation rates. Lessons can be drawn from Gulf countries that have successfully implemented such initiatives.
- Childcare Support: Ensuring access to affordable and reliable childcare is critical for supporting working mothers and minimizing workforce dropout rates after childbirth. This should be viewed as a right and integral to fostering economic empowerment among women.
Conclusion
The World Bank’s report leaves Jordan at a pivotal crossroads: it can either continue to underutilize half of its productive potential or choose to empower women as a driving force of its economic future. The stark reality is that the region can no longer afford to sideline women’s contributions to economic growth. By addressing the legal, social, and economic barriers that limit women’s participation in the labor market, Jordan has the opportunity to not just enhance its GDP but to also foster an environment where all citizens can thrive.
In summary, the untapped potential in Jordan’s economy is not merely a statistic; it reflects a need for urgent, holistic reforms that could transform the nation’s future. By recognizing and harnessing the capabilities of women in the workforce, Jordan can move toward a more inclusive and prosperous economy, benefiting all segments of society.
