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  • POLICIES FOR HUMAN CAPITAL DEVELOPMENT IN JORDAN

POLICIES FOR HUMAN CAPITAL DEVELOPMENT IN JORDAN

An ETF Torino Process assessment

Jordan
Type
TRP assessment report
Year
2020
Related practice areas
Policy analysis and progress monitoring
Full report

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Executive summary

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2. Human capital: overview of developments and challenges

2.1 Overview and key data

This report has previously noted that human capital is an aggregate of the knowledge, skills, talents and abilities of individuals, which they can use for economic, social and personal benefit. The value of human capital depends on how well it is developed and the extent to which it is then available and used. Table 2 presents a selection of human capital development indicators that give a basic overview of how Jordan is doing in this respect.

Table 2. Selected HCD indicators, Jordan

Year

Value

Rank

(1) Population structure (% of total)

0-14

2018

34.1%

15-64

2018

62.3%

65+

2018

3.5%

(2) Average years of schooling

na

(3) Expected years of schooling

2017

11.62

(4) Learning-adjusted years of schooling

2017

7.61

(5) Adult literacy

2018

98.2%

(6) Global Innovation Index Rank (x/126)

2019

29.61

86

(7) Global Competitiveness Index Rank (x/137)

2019

60.9

70

(8) Digital Readiness Index Rank (x/118)

2019

12.14 accelerate

68

Sources: (1) UN Population Division, World Population Prospects, 2017 revision; (2) UNESCO, UIS database; (3) and (4) World Bank (2018), Human Capital Index; (5) UNESCO, UIS database; (6) WEF, The Global Innovation Index, 2018; (7) WEF, Global Competitiveness Index 4.0, 2018; (8) Cisco, Country Digital Readiness, 2018; and (9) ETF, skills mismatch measurement in the ETF Partner Countries.

The population of Jordan is predominantly young: in 2018, over one-third (34.1%) was under the age of 15, which is relatively high in international comparison. For instance, the average share of youth in the same age group was only 15.6% in the EU in 2018. There is also a sizeable share of people of working age (62.3%), while those of retirement age and beyond accounted for only 3.5% of the population, which is over 5.6 times lower than the EU average (19.7%).

Considering the size of the school-age population and the associated pressures on the enrolment capacity and budget of the education and training sector, Jordan is doing remarkably well in safeguarding access to education and graduation chances for young people. On average, students can expect to receive 11.62 years of schooling, albeit of limited quality and effectiveness (11.62 years of schooling translate to only 7.61 years of learning).

Nevertheless, the rate of adult literacy is high (98.2%), the country ranks in the upper half on the list of global competitiveness (ranking 10th out of 137 countries), and it is gaining ground in terms of digital readiness as measured by the Digital Readiness Index.

2.2 Migrants, refugees and the human capital of Jordan

Data on migration, refugee flows and policy responses

Countries are commonly expected to make a distinction between refugees and migrants when setting policies for these two groups of people within their borders. Refugees are protected in international conventions and governments are obliged to treat them in accordance with international norms and commitments to refugee protection and asylum (UNHCR, 2016). Migrants on the other hand can be dealt with under national immigration laws and processes (UNHCR, 2019) on the assumption that unlike refugees, they have left their country of their own accord, mainly in pursuit of economic opportunities or for education, family or other reasons.

For years now, Jordan has been experiencing a tremendous influx of people in both groups. In 2017, the total number of immigrants and refugees in Jordan was over 3.2 million, which was about one-third of the population (10.05 million in 2017) and 19% greater than in 2010 (Figure 1). The number of illegal immigrants (workers without a permit) is estimated to be about twice as high as the officially registered number (680 000 and 352 350, respectively)[17] NRF A.3.2
, the majority being immigrants of working age from Egypt (54%), Syria (12%) and other countries (34%)[18] NRF B.1.3
.

