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  • POLICIES FOR HUMAN CAPITAL DEVELOPMENT IN JORDAN

POLICIES FOR HUMAN CAPITAL DEVELOPMENT IN JORDAN

An ETF Torino Process assessment

Jordan
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Torino Process reports
Jahr
2020
Full report

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Executive summary

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Executive summary

This European Training Foundation (ETF) assessment was prepared in 2020 on the basis of a national report produced by the national authorities of Jordan with the help of a standardised framework questionnaire (the National Reporting Framework – NRF).

The assessment process included an extensive phase of desk research based on information provided by Jordan in its Torino Process national report[1] National report of Jordan, prepared in the framework of the Torino Process, 2020. Accessible at https://openspace.etf.europa.eu/trp/torino-process-2018-2020-jordan-national-report
and the preparation of an issues paper with an overview of themes for discussion in the assessment. These efforts were then finalised in consultations within the ETF.

Jordan is a country of 10 million inhabitants (10.1 million in 2019) with limited natural resources and a high degree of dependence on foreign assistance. In only a few years since 2015, the population of Jordan has increased by 9% because of a massive influx of refugees from neighbouring countries.

The population of Jordan is young. A sizeable share of the population (52.9% in 2019) is below the age of 25, and youth aged 15–24 account for 19.4% of the total population. However, a considerable proportion of these young people (38.1% in 2017) are not in employment, education or training. Another challenge for the economy is that only 34.3% of the working-age population is economically active, whereas 19.1% of them were unemployed in 2019.

Demographic and migration developments create economic pressures that have a negative impact on the country's economic development. Political instability in the region and its associated refugee flows are among the most significant factors to have an impact on the society and economy. This is because they complicate the pressing task of catering to the needs of a large, increasingly diverse group of vulnerable people who require attention, support, and sustainable policy solutions. The group also includes people living below the poverty line, who account for 16% of the Jordanian population. At the same time the need for employment among Jordanians, especially among young people, is increasing at a rate that exceeds the supply of jobs.

Jordan has put in place a range of strategies for social and economic development in all sectors under the responsibility of its government. The National Employment Strategy (NES), for example, commits to improving the standard of living for Jordanians through increased employment, wages and benefits and higher productivity. To this end, education and training providers are called to graduate a 'skilled and motivated labour force, armed with employable skills and technical know-how in demand by the labour market'. The Council of Ministers has also instigated a comprehensive implementation/action plan and an implementation team for the NES under the leadership of the Ministry of Labour, while the VET-related effort mostly focuses on governance-related reforms that include changes to the composition of the Employment, Technical and Vocational Education and Training (ETVET) board and the inclusion of TVET providers in the system of accreditation under the responsibility of the Accreditation and Quality Assurance Commission for Higher Education (AQACHEI). Broadly, the goal of the governance-related reforms is to raise the attractiveness of VET for Jordanians and boost work-based learning.

The National E-TVET Strategy 2014–2020, which links to the broader human capital development (HCD) commitments in the NES, covers five pillars: governance; the labour market relevance of education and training; the inclusion of women, youth, and people with disabilities; better monitoring systems; and sustainable funding for TVET.

At the time of this assessment, the strategic goals have been translated into several long-term reform undertakings. One of them is the development of the National Qualifications Framework or NQF (TVET qualification levels extend from level 2 to level 6 of the new 10-level NQF), while another is the establishment of national sector skills councils (SSCs) with the support of international donors (GIZ, ILO, EU and EBRD). The authorities have also embarked on building a labour market information system (LMIS) with the purpose of informing strategic decision-making in TVET. However, the most important governance-related change is the establishment of the Technical and Vocational Skills Development Commission (TVSD Commission), which will replace the ETVET Council. The TVSD Commission will have its own council headed by the Minister for Labour and most of the council's members (8 of 14) will come from the private sector.

All HCD priorities and commitments are clearly dependent on a robust contribution of TVET to an ambitious national agenda for prosperity and economic advancement, and they are all based on an expectation that TVET can become a relevant, accessible and responsive segment of the country's skills development system. However, a number of challenges remain. Some are inherent to the TVET system, while others are external socio-demographic or political factors that bring considerable pressure to bear on the adjustment and modernisation of approaches to human capital development in Jordan, particularly in relation to TVET.

Challenges for human capital development

Some of the more prominent challenges are posed by migrant and refugee flows, the limited continuity of (and progress with) reforms in education, and more recently the combined impact of school closures and the Covid-19 pandemic.

