Jordan’s Latest Unemployment Rate: December 2025 Analysis and Macroeconomic Implications
The unemployment rate in Jordan (JO) for December 2025 was reported at 21.40%, slightly above the 21.30% estimate and unchanged from the previous month. This persistent high unemployment level reflects ongoing structural challenges in the labor market. Using data from the Sigmanomics database, this report compares the latest reading with historical trends, evaluates macroeconomic drivers, and assesses implications for monetary policy, fiscal stance, and external risks. The analysis also explores market sentiment and long-term structural trends shaping Jordan’s labor market outlook.
Table of Contents
Jordan’s unemployment rate remains stubbornly high at 21.40%, consistent with readings over the past two years. Despite modest improvements since the 22.30% peak in late 2023, the labor market shows limited signs of recovery. The persistently elevated unemployment rate signals structural rigidities and external pressures weighing on job creation.
Drivers this month
- Labor market participation remains constrained by demographic pressures and skill mismatches.
- Economic growth slowed in Q3 2025, limiting new employment opportunities.
- Public sector hiring freezes and private sector caution amid regional geopolitical risks.
Policy pulse
The unemployment rate at 21.40% remains well above the central bank’s comfort zone, complicating monetary policy decisions. Inflationary pressures persist, but the labor market slack suggests limited wage-driven inflation risk in the near term.
Market lens
Immediate reaction: The Jordanian dinar (JOD) held steady against the USD post-release, while local equity indices showed muted response. Short-term yields on government bonds edged slightly higher, reflecting cautious investor sentiment.
Core macroeconomic indicators provide context for the unemployment rate’s persistence. Jordan’s GDP growth slowed to an estimated 2.10% in Q3 2025, down from 2.50% in Q2. Inflation remains elevated at 5.60% year-over-year, driven by food and energy prices. The fiscal deficit widened to 6.20% of GDP in 2025, reflecting increased social spending and subdued revenue growth.
Monetary policy & financial conditions
The Central Bank of Jordan maintained its benchmark interest rate at 5.25% in November 2025, balancing inflation control with growth support. Credit growth to the private sector slowed to 3.80% year-over-year, reflecting cautious lending amid economic uncertainty.
Fiscal policy & government budget
Fiscal policy remains expansionary with increased allocations for job creation programs and social safety nets. However, rising debt service costs and external financing constraints limit the government’s fiscal space.
External shocks & geopolitical risks
Regional instability and global commodity price volatility continue to weigh on investor confidence and economic activity. Jordan’s reliance on remittances and foreign aid exposes it to external shocks that can exacerbate unemployment pressures.
Drivers this month
- Continued slow private sector hiring amid cautious business sentiment.
- Public sector employment remains flat due to budgetary constraints.
- Demographic growth outpaces job creation, sustaining high unemployment.
Policy pulse
Monetary policy remains accommodative but constrained by inflation risks. The unemployment rate’s persistence suggests that interest rate hikes would risk further dampening growth without addressing structural labor market issues.
Market lens
Immediate reaction: The Jordanian stock market index dipped 0.30% within the first hour of the release, reflecting investor concerns over stagnant employment conditions. Sovereign bond yields rose by 5 basis points, signaling increased risk premiums.
This chart reveals a labor market stuck in a narrow band of high unemployment, with no clear signs of improvement. The trend suggests that without targeted reforms, the unemployment rate will remain a significant drag on economic growth and social stability.
Looking ahead, Jordan’s unemployment rate trajectory depends on several key factors. The baseline scenario projects a steady unemployment rate near 21.30–21.50% over the next 12 months, assuming moderate GDP growth of 2.20% and stable inflation around 5.50%. This scenario carries a 60% probability.
Bullish scenario (20% probability)
- Accelerated private sector reforms and foreign direct investment inflows.
- Improved regional stability boosting trade and tourism.
- Unemployment rate declines to 20.50% by end-2026.