Figure 1. Total number of immigrants and refugees by age group (2010, 2015, 2017)

Image

Source: ETF database and United Nation Population Division. Trends in International Migrant Stock, 2017 revision (UN database)

Owing to its proximity to areas in turmoil, Jordan has been a traditional destination for refugees, mostly from Palestine, Iraq and Syria. According to data from the UN Relief and Works Agency for Palestinian Refugees (UNRWA), Jordan hosted over 2.1 million Palestinians as of 2016. In addition, the Office of the High Commissioner for Refugees (UNHCR) in Jordan had registered 655 732 refugees from Syria and 61 405 from Iraq as of 2017[19] NRF A.3.2
(Figure 2). There are also refugees from Yemen and Libya.

Figure 2. Total number of UNHCR-registered refugees and asylum seekers by year (2015–2018)

Image

Source: ETF database and UNHCR–Jordan

Jordan is not a signatory to the 1951 UN Convention Relating to the Status of Refugees, but it has traditionally remained open to forced migrants and it has put in place policies to ease their stay in the country and even to integrate some of them (e.g. Palestinian refugees). In 2016 in response to the Syrian refugee crisis, the country also launched the Jordan Response Plan for the Syria Crisis 2016–2018, which commits to allowing Syrian refugees to work and carry out trade inside and outside the refugee camps (Athamneh, 2016).

In addition to measures aimed at regulating the legal status of refugees and their access to the labour market, Jordanian authorities have also prioritised access to education and training as a support measure. With the help of the international donor community, Syrian refugees have (paid) access to VET programmes and free-of-charge access to general education. According to the national report, some 115 681 young people (of which 55% were female) benefited in 2017 from life skills programmes provided by UNICEF Jordan and its partners in camps and host communities, and close to 500 youth (half were female) began certified vocational training[20] NRF C.1.2
. In addition, the response plan in support of Syrian refugees includes projects that focus on employment creation, including job matching and employability services, vocational training and apprenticeships, and career counselling services designed to increase access to decent work opportunities[21] NRF C.1.4
.

The readiness of Jordanian authorities to accept and continue accepting foreign nationals in need of refuge and/or economic opportunity is commendable. Nonetheless, there are also challenges that prevent migrants and refugees from contributing to the Jordanian economy and labour market to the fullest extent.

One problem is the capacity of Jordan's public budget and its education and training system to absorb the vast number 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 the search of economic opportunities abroad. Finally, most refugees and migrants in Jordan tend to find employment in the informal sector. This 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. The next sections look at each of these problems in more detail.

Refugees: integration-related pressures

Refugees continue to be a major socio-economic challenge for Jordan. For one thing, most of those fleeing the Syrian conflict (51%) are youth below the age of 18, they come from households headed by women, and most of the households are classified as extremely poor[22] NRF A.3.2
. These demographic and socio-economic characteristics complicate their participation in the Jordanian economy and society, because for years now, Jordan has been struggling to boost the economic participation of the very same segments of its own population: youth, women, and people from socio-economically disadvantaged backgrounds.

The large proportion of young people among the refugees also creates pressure for additional investment in the provision of key services such as education and training, which can be a difficult task when resources are limited. The decision of authorities to authorise refugees to live outside the refugee camps is straining the capacity of numerous communities in Jordan to provide education, healthcare and water supply services and address local unemployment. In 2016, the latest year for which there are relevant data, only 17.4% of Palestinian refugees and 18.2% of Syrian refugees were still living in official refugee camps (Athamneh, 2016). In the course of only a few years up to 2016, the number of Syrian students enrolled in public schools grew almost ninefold to over 143 000[23] NRF C.1.2
.

Migrants: developments leading to brain drain

Migration can be a source of enrichment and diversification of a country's human capital. In Jordan, however, it appears to be gradually reducing the stock of skills available to employers. Immigrants to Jordan outnumber those who leave the country by a factor of four (in 2019 there were 3 346 703 immigrants and 784 377 emigrants), but most of those who leave the country are highly qualified (about 85% have completed tertiary education), while those who replace them are mostly unskilled or semi-skilled[24] NRF B.1.3
.

