Refugees and Host Communities Seeking Self-Employment Opportunities in Jordan

Executive Summary

Jordan has faced repercussions from global events marked by the COVID-19 pandemic and the Ukraine crisis. The Syrian crisis had already placed tremendous pressure on social infrastructure, natural resources and employment. Rising interest rates combined with a surge in the national budget deficit has suppressed job growth and increased unemployment for both host and non-host country nationals. According to the Jordan Department of Statistics (DoS), the unemployment rate reached 22.6% during the second quarter of 2022. To understand and map socioeconomic needs, potential resources and stakeholders in three selected locations in Jordan (Rihab, Quweirah and Wadi Musa), ARCS commissioned a consultancy on Labour Market Analysis (LMA) to establish a baseline for livelihood opportunities for self-employment and businesses in the private sector. These target locations were identified based on their unique local cultural heritage and their development potential in the tourism sector. This Labour Market Analysis focused on refugees, women, youth and persons with disability (PwD).

METHODOLOGY

The SRD study team used randomized sampling to conduct in-person surveys and interviews.
Both quantitative and qualitative data were collected and disaggregated according to gender, age, and area, as applicable. The LMA collected evidence from a total of 764 individuals including 421 job seekers, 201 business owners, 32 Key Informant Interviews (Klis) and 110 participants from 8 Focus Group Discussions (FGDs).

FINDINGS

The findings section of the LMA is divided into two parts. The first part provides an overview of the key discoveries that emerged during the market analysis. The second part responds to the objectives of this LMA.

• At the time of this LMA in October 2022, the results depicted a weak business climate in Jordan. On the national level, rising interest rates and high inflation have resulted in an economic slowdown. More than half of the 201 businesses interviewed in this LMA reported slow or stagnant growth in their sector. Business owners said that market uncertainty was their greatest barrier.

• Evidence from the business survey showed that only 29.4% of the businesses were growing in terms of the number of jobs and income. Rihab reported the greatest growth at 34.1% and Quweirah showed the least growth at 19.4%.

• The majority of business owners across all sectors were not planning to hire. This was partly due to seasonality within the agriculture and tourism sectors as well as sociocultural preferences for hiring. As it turned out, 46.8% of business owners typically hire through family and friends. This study found that business owners favor non-Jordanian nationalities, especially in the agriculture sector.

• The tourism sector in Ma’an Governorate showed the strongest growth. Agriculture was seen as the most challenging occupation for self-employment. The handicraft sector showed the most potential, but it was the least developed as a formal occupation.

• Job seekers responded positively to self-employment opportunities. According to the self-assessment results, 92% of the job seekers identified themselves as being self-confident and determined to succeed in a business. This finding pointed to job seekers’ heightened interest in self-employment opportunities and the need to provide trainings in all geographic areas. However, to be considered employable, job seekers needed technical skills and communication training. In addition, access to financial assistance was needed for business startups.

The Scope of the LMA was to conduct a thorough market analysis and mapping exercise of the socioeconomic needs and employment opportunities in the target locations of Wadi Musa,
Quweirah and Rihab. The findings from this LMA provide insight on the viable entry points for making the labour market, for refugees and vulnerable Jordanians, more accessible and inclusive in the target locations. The LMA team compiled key market information that is organized into five separate tables, summarizing the following: 1) Potential Business Opportunities 2) Occupational Interests 3) Skills for Self-employment 4) Obstacles and gaps; and 5) Barriers to Employment. The tables below summarize these findings.