For years now, Jordan has been experiencing a tremendous influx of working-age people. In 2017, the total number of immigrants and refugees in Jordan was over 3.2 million, which was about one-third of the total population that year (10.05 million) and represented a 19% increase compared to 2010. Owing to its proximity to areas in turmoil, Jordan has been a traditional destination for refugees, mostly from Palestine, Iraq and Syria.

In this situation, a number of emerging challenges prevent migrants and refugees from contributing to the Jordanian economy and labour market to the fullest. One problem is the capacity of Jordan's public budget and its education and training system to absorb the vast amount of refugees and effectively address the diversity of their needs. Another problem is that immigration appears to deplete the stock of human capital available to the economy instead of replenishing it, as immigrants to Jordan are considerably less skilled than the Jordanians who leave the country in search of economic opportunities abroad. Finally, the majority of refugees and migrants in Jordan tend to find employment in the informal sector, which promotes informality as a widespread form of employment, helps to establish a norm of precarious working conditions (e.g. lower pay), and diminishes the attractiveness of employment in the private sector for jobseekers from Jordan.

To address these and other problems, Jordan has embarked on numerous reforms. Indeed, reforms in education and training have been a priority for the Jordanian authorities for several decades now, leading to considerable financial investments and tangible improvement in key areas of commitment under the Millennium Development Goals and now the 2030 Sustainable Development Goals. Although Jordan remains committed to the implementation of numerous reform initiatives in the area of human capital development, the country faces persistent challenges in the design and implementation of reforms, which may diminish their effectiveness, their sustainability, and the traction they gain on the ground. The challenges include the sheer number of reform commitments, the centralised focus of reform plans, and – last but not least – the Syrian refugee crisis, which forces a shift in attention to the immediate, daily needs of the TVET system and away from longer-term aspirations for change.

The Covid-19 pandemic has had a tremendous impact on the country's challenges and aspirations for change. In mid-March, Jordan closed all education and training providers until further notice. According to a recent survey, some 78% of students are using distance learning opportunities and the Ministry of Education has also prepared to carry out school graduation exams (Tawjihi) online. Despite all efforts, however, the risk of disruptions to the proper operation and continuity of education and training remains, especially in areas where providers were already struggling with equity, quality and resource challenges before the pandemic.

Key human capital development issues and policy responses

The assessment also discusses two additional challenges related to human capital in Jordan: skills mismatch arising from the rigidity of VET provision, and underutilisation of human capital and of opportunities for human capital development through VET. These challenges are assessed in greater detail because the ETF believes that they require immediate attention as major human capital-related constraints to growth and at the same time concern policy areas that Jordan has declared to be of strategic importance.

Issue 1: Skills mismatch arising from the rigidity of VET provision and content

Data and analysis of the employment prospects of youth in Jordan suggest that education and training, in particular VET, hold the promise of a quicker transition to employment, a lower likelihood of becoming unemployed or inactive, a higher return on education investment, and better employment conditions in the case of employment in the private sector (OECD, 2018).

At the same time, the potential of VET to deliver on this positive outlook for graduates is contingent on additional factors, some of which seem to pose a long-standing challenge for Jordanian practitioners and policy-makers alike: the extent to which students are provided with practical experience during their VET studies, the proper and regular involvement of employers, the attraction of a more diverse selection of students in terms of socio-economic background and aptitude, etc. These challenges are aspects of the same underlying problem with which Jordan (and other countries for that matter) have struggled for some years now: most graduates in Jordan leave education and training without having acquired skills that are in demand in the labour market. This in turn harms their prospects for social and economic participation, limits the growth potential of the Jordanian economy, and hampers the development of the private sector and its capacity to create jobs.

The authorities in Jordan are well aware of the challenges and have designed several sets of measures to address them: boosting the availability of evidence on labour market needs for the purpose of VET planning and programme updates; introducing an education sector-wide framework of qualifications; promoting partnerships with the private sector; and undertaking efforts to introduce entrepreneurial learning in TVET to improve its labour market relevance.

The development of education and training databases and labour market information systems (LMISs) is among the most prominent policy responses to the challenge posed by the limited labour market relevance of VET in the country. However, the results of evidence collection efforts have not yet proven particularly effective in informing any improvement in VET policy and programme content, because the mechanisms for identifying and anticipating labour market needs are still largely disconnected from the education and training sector and there are no clear procedures or mechanisms to initiate change on the basis of such labour market insights. Labour market evidence has also proven of limited use in raising the relevance of VET, because the process of updating VET training programmes and making their provision more flexible appears to be slow, loosely coordinated (see Section 3), and too burdensome to allow for a quick enough response to external demand.

