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Jordan

Comprehensive Country Overview

Explore the geography, history, and socio-economic factors shaping Jordan

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Country description

Jordan is located in the heart of the Middle East, bordered by Syria, Iraq, Saudi Arabia, Israel, and the Palestinian West Bank. Despite its relatively small size, the country boasts diverse landscapes. The Jordan Valley is a fertile rift valley containing the Jordan River and the Dead Sea, which is the lowest point on Earth. The Eastern Desert is an arid plateau covering most of the country, while the highland regions are mountainous areas in the northwest, featuring fertile lands and major cities. The climate is predominantly arid or semi-arid, with hot summers and mild winters, and regional variations in precipitation.

The territory of Jordan has been inhabited for millennia and was home to flourishing civilizations like the Nabataeans, famed for the stunning rock-cut city of Petra. For centuries, Jordan was part of the Ottoman Empire. After World War I, Jordan fell under British Mandate rule, gaining independence in 1946. Today, Jordan is a constitutional monarchy, with King Abdullah II serving as the current head of state.

Jordan has a predominantly Arab population, with a significant Palestinian refugee presence. Islam is the major religion. The country is classified as an upper-middle-income country by the World Bank. Its economy relies on services, industry, and tourism. Key industries include phosphate mining, pharmaceuticals, and information technology. Jordan plays an important diplomatic role in the Middle East, often acting as a mediator and promoting regional stability. However, the country faces challenges such as unemployment, water scarcity, and the impact of regional conflicts.

Workforce description

Jordan's workforce is characterized by a low labor participation rate of about 40%, indicating a significant portion of the population not actively working or seeking jobs. There is a notable gender imbalance in the workforce, with male participation significantly higher than female participation. The country also grapples with severe youth unemployment, with the rate standing at 40.6% in 2019, and particularly high for young women at 59%.

In terms of skill levels, around 62% of Jordanian workers lack secondary education, suggesting a predominantly low-skilled workforce. There is also a mismatch between available skills and market needs, as evidenced by the high unemployment rate among university graduates (24.5%), indicating a lack of in-demand, higher-level skills.

The service sector dominates the Jordanian workforce, employing over 80% of workers in fields such as education, trade, healthcare, and public administration. The public sector also employs a significant portion of the workforce, accounting for about a third of employed men and half of employed women. In contrast, industry and agriculture play a minor role, contributing to about 17.7% and 2% of employment respectively. These sectors are largely filled by migrant workers.

Additional factors impacting the Jordanian workforce include the large refugee population, which puts added pressure on the labor market, and a sizable informal sector, which is harder to measure statistically.

Cultural norms impacting employment

In Jordan, family is the cornerstone of society, often taking precedence over work commitments, especially for women. Traditional 9-to-5 schedules might not be strictly applied, with businesses commonly accommodating personal and family needs in work timings. The line between work and personal life can be fluid, with some out-of-hours communication expected.

Building strong interpersonal relationships is a priority before business discussions commence, with time invested in getting to know colleagues. Jordanians can favor indirect communication to preserve harmony and avoid direct confrontation, so reading between the lines is often necessary. Direct criticism, especially in public, may not be well-received, and finding more tactful ways to deliver feedback is preferred.

Hierarchy is deeply ingrained in Jordanian culture, with deference granted to those with seniority or authority titles. Decisions frequently flow from the top down, with more centralized decision-making styles than typically seen in the West. Use of formal titles and surnames shows respect, and it's best to avoid addressing senior colleagues by their first names unless specifically invited to do so.

Important Considerations

The concept of "Wasta," referring to connections and influence, is important in Jordan. Who you know can be as important as what you know for career advancement. Hospitality is a hallmark of Jordanian culture, so expect tea, coffee, and invitations to social events within the workplace.

Key industries and employment sectors

The services sector is the backbone of the economy, accounting for approximately 70% of GDP. This sector includes tourism, finance & insurance, and public administration. Jordan attracts tourists with historic sites and strong medical tourism. The finance and insurance sector is well-developed and supports economic activity, while the government remains a significant employer.

The manufacturing sector, while smaller than services, is substantial and includes mining and quarrying, pharmaceuticals, and textile & apparel. Phosphate and potash are primary natural resources and major exports. Jordan has carved a niche in generic pharmaceuticals, exporting widely. The textile and apparel sector is labor-intensive, with garment manufacturing being a notable export.

The ICT sector is growing, fueled by a young, tech-savvy population. Areas like software development and business process outsourcing are gaining traction.

Emerging Sectors with Potential

Renewable energy is an emerging sector with potential. With plentiful sunshine, Jordan is investing in solar energy. This sector has the potential to reduce reliance on imported energy and create jobs. Creative industries such as filmmaking, design, and gaming hold promise but are still in their early stages. The healthcare sector is also developing beyond medical tourism, increasing employment opportunities.

A significant portion of the workforce is in the informal sector, making accurate employment figures by industry difficult to gauge. Refugees, primarily Syrian, form a part of the workforce, particularly in agriculture and construction.

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