The role of migrant workers in Jordan's economy

A discussion was recently held at Yarmouk University, organized by the Center for Sustainable Development Studies, to look at the role of migrant workers in Jordan’s economy. This topic is not new, but it remains complicated because it involves not only the economy, but also social, cultural, and population issues. The reason the issue is still important today is that the Jordanian labor market continues to face major problems.

Official data shows that migrant workers make up about 21 per cent of Jordan’s total labor force. Most of them work in sectors like agriculture, construction, domestic work, and some light industries. These are jobs that many Jordanians do not want to do, so foreign workers help keep these sectors running.

Migrant workers help fill labor shortages and lower costs for businesses, making some industries more competitive. But this also creates a divided labor market. Migrant workers often have lower wages, fewer rights, and worse working conditions than Jordanians. This makes it harder for unemployed Jordanians to compete fairly and find good jobs.

Many migrant workers are employed in the informal sector. This means they often work without legal permits or official contracts, especially in agriculture, construction, and domestic services. These jobs usually don’t offer health insurance, safety protections, or social security. Because of this, the government loses money it could have collected through taxes and fees. Also, Jordanian workers end up competing unfairly with foreign workers in these sectors. And although it’s normal for migrant workers to send money home, in Jordan’s case, this puts extra pressure on the country’s economy by reducing foreign currency reserves.

Solving this problem doesn’t mean pushing migrant workers out or violating their rights. Instead, Jordan needs better economic and labor policies. These should aim to reduce dependency on foreign workers over time and encourage Jordanians to enter all types of jobs. Some ways to do this include raising the minimum wage, improving work conditions, and offering better training programs. This would help make jobs more attractive to young Jordanians, especially in areas with high unemployment.

Looking deeper into the labor market, we see many problems: an uneven spread of jobs across sectors and regions, low participation in the workforce, and unstable unemployment levels. The market is clearly divided into two parts: the primary sector includes stable and well-paid jobs, often in government and finance; the secondary sector includes low-paying, unstable jobs, usually done by migrant workers. According to the Segmented Labor Market Theory, it’s not just skills or education that determine job opportunities, things like social status, connections, and institutional rules also play a big role.

Unemployment in Jordan has many causes. On the supply side, many people have entered the labour market due to migration into Jordan (including forced migration) and the high number of university graduates in fields that don’t match what the job market needs. On the demand side, the economy isn’t growing fast enough to create enough jobs. There is also less demand for Jordanian exports and not enough foreign investment. In addition, changing economic policies and the weak link between education and job skills have made things worse, especially for young people.

In the future, Jordan needs to treat migrant workers as part of the national economy, not as a problem. The key is to organize and regulate this workforce in a way that supports the economy and protects fairness. At the same time, the country must focus on giving Jordanians the skills and opportunities they need to compete in the labor market.

Raad Mahmoud Al-Tal is head of the Economics Department – University of Jordan- r.tal@ju.edu.jo