As for the National Qualifications Framework, the fragmentation of governance remains a major challenge. Jordan still struggles to make the transition to a sector-wide quality assurance and accreditation system that will replace the current three subsystems[2] See https://www.etf.europa.eu/en/publications-and-resources/publications/torino-process-2014-jordan
and ensure the flexibility and adequate responsiveness of education and training to external demand.

A third group of policy responses to boost the relevance of TVET and adjust the content of its programmes is the promotion of partnerships with the private sector. Although employers are represented on the boards of directors and governing councils, they are still far behind in playing the leadership role that the various strategies aspire for them to take in VET governance, policy-setting and programme planning[3] NRF B.2.II
. For one reason, there is a degree of reluctance on the part of authorities to properly involve employers. Also, the bodies representing the private sector do not necessarily capture the full range of employer needs. This is because they are mostly geared towards the needs of larger enterprises, whereas Jordan's economy is dominated by small and micro-enterprises of less than 20 employees.

Finally, Jordan is mobilising entrepreneurial learning (EL) to improve the labour market relevance of its education and training system. By identifying EL as a policy response to the limited relevance of education and training, Jordan is following a major international trend. However, there are also risk factors that may impede the effectiveness of these and other EL-related policies. The risks include structural problems such as red tape and fiscal and investment instability (World Bank, 2020), but also a persistently weak entrepreneurial culture among young people in Jordan, which is partly due to the absence of any focus on EL in most TVET and higher education programmes.

Issue 2: Underutilisation of human capital and of opportunities for human capital development for youth and women

Equitable access to education, training and employment opportunities is a strategic priority in all policy plans for human capital development in Jordan. Despite this long-term commitment, however, certain groups of Jordanian citizens continue to be disadvantaged in terms of access to education and employment. This in turn prevents them from contributing to the social and economic development of the country and hampers their prospects for individual prosperity and well-being. The two most affected groups in this respect are women and youth of secondary-school age. The rate of female participation in employment is persistently low (the lowest of any ETF partner country), while the propensity of youth to avoid technical and vocational education as a choice of study hampers the effectiveness of policies to promote human capital development through TVET. The latter also limits the employment prospects of young people, especially young women.

The Jordanian authorities have introduced measures to address a variety of challenges concerning education, training, and labour market participation, and some of them target the difficulties of youth and women to enter the labour market.

A number of these measures address the challenge of low participation in human capital development opportunities through VET, but their success remains limited. Female enrolment rates in VET remain persistently low and fluctuate from year to year, sometimes by as much as 12% from one year to the next. Jordan also has a high rate of early leavers, which is considerably higher than in EU countries, and its rate of participation in VET is persistently low in international comparison (11.5% in 2018), especially for young women (8.6% in the same year).

Such data suggest that the intended effect of the policy measures may be susceptible to the adverse influence of factors that have not yet been fully taken into consideration. One of these factors is the lack of proper support for students, particularly female students, during training. Another factor is fragmentation in the implementation of strategic priorities across the various bodies in charge of VET in Jordan. In the past and more recently, efforts have been put into creating umbrella institutions (initially an ETVET secretariat and later, in 2019, the Technical and Vocational Skills Development Commission, or TVSD Commission). However, there is little evidence of coordination or integration in the implementation of these and other priorities among the various TVET systems. Other reasons may be the relative marginalisation of VET in comparison with other segments of the education and training system, and the lack of flexibility in VET provision to accommodate the different learning needs and circumstances of at-risk learners.

Another set of measures targets low youth and female participation in the labour market. Some of the actions rely on the participation of women and youth in formal education and training, while others involve training provided in the form of active labour market policy (ALMP) measures. Finally, a third set of actions is organised and implemented in the context of projects supported by bilateral donors.

While these actions are rich in detail and ambition, there is also scope for improvement to increase their effectiveness and impact. A shared weakness of the current solutions in the domain of formal education and training is that they fail to reach some of their target populations, notably women who are inactive or in search of employment. According to the Torino Process national report, the rate of enrolment in apprenticeships and other forms of work-based learning (WBL) remains unsatisfactory, mostly because of cultural limitations and the failure of providers and partner enterprises to provide appropriate working conditions for women.

