The Department of Statistics (DoS) has released its semi-annual report on newly created jobs in Jordan during the second half of 2022. This report, both concise and significant, holds comparable importance to any economic analysis of the country. A brief examination of the press release and its analysis underscores the document's value.
During challenging economic periods, women emerge as the favoured
workforce
In the latter half of 2022, there was a net increase of 3,062
jobs (the number of jobs created minus the number of jobs lost) compared to the
first half of the year. This indicates a modest improvement in job creation
within the Kingdom.
The majority of newly created jobs, accounting for 71.1 percent, were awarded
to males, while the remaining 28.9 percent went to females. Surprisingly, the
net increase in newly created jobs for males during the second half of 2022
decreased by 3,178 jobs, while females experienced an increase of 6,240 jobs
compared to the first half of the same year.
While some may interpret this as a positive development,
especially considering the historically low participation rate of women in the
labor force (which has ranged between 12 and 14 percent over the past three
decades), it raises a potential hypothesis. It suggests that employers might be
hiring women predominantly during economic downturns to exploit the wage gap,
paying them less than their male counterparts and consequently reducing overall
wage expenses.
The hypothesis that women become preferred employees during challenging
economic times due to wage discrimination gains further support from the
following observations: the largest share of net newly created jobs is
allocated to the 20-29 age group, which typically constitutes a lower-wage
demographic. Moreover, the only demographic experiencing job losses is the 40+
age group, considered a higher-wage category. This suggests a potential shift
in the job market from high-wage earners to lower-wage groups.
The bias toward hiring more women is particularly evident within the educated
demographic. Among individuals with a bachelor's degree or higher, the
percentage of newly created jobs for males is 39.2%, compared to 63.7% for
females. This data reinforces the notion that women attain more credentials
than men to compete for the same jobs, making them the more educated group.
Employers, for various reasons, seem to prefer hiring them when economic growth
is sluggish, potentially to reduce overall wage expenses.
Is it possible that women shifted towards the public sector? No, as the public
sector accounted for only one-fifth of the net newly created jobs.
Consequently, the discrimination and resulting demand appear to be
predominantly within the private sector. From an economic policy perspective,
this emphasizes the need for the government to address the imbalance in the
larger private sector before actively promoting the transition of more females
into this sector.
Local economic development
What about local economic development? During the second half of
2022, over 60 percent of the total net jobs were created in Amman while only
0.2 percent of the net new jobs were created in Ma’an.
Is Jordan a service economy?
Retail trade and repair of motor vehicles and motorcycles constituted the largest category within the net new jobs, accounting for almost 40 percent of the total. Specialists received the highest share, comprising 33.2 percent of the net new jobs, followed by sales and service workers. This trend indicates that Jordan is evolving into a service-based economy. The question arises: do policymakers intend for it to remain this way? It is a question worth exploring.
Quitting and foreigners
Why do Jordanians quit their jobs? The largest percentage (54 percent) underscored inappropriate working conditions and the nature of the job, including factors such as the distance between home and workplace and the long working hours. Note that in another survey, 50 percent of surveyed women refused job opportunities because of transport.
Is it possible that non-Jordanians are competing for the net new jobs and taking them away from Jordanians, as some may claim? The numbers reveal that 88.6 percent of the total net jobs went to Jordanians in the second half, reflecting an improvement over the percentage (87.9 percent) observed in the first half.
For policymakers and pundits, such a report, based on a survey of 50,000 households, may provide a treasure trove of indicators of where policy should operate. Kudos to the Department of Statistics for such transparent and precise effort and outcome.
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