Engineering degrees are highly sought in Jordan, demanding in terms of academic rigor, and costly. But in terms of employment, recent data shows they are not rewarding. In fact, about one-third (even close to 40 percent in some fields) of engineers are unemployed.
What is the cause of this and how can the situation be remedied?Jordanian engineers are among the best in the region and can hold their own in any advanced country. As students, they are selected from among the brightest, and are well-trained, whether locally or in developed countries. The Engineers Association only grants membership, which is a license to work as an engineer, to graduates of accredited universities.
The road toward engineering degrees is fraught with steep requirements: high scores in the General Secondary Education Certificate Examination (Tawjihi), higher university fees than most other majors, and longer years of study. Yet, there is an abundance of engineers.
There are close to 190,000 engineers in Jordan, which means that one out of 10 persons in the national labor force is an engineer; recent estimates show that their numbers grow at close to 8 percent per year. Additionally, there are over 40,000 at universities in Jordan and abroad that will be vying to join the labor market soon.
Since the 1970s, Jordan has been a supplier of engineers (mainly civil engineers) to the oil-rich GCC countries. Currently, there are 26,000 engineers working there: almost three-quarters work in Saudi Arabia, 20 percent in the UAE, and the remainder in Qatar, Kuwait, and Bahrain.
Their employment generates an inflow of remittances to the Jordanian economy. However, employment and remittances vacillate with the rise and fall in oil prices, thus almost making Jordan an oil-dependent economy without oil.
Unemployment among engineers, at 32 percent, is higher than the national unemployment rate of 22.3 percent. Architectural engineering suffers the highest unemployment rate (38 percent), followed by civil engineering (34 percent), and electrical and mechanical engineering (31 percent and 30 percent respectively).
Not only is the government in Jordan unable to affect the demand for engineers overseas, but it is also, due to cuts in capital expenditures, hardly hiring locally. Also, the private sector has suffered what may be the longest economic depression in recorded history. And, the economy in Jordan has not been able to boost productivity since 1988 — the real income per capita in Jordan remains lower than that of 34 years ago.
This also means that production is a low value-added, and requires little to no skill. In addition, Jordan suffers from growing joblessness because the bulk of economic growth is basically in the construction sector, which attracts unskilled guest workers, and hardly creates jobs for skilled Jordanians. Therefore, engineers are worse hit by the depression than most.
The fact that many engineers are unemployed can be easily explained by the dearth of high-value-added production and products, which require highly skilled workers, especially engineers, to produce. Without demand from the private sector, the engineers’ human capital and its potential will be wasted further.
To move into high-value-added production, the government must play a major, and necessary, role. It must support new projects, entrepreneurship, startups, and innovation, activities that are currently relegated to programs that are funded by foreign aid.
The government must also set the direction of change and use all the tools available to drive the economy toward greater productivity, innovation, R&D, value-added, and resilience.
It should borrow and assume more debt to grow product complexity in a mission-driven approach, and use all fiscal and monetary tools to drive and cause the change that puts the engineers to work.
Their employment generates an inflow of remittances to the Jordanian economy. However, employment and remittances vacillate with the rise and fall in oil prices, thus almost making Jordan an oil-dependent economy without oil.
Unemployment among engineers, at 32 percent, is higher than the national unemployment rate of 22.3 percent. Architectural engineering suffers the highest unemployment rate (38 percent), followed by civil engineering (34 percent), and electrical and mechanical engineering (31 percent and 30 percent respectively).
Not only is the government in Jordan unable to affect the demand for engineers overseas, but it is also, due to cuts in capital expenditures, hardly hiring locally. Also, the private sector has suffered what may be the longest economic depression in recorded history. And, the economy in Jordan has not been able to boost productivity since 1988 — the real income per capita in Jordan remains lower than that of 34 years ago.
This also means that production is a low value-added, and requires little to no skill. In addition, Jordan suffers from growing joblessness because the bulk of economic growth is basically in the construction sector, which attracts unskilled guest workers, and hardly creates jobs for skilled Jordanians. Therefore, engineers are worse hit by the depression than most.
The fact that many engineers are unemployed can be easily explained by the dearth of high-value-added production and products, which require highly skilled workers, especially engineers, to produce. Without demand from the private sector, the engineers’ human capital and its potential will be wasted further.
To move into high-value-added production, the government must play a major, and necessary, role. It must support new projects, entrepreneurship, startups, and innovation, activities that are currently relegated to programs that are funded by foreign aid.
The government must also set the direction of change and use all the tools available to drive the economy toward greater productivity, innovation, R&D, value-added, and resilience.
It should borrow and assume more debt to grow product complexity in a mission-driven approach, and use all fiscal and monetary tools to drive and cause the change that puts the engineers to work.
Published on Jordan News:
https://www.jordannews.jo/Section-36/Opinion/Not-hiring-engineers-23301
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