Phenix Center for Economic & Informatics Studies Phenix Center for Economic & Informatics Studies
The State of Work in Jordan 2025 report, issued by the Jordanian Labor Watch of the Phenix Center for Economic and Informatics Studies, has warned of increasing pressures facing the Jordanian labor market in the coming period, amid ongoing geopolitical developments in the region and the continued limited capacity of the economy to generate sufficient and decent employment opportunities.
The report indicates that the slight decline in the unemployment rate in 2025 does not reflect a structural improvement in the labor market, but is rather linked to the continued creation of low-quality, insecure jobs. It notes that the unemployment rate reached 21.2% in the fourth quarter of 2025, compared to 24.7% at the peak of the COVID-19 pandemic in 2020. However, this decline remains limited, given that the economic participation rate stayed low, not exceeding 34.1% during the same period.
According to the report, part of the decline in unemployment is attributable to the narrow base of labor market participants. It points out that net job creation during the first half of 2025 did not exceed approximately 48,000 jobs, a figure far below market needs, especially as between 120,000 and 150,000 individuals enter the labor market annually.
The report stresses that the Jordanian economy remains unable to generate sufficient employment opportunities in both quantity and quality, at a time when informal work and platform-based digital employment are expanding. These forms of work largely lack stability, fair wages, and social protection. The report links this to weak economic growth and low employment intensity, which limits the economy’s capacity to absorb young people, women, and new graduates into stable and productive jobs.
With regard to wages, the report highlights them as one of the most prominent manifestations of labor market vulnerability. Data from the Social Security Corporation show that around 72% of compulsorily insured workers earn less than 600 Jordanian dinars per month, reflecting the growing phenomenon of “working poverty”. The report emphasizes that this wage level does not cover basic living costs, pushing many workers to seek additional sources of income or hold multiple jobs, thereby increasing pressure on the labor market and reducing available employment opportunities. It also notes that the poverty rate stands at 24.1% according to local data, while the World Bank estimates it at around 35%.
In terms of social protection, the report finds that a significant gap persists, with approximately 54% of the workforce still outside the social security coverage, despite the number of subscribers rising to about 1.665 million. It also estimates social security evasion at 22.4%, reflecting ongoing weak compliance with legal provisions and the continued exclusion of a large segment of workers-particularly those in self-employment, platform-based work, and informal activities-from insurance coverage. The report stresses the importance of expanding social security coverage, developing flexible insurance tools, and strengthening monitoring and electronic linkage systems to reduce this gap.
The report further notes that the economic repercussions of the US–Israeli war on Iran and its regional expansion constitute an additional pressure factor on the Jordanian economy and labor market. These include rising energy, transport, and production costs, increased inflationary pressures, and a decline in household purchasing power. It also warns of potential impacts on employment levels, whether through slower performance in certain domestic sectors or a reduction in job opportunities in Gulf countries, which absorb large numbers of Jordanian workers.
The report concludes that addressing these challenges requires more effective economic and employment policies focused on creating decent jobs, raising wage levels, expanding social protection, and strengthening the resilience of the Jordanian labor market in the face of successive economic and regional shocks.