Despite the positive aspects of migration such as remittances, these developments and data describe a textbook case of brain drain. The problem is amplified by the absence of policies and measures in support of circular migration, the limited opportunities for the upskilling of guest workers, and the lack of proper recognition of their prior, non-formal and informal learning. At the time of this assessment, the skills of immigrants could be tested only upon an official request from the Ministry of Labour for each immigrant separately[25] NRF B.1.8
or in accordance with project-related agreements with international organisations and agencies that provide training to Syrian refugees[26] NRF A.1.6
.

Migrants and refuges: informality and worsening employment conditions

Refugees are not allowed to work in Jordan and it is very difficult for them to obtain a work permit (Athamneh, 2016). Combined with the lack of options to earn legitimate income and the risk of poverty, this situation forces many refugees into the informal economy. As already noted, the Jordanian labour market employed around 680 000 illegal workers in 2018. Most were refugees from Syria, but there were also illegal workers from Egypt. At the same time, workers from Egypt also represent the biggest group of legally employed foreign nationals in Jordan[27] NRF A.3.2 and A.1.1
.

The national report suggests that the large number of immigrant and refugee workers creates a competition for jobs that limits the employment opportunities of Jordanians[28] NRF B.1.3
. However, the impact of foreign workers on the domestic labour market is likely to be more complex. Jordanian nationals are traditionally more interested in public-sector employment or in private-sector employment that offers conditions that are close to those on offer in the public sector in terms of stability, working time, and prestige (ETF, 2016a). For the most part, these jobs are off-limits to refugees and immigrants.

The contribution of immigrants and refugees to the proliferation of informality in the labour market is a bigger cause for concern. Even before the Syrian refugee crisis, the informal sector in Jordan accounted for over one-quarter of GDP,[29] NRF B.1.1
and the share is likely to be even higher today. This leads to foregone income for the public budget in the form of taxes and makes it difficult to pursue evidence-based employment policies, such as skills forecasts, since employers and employees have an incentive to hide information about the actual state of affairs in their professional setting, which in turn undermines the reliability of labour market data and projections.

Informality and otherwise illegal employment also contribute to the establishment of substandard working conditions as the norm. The informal sector pushes down wages and diminishes the attractiveness of work in the private sector, which in turn fuels the preference of Jordanian nationals for jobs in the public sector, which are scarce and getting scarcer. In this sense it is true that illegal workers contribute to official unemployment in Jordan, albeit not by taking away jobs but rather by encouraging employers to offer substandard working conditions in the private sector even in times of economic growth.

2.3 Continuity and progress on reforms in education and training

Reforms in education and training have now been a priority for the Jordanian authorities for several decades, 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 continues to commit to the implementation of numerous reform initiatives in the area of human capital development as described earlier in Chapter 1, persistent challenges affect the design and implementation of reforms and may diminish their effectiveness, their sustainability, and the traction they gain on the ground.

An overwhelming diversity of commitments to reform

The first challenge is the sheer number of reform commitments, which may be overstretching the capacity of the education and training sector to coordinate and absorb the envisaged changes. The key strategic documents that address the TVET sector in Jordan[30] NRF A.2.4
– the National Agenda 2006–2015, the National Employment Strategy 2011–2020, the National E-TVET Strategy 2014–2020, and the National Human Resources Development Strategy 2016–2025 (NHRD) – describe a wide range of actions and initiatives, many of which imply profound changes in the ways that the TVET sector is set up and is supposed to operate and cooperate with external stakeholders.

For instance, the National Agenda envisages a restructuring of the institutional framework through which VET contributes to the employability of people of working age, the development of targeted programmes to reduce unemployment among people with special needs, an increase in female workforce participation, an increase in private-sector involvement in VET, the establishment of several high-level coordination councils, and curriculum reform. In addition, the National Employment Strategy commits to revisions of the boards of key players in the governance of VET, such as the (now defunct) Employment, Technical and Vocational Education and Training (ETVET) Council and the Accreditation and Quality Assurance Commission for Higher Education Institutions (AQACHEI), and it commits to expanding VET programmes for direct on-the-job training in the private sector.

