Jordanian Labour Market policies

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1 Jordanian Labour Market policies Third Union for the Mediterranean Ministerial Conference on Employment and Labour Jordan, 26 and 27 September 2016 Dr. Raghda Faouri Director of policies and International relations Ministry of labour 1

2 Content Labour market indicators National Employment strategy Coherence between Economic Policies Poverty alleviation (satellite units) ALMP and supporting institutions Migrant Policies Syrian Crisis. Other socio-economic labour market related policies. 2

3 Labour market Indicators Unemployment rates Unemployment rates 10 years ago.. 3

4 Labour Market Indicators Unemployed 2015 )209,569( Labour Force 2015 )1,607,599( Employed 2015 )1,398,030( 50.4% Tawjihi دون and توج ه فما below. 63.9% 9.3% دبلوم متوسط Diploma 9.7% 60.0% 40.3% 40.0% 20.0% Bachelor بكالور وس فأعلى and Above 0.0% 26.5% 0.0% 20.0%40.0%60.0%80.0% 0.31 إناث Females 16.0% 0.69 ذكور Males 84.0% 80% 60% 40% 20% 0% 0% 20% 40% 60% 80% 100% Dos, NCHRD

5 Economic Growth and Created Jobs Economic Growth Jobs 3.1% , % , % , % , % , % , % , % 6.0% 4.0% 2.0% 0.0% - 20,000 40,000 60,000 80, ,000 7of 28 New entrants to the labour market are estimated at 120, 000 per annum. Dos and CBJ

6 Economic growth and Employment Despite variation, the employment output elasticity is Employment-output elasticity, , (employment lagged by one year, two year moving average). 0.0 Employment Growth of Jordanians Economic Growth Rate Calculated based On Dos, CBJ and NCHRD NES review report

7 Vocational and Technical Training Job Polarization, EU % changes in labor supply/skills upgrade (ISCED) and labor demand for skills/tasks (ISCO) (Maselli, 2012) Supply Demand 160, , , ,000 80,000 60,000 40,000 20,000 Net Employment Creation by Sex and Nationality Similarly the middle is missing in Jordan 0 Low-Skilled Medium-Skilled Hgh-Skilled J Non-J Male Female The Middles is missing NES review report

8 National Employment Strategy NES has been launched under the patronage of His Majesty in 2012, to concentrate on Employment policies, enhancing the Standard of livings and increase employability, wages and Correct mismatch and enhance SMES Restructure the Economy and increase productivity productivity. Steering committee and technical ones have been established Reduce unemploym ent NES Horizons

9 NES Policies and Economic Growth آgrowth NES pillars that spur Economic Spur investment Economic empowerment for females Economic growth Human capital Enhance business environment

10 Prioritizing sectors: Where to concentrate :value added, trade and/or employment L e v e l o f s k i l l s The size of the bubble indicts the sector s share of employment 22/31 International trade NES report

11 335, , , , , , ,045 MOL Migrant Workers and Replacement policies 340,000 Legal Migrant workers 330, , , , , , , , ,000 More than 60% are Egyptians.

12 Jordanians Vs. Migrants.. partial replacement is the tool Legal Migrants بكالور وس فأعلى 26% دبلوم متوسط 4% 315,045 Employed 1,398,030 توج ه فما دون 64% توج ه فما دون 96% Illegal Migrants بكالور وس فأكثر 0% **300,000 توج ه فما دون 51% دبلوم متوسط 10% بكالور وس فأعلى 40% توج ه فما دون 96% unemployed 209,569 دبلوم متوسط 9% DOS, MOL

13 Thousands Labour market indicators , Training and replacement Correct Mismatch Jordanians المشتغلون Employed االردن ون المتعطلون Unemployed االردن ون Jordanians العمالة Migrants الوافدة بكالوريوس فأعلى دبلوم متوسط توجيهي فما دون Replacement policies As according to NCHRD study, the training multiplier on the economy is higher for Jordanians than migrants. How?? Vocational and technical training

14 Created Jobs and Demand the Evidence Created Jobs as according to qualifications بكالور وس فأعلى دبلوم تلمذه مهن ة بكالور وس فأعلى دبلوم تلمذه مهن ة ثانوي فما دون ثانوي فما دون demand Dos and NCHRD

15 ALMP and Employment Tool Matching Demand and supply Employment fairs On Job Training Micro finance Self Employment Employme nt Tools Satellite Units Vocational and technical Training and Employment programs 15

16 MOL and supporting institutions VTC Training عدد الخر ج ن عدد الملتحق ن المنتظم ن Trainees Graduates DEF indicators] NET_ Construction sector عدد الملتحق ن Trainees بالتدر ب ف قطاع عدد المشتغل ن workers بفرص time عمل Full دائمة 2014 االنشاءات 2015 عدد المشار ع الممولة Projects عدد فرص العمل المولدة Jobs created % of the beneficiaries are females MOL, VTC, NET, DEF

17 Investment policies: Support production and SMEs Satellite units To reach 30 by E-TVET Fund indicators Amount (000) JDs ق مة التمو ل )مل ون د نار ) عدد المشار ع الممولة Projects

18 Satellite Units 18

19 MoL Procedures toward mitigating the impact f the crisis Finalizing Jordan Compact Finalizing the needed Action plan for Jordan compact. Finalizing the Rule of origin (RoO) instructions to encourage investments. The Target for 2016 around 50,000 work permits. Encouraging Employment intensive programs (EIP) (KfW, ILO, GIZ) to create more jobs. Employment promotion program with GIZ. Stop recruitment of new Migrants. GoJ announced two Grace periods for issuing work permits for Syrians. (Apr-july, July-Oct). Contact unions and cooperatives to issue work permits in agriculture and construction sectors. Relaxed inspection campaigns. Daily work permits are increasing sharply. 19

20 14,531 12,262 5,883 5,328 4,543 3,481 3,076 2,451 2,101 2,067 1,782 1,643 1,555 1,377 1,146 1,102 1,093 1,008 84,067 The Distribution of Registered Syrians on UNHCR data base Education level (18 years and above) profession 515,887 Refugees have reported their educational status 79,500 Refugees have reported having no education 66,951 Refugees have not provided any data 233,500 Adults above and equal age ,915 Adults reported on the current or previous occupation 62,585 Adults reported no occupation 60,000 50,000 40,000 30,000 20,000 10, of 28 ACCOUNTANTS ELECTRONICS SECONDARY MOTOR VEHICLE BLACKSMITHS AND PRIMARY EDUCATION BAKERS, PASTRY - HAIRDRESSERS, BARB COOKS CARPENTERS AND TAILORS, DRESSMAKE GENERAL MANAGERS SALES SALESPERSONS CAR, TAXI AND VAN FARMERS (CROP AND BUILDERS FARM-HANDS & HOUSEKEEPERS UNHCR

21 Daily work permits: towards 200,

22 MoL and ILO

23 Other Socio-Economic Labour market related policies Minimum wage Tripartite committee to revise the minimum wage taking into consideration: Standard of livings, inflation rate, competiveness of the economy, cost of production..etc. Child labour Enforce the labour law against child labour Conduct a survey for the child labour in Jordan. Anti-Human trafficking detailed inspection Enforce law 23

24 Social Dialogue: Labour Relations االضرابات عقود العمل الجماع ة النزاعات العمال ة

25 Thank you Q & A 25

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