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    03-Jul-2025

Digital Employment: A supporting path for Jordan's labor market - By Hamad Kasasbeh, The Jordan Times

 

 

In light of the increasing challenges facing Jordan's labor market, it has become necessary to seriously question the adequacy of the traditional employment model and its ability to absorb the ambitions of youth and reduce unemployment. Accelerated demographic growth, coupled with a relative slowdown in sectoral expansion, places the country before a strategic choice: either to stick with traditional employment patterns or to consciously embrace a digital economy that opens new horizons for employment and innovation.
 
The digital economy is not presented as an alternative to existing productive and service sectors, but rather as a complementary and parallel path that reshapes the relationship between efficiency and opportunity. Digital employment, which includes online work in fields such as programming, marketing, design, and digital logistics, has become one of the flexible solutions that governments around the world are adopting to expand economic participation without the need for traditional public sector expansions or massive investments in physical infrastructure.
 
International experiences confirm the effectiveness of this approach. In the Philippines, the digital outsourcing economy generates over $30 billion annually and employs more than 1.5 million people. India has developed a special institutional and legislative framework to integrate this type of work into its national economy. In Egypt, the "Our Digital Future" program, launched in cooperation with the World Bank, trained youth in digital skills and connected them to global freelancing platforms, enabling thousands to improve their incomes and opportunities without leaving their governorates. Morocco has also seen a significant rise in IT exports thanks to support for digital startups.
 
Jordan is not far from this context. The government, with support from international partners, has launched initiatives such as the "Youth, Technology and Jobs" project, which aims to train young people in the governorates on digital economy skills. Platforms like B.O.T have also begun creating real digital income opportunities for groups that are difficult to integrate into the traditional labor market.
 
Among the practical models that embody flexible digital employment are ride-hailing and delivery applications like Uber and Careem, which act as intermediaries between service providers and consumers without direct involvement from traditional employers. This type of economy, known as the gig economy, enables broad segments of youth, especially those without advanced technical skills, to quickly enter the labor market and generate independent income using their own resources such as vehicles and smartphones. International experiences—in the United States, Mexico, and Egypt—have shown that this type of employment helps absorb part of temporary unemployment and provides operational flexibility in times of market fluctuations, though it requires clear legal frameworks and basic social protection for workers.
 
Despite these positive indicators, the contribution of digital employment to Jordan's labor structure remains limited. This is due to the absence of a unified regulatory umbrella, a lack of public awareness about the seriousness and potential of this work model, and limited institutional links between market-demanded digital skills and available educational and employment platforms.
 
Economically, digital employment offers multiple benefits. It reduces entry costs to the labor market, increases efficiency in time and resource use, and enhances the adaptability of the workforce to changing market dynamics. According to World Bank estimates, improving the institutional framework for this type of employment could help reduce youth unemployment by 3 per cent to 5 per cent in a relatively short period if it is integrated into national employment policies.
 
Digital employment does not replace traditional sectors, but rather complements them. It can play a key role in expanding economic participation, especially for women and youth in peripheral areas who face challenges in accessing economic activities concentrated in major cities. To ensure the effectiveness of this path, a clear regulatory framework is recommended, including a trustworthy national platform for digital work, incentives to encourage youth to acquire digital skills, and integration of this employment model into vocational education and labor policies.
 
Ultimately, it appears that Jordan's current economic growth alone may not be sufficient to create enough jobs in traditional sectors to significantly reduce unemployment. Here, digital employment emerges as a complementary path that ensures broader inclusion, especially for women and youth, and connects efficiency with opportunity in a more equitable and flexible environment.
 

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