A collaborative study by the Jordan Chamber of Industry and the International Labor Organization (ILO) has revealed that the textile sector contributes 41.7 percent of the total added value to Jordan's national economy. The research, titled "The Contribution of the Textile Industry to the National Economy," breaks down the added value into capital (22.8 percent), compensation for workers (17 percent), and government revenues from taxes and fees (19 percent). The study emphasizes that the sector, being labor-intensive, creates both direct and indirect employment opportunities, providing at least one additional job in other sectors for every seven opportunities it generates. Ihab Qadri, the representative for leather and textile industries at the Jordan Chamber of Industry, unveiled these findings during the launch ceremony on Tuesday. He highlighted significant growth in the sector's added value rate, reaching 42 percent in 2018 from 36 percent in 2011. Qadri noted that this percentage ranks among the highest in the manufacturing sectors and may have seen a slight uptick considering the performance trends over the past five years. He cited a rise in the sector's production from approximately $1.3 billion in 2010 to over $2.5 billion and an increase in Jordanian employment within the sector from 8,000 to 26,000 workers. This growth substantially augmented the total value of compensation paid, forming a significant component of the added value. Additionally, Qadri pointed to a notable surge in the sector's exports from $1.1 billion in 2010 to over $2.3 billion in subsequent years. The sector also contributed directly to the state treasury, providing more than 13 piasters for each dinar of production. Expressing the sector's ambitions, Qadri underscored its potential role in reducing unemployment, enhancing income levels, stimulating economic growth, and aligning with the economic modernization vision. He called for a robust public-private partnership, emphasizing the need for vertical and horizontal integration and skilled labor alignment with priority initiatives. The Secretary-General of the Ministry of Labor, Farouk Hadidi, lauded the textile sector as strategic to the national economy, exporting to diverse markets and employing over 76,000 workers, predominantly women, thereby advancing government efforts to economically empower women. Hadidi also praised the Jordan Chamber of Industry's effort in conducting the study through a rigorous scientific methodology, urging the private sector to collaborate with the government to reap national economic benefits. Tariq Abu Qaoud, the director of the ILO's "Better Work" program in Jordan, stressed the importance of the study in shaping future policy and initiatives to foster the textile sector and the broader economy. He expressed the "Better Work" program's commitment to formulating a prosperous future for the sector by identifying opportunities, gauging its added value, and positively impacting economic growth through job creation. In conclusion, Abu Qaoud stated that such studies play an instrumental role in guiding policymakers towards devising targeted strategies that capitalize on the sector's strengths and address its challenges, thereby paving the way for Jordan's enhanced economic future.
Source: Jordan News Agency