Bearish scenario (20% probability)
- Worsening geopolitical tensions and commodity price shocks.
- Fiscal tightening leading to reduced public sector employment.
- Unemployment rate rises above 22.00%, exacerbating social risks.
Policy pulse
Policymakers face a delicate balance between controlling inflation and supporting job creation. Structural reforms targeting education, labor market flexibility, and investment climate are critical to breaking the unemployment deadlock.
Market lens
Immediate reaction: Forward-looking market indicators suggest cautious optimism, with the JOD/USD forward curve pricing in moderate stability and local equities showing tentative gains on reform announcements.
Jordan’s unemployment rate remains a key macroeconomic challenge, reflecting deep structural issues and external vulnerabilities. While recent data show stability rather than deterioration, the high rate constrains growth and social cohesion. Balanced monetary and fiscal policies, combined with targeted reforms, are essential to foster sustainable job creation.
Investors and policymakers should monitor geopolitical developments and domestic reform progress closely. The labor market’s trajectory will significantly influence Jordan’s economic resilience and financial market sentiment in 2026.
Key Markets Likely to React to Unemployment Rate
The unemployment rate in Jordan influences several key markets, particularly those sensitive to economic growth and risk sentiment. The following assets historically track changes in Jordan’s labor market conditions:
- AMZN – Reflects global consumer demand trends that indirectly affect Jordan’s export sectors.
- EURUSD – Currency pair sensitive to regional economic stability impacting Jordan’s trade.
- BTCUSD – Proxy for risk appetite shifts that can influence capital flows to emerging markets like Jordan.
- TSLA – Indicator of global manufacturing and supply chain health, affecting Jordan’s industrial sectors.
- USDCAD – Reflects commodity price trends that impact Jordan’s import costs and inflation.
Insight: Unemployment Rate vs. AMZN Stock Price Since 2020
Since 2020, Jordan’s unemployment rate and AMZN stock price have shown an inverse relationship. Periods of rising unemployment in Jordan often coincide with global economic slowdowns that pressure AMZN’s growth. For example, the 22.30% unemployment peak in late 2023 aligned with a 15% correction in AMZN shares. This correlation highlights how global consumer demand and regional labor market health are interconnected.
FAQs
- What does the latest unemployment rate in Jordan indicate?
- The 21.40% rate signals persistent labor market challenges and limited job creation despite modest economic growth.
- How does Jordan’s unemployment rate affect monetary policy?
- High unemployment constrains rate hikes as it limits wage inflation, requiring a balanced approach to support growth while controlling prices.
- What are the long-term trends influencing Jordan’s unemployment?
- Structural issues like skill mismatches, demographic pressures, and external shocks keep unemployment elevated over the long run.
Final Takeaway
Jordan’s unemployment rate remains a stubborn macroeconomic challenge, requiring coordinated policy reforms and external stability to foster sustainable job growth and economic resilience.
This has been drafted with AI assistance and then thoroughly reviewed, refined, and approved by our human editorial team to ensure accuracy, and originality.
AMZN – Global consumer demand proxy impacting Jordan’s export sectors.
EURUSD – Regional trade and economic stability indicator.
BTCUSD – Risk sentiment gauge affecting emerging market capital flows.
TSLA – Reflects global manufacturing trends influencing Jordan’s industry.
USDCAD – Commodity price trends impacting Jordan’s inflation.
The unemployment rate for December 2025 stands at 21.40%, unchanged from the previous month and slightly below the 21.50% recorded in December 2024. Compared to the 12-month average of 21.40%, the rate shows a stable but elevated trend. This stability masks underlying labor market weaknesses, as the rate has hovered above 21% for over a year.
Historical comparisons highlight a modest improvement from the 22.30% peak in December 2023 but no significant downward momentum since. The persistence of this high unemployment rate underscores structural challenges in Jordan’s economy, including skill mismatches and limited private sector dynamism.