JEF warns of job losses, calls for shift to tech, green energy

AMMAN — Addressing unemployment and the mismatch between education and labour market needs requires greater investment in vocational and technical training, as well as promoting education in high-demand sectors such as technology, renewable energy and digital transformation, the Jordan Economic Forum (JEF) said on Sunday.

In its latest report, The Future of Jobs 2025, the forum warned that Jordan's economy is facing increasing pressure from the growing number of university graduates.

The report predicted that automation and artificial intelligence will replace traditional jobs in accounting, customer service and administration, but create new opportunities in data analytics, software development and clean energy.

Jordan's workforce in 2023 reached 1.9 million, out of which 418,000 unemployed.

The Kingdom's labour force participation rate of 39 per cent remains below the global average of 61 per cent, which reflects challenges in youth and female employment and the need to integrate the informal sector into the formal economy, results of the report showed.

The report also highlighted key labour market challenges including low wages, limited incentives for skills development and a weak entrepreneurial ecosystem, revealing that youth unemployment stands at 47 per cent, one of the highest in the region.

Digital transformation offers new opportunities, with enrolment in IT fields increased by 32 per cent between 2020 and 2023. Jordan has also improved its ranking in the Government AI Readiness Index, moving from 55th in 2023 to 49th in 2024, according to the report.

Citing the International Labour Organisation's (ILO) figures, the report showed that 22 per cent of today's jobs will either be created or disappear by 2030, including the creation of 170 million new jobs (14 per cent of the workforce) and the elimination of 92 million (8 per cent), resulting in a net gain of 78 million jobs (7 per cent).

The forum said that the fastest growing occupations between 2025 and 2030 will include AI specialists, cyber security experts, fintech engineers, software developers and data analysts, while postal services, banking, data entry and retail are expected to decline.

The report stressed the need for a national labour market strategy to adapt education to the digital economy, expand training programmes and promote public-private partnerships to create jobs.

It also called for increased digital adoption by small and medium-sized enterprises (SMEs) and greater access to online learning platforms to help job seekers develop new skills.

Policymakers should review labour support policies to shift incentives towards sustainable industries rather than struggling sectors.

In addition, easier access to finance for technology and renewable energy start-ups could boost future job creation, according to the forum's recommendations.

While Jordan faces challenges, the forum believes that the Kingdom can take advantage of global labour shifts by implementing bold reforms in education, vocational training and digital infrastructure to ensure a stable and competitive workforce for the future.