The E-TVET strategy in turn describes plans to improve the governance of TVET, the relevance of its outputs, the degree of inclusiveness of TVET programmes, their systems of quality measurement, and the sustainability of TVET funding. More recently, the NHRD has committed to the creation of new pathways towards tertiary VET; an increase in the quality of TVET by aligning the standards for teacher training and quality assurance for all providers; an increase in accountability through better governance; and the creation of more innovative forms of funding and TVET delivery.

The national report suggests that the implementation of many of these commitments thus far has been only partial. Some priorities have been delayed and others completely abandoned[31] See National Employment Strategy and NRF A.2.4.
, while action plans are regularly drafted, but not always implemented (ETF, 2017). Also, owing to a lack of capacity and awareness, many of the more innovative solutions or resources, such as e-learning and data on career guidance, have not actually been adopted or used by TVET providers[32] NRF B.1.2
.

Lack of regional focus in the planning and implementation of reforms

The second long-standing challenge is the centralised focus of reform plans, which for the most part are designed, adopted and operationalised in a centralised, top-down manner with a primary focus on the capital Amman and do not involve much consultation with regional stakeholders and providers or with middle to low-level managers and decision-makers in TVET.

One aspect of the problem is insufficient engagement and communication about reforms with the parents and communities that TVET providers serve. This may also be the reason why some reports suggest that most reform interventions are procedural and not substantive in nature, which may further complicate improvement. There are also shortcomings in the communication among central-level institutions that bear responsibility for the implementation of reform plans (ETF, 2016a; OCHA, 2017).

External factors

The third and final challenge to the effectiveness and continuity of reforms is the Syrian refugee crisis. Although the influx of refugees is a development that lies beyond the control of authorities and TVET stakeholders, their presence has a profound impact on the education and training system. It forces a shift in attention to the immediate daily needs of the TVET system and away from longer-term aspirations for change. According to some reports, the number of Syrian children enrolled in schools is the main cause of additional barriers that affect the quality of the learning environment and the achievements that Jordan has thus far attained during the reform process (OCHA, 2017).

2.4 Human capital development amid the Covid-19 crisis: challenges to continuity

The Covid-19 pandemic has led to the closure of an unprecedented number of schools and universities as governments around the world struggle to contain the spread of the disease. According to UNESCO, some 192 countries introduced localised or nationwide closures of educational institutions at the peak of school closures in April and May, affecting an estimated 91% of the world's student population[33] See https://en.unesco.org/covid19/educationresponse
.

Jordan closed all education and training providers at the beginning of the pandemic in mid-March[34] Decree by the Prime Minister of 17 March 2020
. Since then, general education has been delivered through TV and through a virtual learning platform (Darsak) that covers only general education. Online courses have been launched by schools, universities and community colleges. According to a recent survey, some 78% of students use the available distance learning opportunities and the Ministry of Education has also prepared to carry out school graduation exams (Tawjihi) online (ETF, 2020a). In addition, a dedicated e-learning platform for technical and vocational education and training was launched in May as part of a long-term project in the TVET sector, which also enjoys support from the EU Skills for Employment and Social Inclusion Programme.

Now several months into the new situation, there is an awareness that the combined effect of school closures and infrastructure-intensive channels of teaching can have numerous consequences, some positive and others adverse, especially for certain segments of the student population. Despite all efforts, 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.

Two of the major challenges are how to reach all students and how to provide them with quality education. The TV broadcasts and online courses are not readily available to all teachers and their students, because there are issues of coverage and accessibility. Also, where availability is not a problem, teachers and students may not be sufficiently prepared for the new modes of instruction (ETF, 2020a).

Finally, the crisis and the transition to distance learning solutions have deepened the capacity challenges created by the inflow of refugee students into the education and training system.


Previous ChapterNext Chapter

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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