The ALMP-related measures also leave some scope for improvement. Their focus is narrow and aimed only at the economically active population. None of the actions addresses economic inactivity, especially among women of working age, which is a far more widespread challenge than unemployment. According to data from the Department of Statistics, the share of women of working age who may potentially be left out because they are inactive was over 96% in 2019.

Finally, this assessment concludes that overall the policy responses to the challenge of low youth and female participation do not pay sufficient attention to the diversity of their intended beneficiaries. The needs of young female graduates looking for first-time employment are likely to be different from those of women who are forced to leave their jobs and become inactive, while the needs of both groups also differ from the needs and possibilities of women who have been economically inactive for a prolonged period of time. At the time of this assessment, there was no evidence that such a differentiation by target group had gained any traction in policy planning and implementation in the area.


Recommendations

The recommendations in the report are grouped into two clusters, one for each key issue discussed in the assessment.

Recommendations addressing issue 1

R.1 Raise the responsiveness of TVET to labour market needs by focusing on evidence

The ETF recommends establishing a process of regular (annual) reviews and – where needed – updates of TVET programmes in all TVET subsectors based on regular screening and consideration of evidence on labour market needs provided by the LMIS. This could be done by reinforcing the mandate of already existing bodies, such as the newly established sector skills councils, to coordinate with the private sector. In this respect, it would be important to put the annual review of programme relevance on the basis of labour market evidence high on the agenda of the councils that are responsible for governing the various segments of TVET in Jordan, most notably the TVSD Commission in keeping with its mandate to support youth and address unemployment through better TVET.

Additionally, the ETF recommends a revision of the process for updating TVET programmes to bring the process closer to VET providers and make it faster and more agile. The modularisation of programmes could be an important element in this effort.

R.2 Prioritise small and micro-enterprises in the promotion of partnerships between TVET and the private sector

The ETF recommends expanding the involvement of employers to include their participation in the setting of TVET standards, the design of training content, and the testing of competencies provided by TVET. Extra effort should be invested in capturing the needs of small and micro-enterprises, which at the time of this assessment were the dominant drivers of job creation in the country. This could be done by diversifying the current profile of private-sector representatives on the TVSD Commission in order to reflect the composition of the labour market more accurately.

In addition to financial incentives and support, the key to involving small and micro-enterprises would be to provide them with the prospect of training that links to their business needs.

R.3 Harmonise the provision of entrepreneurial learning across the TVET system

The ETF recommends prioritising EL in all segments of TVET irrespective of the division of governance responsibilities for the sector, and ensuring that there is a unified approach to the integration of EL in TVET curricula across the TVET system.

This could be done by committing to minimum standards for EL provision, such as a comparable number of hours and a comparable choice of EL elements, which may include the current focus of the Vocational Training Corporation (VTC) on communication, vocational tracks, self-marketing, problem-solving, life skills, entrepreneurship and self-employment.

Recommendations addressing issue 2

R.4 Improve and diversify support for at-risk students in TVET

The Jordanian authorities have introduced a range of policy measures to attract youth and women to HCD opportunities through VET, but there are also limitations that prevent these measures from gaining traction and supporting their intended beneficiaries. One of the limitations is the lack of proper support for students, particularly female students, who may be struggling with their VET instruction, given that the only form of support that they received at the time of this assessment was to extend the length of their training.

The ETF recommends developing solutions that address a wider selection of risks to participation, such as the poor quality of teaching, the fact that the family situation of students may call for greater flexibility in the timing of courses, the lack of an individualised approach to teaching, etc. A renewed discussion of these challenges should be put high on the work agenda of the TVSD Commission as well.

R.5 Improve the conditions for female participation in mainstream TVET courses

The ETF recommends improving the conditions for female participation in mainstream TVET courses. The effort should include improving the course offer, making it more gender-sensitive, raising awareness and gender sensitivity among TVET teachers and trainers, and establishing more gender-friendly training environments.

The ETF also suggests setting up a comprehensive, national career guidance system that includes a focus on course counselling that encourages women to expand their options when choosing educational fields of study.

R.6 Prioritise HCD measures that support the reintegration of inactive women into the labour market

At the time of this assessment, there were several ALMP initiatives to reduce the high unemployment rate of youth and women through training and retraining. This chapter notes that their impact is positive and tangible, but also finds that they benefit only those women and youth who are economically active.

The ETF recommends expanding these measures to include inactive women and youth in support of their reintegration into the economy, for instance by investing in the development of a CVET offer in accordance with labour market demand across the country and by mainstreaming CVET as a policy priority in the work of bodies that govern the TVET sector, starting with the TVSD Commission.

