World Bank: Half of Jordan’s economy is idle, and 30% of growth hinges on women’s participation

World Bank: Half of Jordan’s economy is idle, and 30% of growth hinges on women’s participation
World Bank: Half of Jordan’s economy is idle, and 30% of growth hinges on women’s participation
In its latest regional report, the World Bank highlighted Jordan’s chronic dilemma: steady economic growth that leaves half of its productive capacity untapped.اضافة اعلان

The report, released this week under the title “Jobs and Women: Untapped Potential and Unrealized Growth,” notes that Jordan is on a path of modest growth, with GDP rising slightly from 2.5% in 2024 to 2.6% in 2025, supported by industrial recovery and a relative rise in tourism.

Yet, this improvement does not extend to women’s labor participation, which remains the lowest in the region despite women’s strong educational attainment. The report stresses: increasing women’s participation in the labor force could boost per capita GDP in some countries by as much as 30% — a gain unmatched in any other part of the world.

Education-to-work gap

Jordan is described as one of the Arab economies with highly qualified women unable to find economic opportunities. While women’s academic achievements are notable, their labor force participation is weak. This gap, the report explains, stems not only from limited job opportunities but also from the interplay of social norms, legal frameworks, and a private sector reluctant to absorb female talent.

Qualified women often prefer public sector jobs for their stability, leaving the private sector stagnant in attracting new skills or developing flexible workplaces.

Missed economic gains

According to the World Bank, raising Jordanian women’s labor participation could boost per capita GDP by 20–30%, among the highest potential gains in the Middle East and North Africa. The report calls this an “economic opportunity wasted,” especially in a country facing demographic pressures and a slowdown in job creation.

Social and legal barriers

The analysis notes that social norms still impose informal limits, with prevailing beliefs that a woman’s primary role is domestic, even among educated groups.

Legal shortcomings compound the issue — including wage inequality, weak protection against discrimination and harassment, poor public transport, and costly childcare. These barriers create what the report calls a “low participation trap”: fewer women in the workforce reduces demand for their skills, reinforcing stereotypes about their economic role.

Regional comparisons

While Jordan stagnates, Saudi Arabia is cited as an example of rapid transformation. Saudi women’s labor force participation rose from around 20% to 34% in just a decade, thanks to legal reforms and workplace initiatives. In contrast, Jordan, Morocco, and Egypt lag behind, with policy frameworks failing to keep pace with social and educational change.

Comprehensive reform needed

The World Bank stresses that “partial reform is not enough.” Addressing women’s participation requires a holistic approach spanning economic policies, labor markets, social legislation, and education systems.

Equal pay: Enforcing pay equity for work of equal value is key to restoring women’s trust in the labor market.

Transport infrastructure: Developing affordable, safe public transport is described not as a service project but as a direct employment policy.

Flexible work: Expanding part-time, remote, and flexible hours in the private sector could lift participation, as Gulf experiences have shown.

Childcare: Access to childcare is framed as a right and a crucial factor in reducing female workforce dropout after childbirth.

The choice ahead

The report concludes bluntly: “The region can no longer afford to leave half its talent out of the labor market.”

Jordan, it says, stands at a crossroads: either continue draining half of its productive potential or make women’s empowerment the central driver of its economic future.