Structural Transformation and Employment Trends in Jordan

Authors

Omar M. alshrydeh, PhD. Program, Department of Business Economics, Faculty of Business, University of Jordan, JordanFollow
Taleb M. Warrad, Department of Business Economics, Faculty of Business Administration, University of Jordan, JordanFollow

DOI

10.35552/0247.39.2.2341

Abstract

Historical experience suggests that improving employment and working conditions is not achievable without structural transformations in the economy. Through these transformations, surplus labor in informal sectors and activities can be moved to higher-productivity economic activities. In this research paper, the trends in the relationship between structural transformation and employment in Jordan during the period 1990-2022 were analyzed. The research highlights several key findings from the analysis. First, it identifies long-term equilibrium relationships between structural transformation and employment fluctuations. Secondly, the main research variable total production (LY) is statistically significant in all models, but it varied in terms of magnitude and direction. Its impact was positive in the agricultural and industrial models, with an elasticity of approximately 2.2%, and 0.48% respectively. In the services sector, the coefficient of total production was negative 1.4%. Thirdly, the results show that the impact of financial crises, Arab sprig, and COVID-19 on the role of structural transformation in employment was negative as indicated by the significant and negative dummy coefficients.

Recommended Citation

alshrydeh, Omar M. and Warrad, Taleb M. (2025) "Structural Transformation and Employment Trends in Jordan," An-Najah University Journal for Research - B (Humanities): Vol. 39: Iss. 2, Article 6.
DOI: 10.35552/0247.39.2.2341
Available at: https://digitalcommons.aaru.edu.jo/anujr_b/vol39/iss2/6