The Jordan Strategy Forum has issued a policy paper titled “Human Capital: A Goal and a Tool for Inclusive Growth and Sustainable Development,” highlighting that human capital is one of the key drivers of economic growth, poverty reduction, and productivity enhancement.
The paper noted that investment in education, healthcare, workplace learning, and employment not only improves individual well-being, but also serves as a fundamental pillar for boosting the competitiveness of the national economy and supporting inclusive and sustainable growth.
Based on World Bank estimates, the paper stated that human capital accounts for around 60% of income growth among the poorest 20% of the global population and explains nearly 60% of the variation in GDP per capita across countries. It also indicated that a 10% improvement in adult survival rates could raise income levels by up to 7%.
The Forum emphasized the direct relationship between human capital and female labor force participation, noting World Bank data showing that women with university education participate in the labor market at rates approximately 24 percentage points higher than those without higher education globally.
The paper also discussed the enhanced Human Capital Index (HCI+), launched by the World Bank on 12 February 2026, which expands on the traditional Human Capital Index by incorporating employment and workplace learning in addition to health and education, reflecting the cumulative nature of human capital over time.
According to the report, Jordan scored 170 points on the index, ranking seventh in the Arab world and 97th globally, placing it in the lower-middle performance category.
The findings showed that Jordan performs relatively well in health, with outcomes close to the best-performing Arab countries and, to some extent, leading global performers, indicating a solid healthcare infrastructure. Jordan also ranked in the mid-range for education, reflecting reasonable access and educational attainment, though still trailing top regional and global performers.
However, the report identified employment as Jordan’s most significant challenge, citing low economic participation rates and limited availability of quality jobs. While Jordan has established a solid foundation in health and education, the key challenge remains translating this progress into productive employment opportunities.
The paper noted that simulation results by the World Bank suggest significant room for improvement. Every 10-point increase in Jordan’s score through targeted reforms could raise expected future income by approximately 10%.
The Forum highlighted employment as the weakest pillar, particularly youth employment. It added that closing the 40-point gender gap in human capital between men and women could raise Jordan’s overall score from 170 to 188 points, potentially increasing future income by around 18%.
The report also found that increasing expected years of schooling in Jordan from 11.6 to 13 years could boost long-term productivity and expected income by approximately 10.3%. Improving education quality, measured through harmonized learning outcomes from 392 to 600 points, could increase expected income by as much as 46.5% in the long term.
The Forum recommended prioritizing employment reforms by aligning education with labor market needs, expanding vocational training, easing the transition from education to work, increasing women’s workforce participation through affordable childcare, better transportation, flexible work arrangements, and equal opportunity policies.
It also called for improving education outcomes through teacher training, curriculum development, stronger analytical and critical thinking skills, expansion in high-demand disciplines such as science, technology, and digital skills, and deeper collaboration between universities and productive sectors.
The Forum concluded that Jordan possesses a strong human capital base capable of delivering greater development gains if employment outcomes—especially for women and youth—are improved through sustained targeted reforms.
