Support programs help clothing sector retain employees

1. Clothing Sector Razan
A storefront in Amman on July 16, 2021. (File photo: Ameer Khalifeh/Jordan News)
AMMAN — The support programs extended by the Social Security Corporation (SSC) to the clothing, shoe, and textile sector helped it retain its workers despite the negative repercussions the COVID-19 pandemic had on it, Asaad Al-Qawasmi, who represents the clothing sector at the Jordan Chamber of Commerce, told Jordan News.اضافة اعلان

The clothing sector in Jordan is still going through tough times due to the pandemic, he said, but it cannot bring itself to get rid of its workers, even though more than 53,000 people work in the field.

Qawasmi stressed the need to continue to include the clothing sector in the support programs provided by SSC, making special mention of “Estidama”, which encourages shops owners to continue to expand their businesses. If that is going to happen, he said, the sector cannot afford to dismiss labor force.

If “workers do not lose their jobs, unemployment rates will be maintained”, instead of going up, he said, which is an added bonus.

Qawasmi said that the government should support the sector to enable it to withstand the difficulties it faces, especially the significant decline in the purchasing power of the population.

He also urged the concerned authorities “to conduct a quick and genuine review of the current policy to address its loopholes, and to lift tax exemptions on post parcels, to place an even tax burden on all types of trade”, referring to the online shopping that is being blamed for the loss of a large portion of the consumer market, particularly among the younger generation.

According to Qawasmi, "Estidama" provided support by paying part of the salaries of people in the clothing sector, affected by the decline in commercial activity, the high operating costs and the decline in imports.

President of the Garment Traders Association Sultan Allan said that the reason the clothing sector hung on to its workers during the pandemic is the defense order that banned employers from laying off employees, predicting that “if the government decides to lift defense orders next year, many employees will lose their jobs”.

The sector is going through a dire situation, he said, adding that retail sales dropped by 40 percent in 2021, compared to 2019, “due to the fact that people are saving their money and that citizens’ priorities changed in view of the pandemic”.

“We witnessed a significant drop in our imports, too; they decreased from JD237 million in 2019 to JD195 million in 2021,” Allan said.

The majority of Jordan's imports of clothing and shoes are from Turkey and China, but also from some Arab, European, and Asian countries.

Even “White Friday” sales were below ambition, Allan said, stressing that the markets witnessed a 30–50 percent decline "despite the prior preparations and commercial advertisements”.

Merchants were waiting for White Friday to pay their obligations and offset some of the losses they suffered as a result of the pandemic, Allan said, but “this did not happen”.

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