Creating more and better jobs through trade and investment in Jordan

© Treasury for Conferences Equipment & Events Management, Jordan/ILO

© Treasury for Conferences Equipment & Events Management, Jordan/ILO

AMMAN, Jordan (News) – The Policy Working Group of the EU-funded Mainstreaming Employment into Trade and Investment (METI) project gathered for the fourth time with government officials, and representatives from workers’ and employers’ organisations as well as national specialised agencies and the private sector in Amman to advance the creation of more and better jobs through trade and investment.

The meeting was chaired by Dr Ghaida Abdallat, Scientific Researcher at the Economic and Social Council (ESC). In her opening remarks, Dr Abdallat highlighted the relevance of the METI project for Jordan and how it is aligned to the national policy context, in particular the employment objectives of the Economic Modernization Vision launched by His Majesty King Abdullah II in 2022. She further elaborated on the important contribution of the ESC to the Vision, and how the METI project can support its implementation.

Positive employment and trade impact but some concerns

The first part of the meeting focussed on the employment and trade impact assessment of the Wadi Al Arab Water System II project. The study provided an insightful analysis of the direct, indirect and induced employment effects, underscoring the different employment outcomes in terms of wages, contract type, social protection coverage, among other spheres. The results were disaggregated by gender, age and skills-level of the workers, thereby shedding light on the nuanced impacts of such large-scale infrastructure investments on decent work, including the remuneration and social benefits.

The members of the Policy Working Group engaged in a rich discussion and provided further insights to contextualise the findings. The session concluded by identifying actions that can mitigate the decent work deficits in future investments and guide future actions towards improving employment conditions in the country’s construction sector. The study will be published in September 2024.

Key findings

• The investment project created about 1,134 direct jobs and an additional 5,425 indirect and induced jobs across various sectors
• Almost half of the jobs created are for young workers aged 18-29 years
• Only 4 per cent of the jobs were for women

From problem statements to concrete proposals for more and better jobs in Jordan’s engineering sector

During the second part of the meeting, members of the working group discussed the first findings of the value chain analysis in the engineering products and services sector. Ms Hebah Aldaoud and Mr Hamzah Kamal, Evolve Management Consulting, presented the key characteristics of the sector and the findings of the study. Also this study will be published in September 2024.

Based on these inputs and guided by Dr Junichi Mori, ILO consultant, participants then embarked on a forward-looking journey to explore business capability gaps, mismatches in the skills demand and supply of the engineering sector, and the role of education and training providers. As a starting point, participants formulated aspirational vision statements and then developed a potential path forwards this vision in a series of group work exercises. The Technical and Policy Foresight Workshop followed the Skills for Trade and Economic Diversification (STED) methodology which provides strategic guidance for the integration of skills development in sectoral policies.

At the end of day 2, the participants developed and presented nine concrete proposals on how to advance the Jordanian engineering sector to create more and better jobs. The proposals include targeted training courses for exporters, a mentoring system for university students, and a twinning system between Jordanian and foreign companies. Over the coming months, the proposals will be further elaborated and feed into the development of an implementation roadmap.

Key findings

• The share of young workers in the sector is approximately 12 per cent ,and only 9 per cent of the workers are women
• The sector relies heavily on imported materials and components
• Financial constraints prevent investment in advanced manufacturing technologies
• Inadequate training and certification for installation and maintenance

METI is a four-year programme, funded by the European Union and implemented by the International Labour Organization. It aims to support policymakers in the Southern Mediterranean region to better incorporate employment consideration into trade and investment policies. This will support the design and implementation of trade and investment interventions that optimize the quantity and quality of employment creation in the region. The programme is also facilitating the operationalization of the European Fund for Sustainable Development Plus (EFSD+) which aims to support inclusive and sustainable development of the region.