Examples of prioritisation measures could include preparing information and incentive packages for women, youth, and their families in support of labour market participation, and addressing the non-monetary obstacles to labour market participation. These obstacles are largely neglected and include working environments where there is a lack of responsiveness to the needs of women for flexible working arrangements and part-time employment, and where employment decisions tend to discriminate against female candidates for employment.

Conclusions

Jordan has achieved remarkable progress in challenging circumstances, but some problems persist and require continuing attention. Still, the evidence analysed in preparation of this assessment suggest that there are strong reasons to conclude that TVET is set on a good course to become a highly responsive and relevant segment of the human capital development system in Jordan, as envisaged in most of the country's national plans for prosperity and economic advancement. For this to happen, a key condition is to ensure consistency, continuity, and a steady commitment to improvement across the board among the institutions and stakeholder groups that are involved in HCD and TVET-related reforms. The establishment of the new Technical and Vocational Skills Development Commission is a cause for much hope in this respect.


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Table of Contents

  • Preamble
  • Executive summary
    • Challenges for human capital development
    • Key human capital development issues and policy responses
      • Issue 1: Skills mismatch arising from the rigidity of VET provision and content
      • Issue 2: Underutilisation of human capital and of opportunities for human capital development for youth and women
    • Recommendations
      • Recommendations addressing issue 1
        • R.1 Raise the responsiveness of TVET to labour market needs by focusing on evidence
        • R.2 Prioritise small and micro-enterprises in the promotion of partnerships between TVET and the private sector
        • R.3 Harmonise the provision of entrepreneurial learning across the TVET system
      • Recommendations addressing issue 2
        • R.4 Improve and diversify support for at-risk students in TVET
        • R.5 Improve the conditions for female participation in mainstream TVET courses
        • R.6 Prioritise HCD measures that support the reintegration of inactive women into the labour market
    • Conclusions
  • 1. Introduction
    • 1.1 About this assessment
    • 1.2 Country overview
    • 1.3 Strategic context: strategic commitments, reforms and donor participation
  • 2. Human capital: overview of developments and challenges
    • 2.1 Overview and key data
    • 2.2 Migrants, refugees and the human capital of Jordan
      • Data on migration, refugee flows and policy responses
      • Refugees: integration-related pressures
      • Migrants: developments leading to brain drain
      • Migrants and refuges: informality and worsening employment conditions
    • 2.3 Continuity and progress on reforms in education and training
      • An overwhelming diversity of commitments to reform
      • Lack of regional focus in the planning and implementation of reforms
      • External factors
    • 2.4 Human capital development amid the Covid-19 crisis: challenges to continuity
  • 3. Assessment of key issues and policy responses
    • 3.1 Rigidity in VET content and provision as a source of skills mismatch
      • 3.1.1 Description of the problem
      • 3.1.2 Policy responses and gaps
        • VET relevance through information-sharing and the use of labour market evidence
        • Relevance through a sector-wide framework of national qualifications
        • Promotion of partnerships with the private sector
        • Boosting the labour market relevance of VET through entrepreneurial learning
      • 3.1.3 Recommendations
        • R.1 Raise the responsiveness of TVET to labour market needs by focusing on evidence
        • R.2 Prioritise small and micro-enterprises in the promotion of partnerships between TVET and the private sector
        • R.3 Harmonise the provision of entrepreneurial learning across the TVET system
    • 3.2 Underutilisation of human capital and of opportunities for human capital development for youth and women
      • 3.2.1 Description of the problem
        • Low rate of participation in technical and vocational education and training
        • Limited participation in the labour market
      • 3.2.2 Policy responses and gaps
        • Description and effectiveness of policies addressing low participation in HCD through VET
        • Description and effectiveness of policies addressing limited youth and female participation in employment
          • Measures in the domain of formal education and training
          • Measures in the domain of ALMP
          • Projects and donor-supported initiatives
          • Shared policy weaknesses
      • 3.2.3 Recommendations
        • R.4 Improve and diversify support for at-risk students in TVET
        • R.5 Improve the conditions for female participation in mainstream TVET courses
        • R.6 Prioritise HCD measures that support the reintegration of inactive women into the labour market
  • 4. Conclusion
  • Acronyms
  • References
  • Summary of recommendations
  • The education and training system of Jordan
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The European Training Foundation is a European Union agency that helps transition and developing countries harness the potential of their human capital through the reform of education, training and labour market systems, and in the context of the EU's external relations policy. Based in Turin, Italy, the ETF has been operational since 1994.
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