Tech sector has potential to significantly reduce unemployment — report

AMMAN — Jordan’s technology sector has the potential to significantly reduce the country’s high unemployment rate, according to a report by Endeavour issued on Sunday. 

The "Multiplying Impact: Amman's High Growth ICT Industry" report said the ICT sector can also utilise the Kingdom's strong human capital base. 

Although the country witnessed sustained gross domestic product growth over the past 15 years, it was not accompanied by a similar rise in job creation, according to the report, which was e-mailed to The Jordan Times.

Jordan’s ICT sector is now worth at least $2.2 billion — having grown from $560 million in 2000 — and is poised to play a major role in capitalising on the abilities of the country’s knowledge workers, the report indicated.

Highlighting the importance of supporting ICT entrepreneurs, it called on businesses, organisations and policy makers to support acceleration of entrepreneurs at each stage in order to further the growth of the tech sector.

"Jordan has experienced positive economic growth in the last 15 years, averaging over 5 per cent, with the World Bank forecasting GDP growth rates of 3.1 per cent and 3.5 per cent for 2014 and 2015 respectively," the report said.  

"However, the country has not been able to create sufficient jobs to reduce the high unemployment rate, which remains at 12-15 per cent."

Noting that the local labour market has relied heavily on the public sector for job creation, with almost 42 per cent of new jobs coming from the public sector between 2000 and 2008, the report said the ICT sector offers a promising solution to employment challenges.

The economy’s human capital base is one of the most competitive in the region, with secondary school enrolment standing at nearly 90 per cent, not to mention a substantial high-skill diaspora population, estimated at around 500,000, it added. 

Stressing the importance of the ICT sector, which contributes about 14 per cent to the GDP, the report said industries should capitalise on the economy’s regional comparative advantage in ICT services, technical innovation and management talent.