Expanding Childcare Access in Jordan: A Key to Boosting Female Workforce Participation

A World Bank report highlights that expanding affordable childcare in Jordan could boost female labor force participation by up to 7.3 percentage points, enhancing economic growth and creating up to 60,000 caregiver jobs. The study emphasizes the need for policy reforms to improve childcare access and quality, addressing high costs and operational challenges.

A new report by the World Bank, in collaboration with the Mashreq Gender Facility and the governments of Canada and Norway, has highlighted the significant impact that expanding access to affordable quality childcare could have on labor market outcomes in Jordan. With female labor force participation (FLFP) at a mere 15 percent compared to regional and global averages of 20 percent and 53 percent respectively, the study indicates that providing free childcare could increase women’s labor force participation by up to 7.3 percentage points. The research assesses the supply and demand of formal childcare services in Jordan through a mixed-methods approach, including national spatial analysis, surveys of childcare providers, a demand-side assessment of mothers with children under five, and an employer survey of private sector companies mandated by law to provide childcare support. It also encompasses a comprehensive legal review.

Current State of Childcare Services in Jordan

The study identifies six types of nurseries in Jordan: private center-based, non-profit center-based, workplace-based in public institutions, workplace-based in public schools, workplace-based in private institutions, and home-based. Currently, the total capacity of licensed childcare facilities in Jordan serves less than 3 percent of the 1.48 million children under five. Urban areas boast a higher number of facilities, yet there remains a significant mismatch between supply and demand in various regions. High costs and inconvenient locations further limit families' access to nurseries, particularly those from low-income neighborhoods. In Amman, center-based facilities charge nearly double compared to those in other governorates, with up to 20 percent of families struggling to pay the fees.

Challenges Faced by Working Mothers

Most childcare facilities cater to children aged two to four, with home-based nurseries providing the most operational flexibility. Many mothers rely on family support only sporadically, handling 60 to 85 percent of childcare responsibilities themselves. A striking 43 percent of women surveyed reported leaving paid employment due to childcare obligations, and 12 percent left to care for another family member. The study also reveals that women who are employed, more educated, and from higher-income households are more likely to use childcare services and receive regular assistance with their children. Social norms in Jordan strongly influence childcare decisions, with a prevailing expectation that family, rather than nurseries, should provide childcare support. Nonetheless, over one-third of the surveyed women expressed a preference for private childcare services if location and cost were not prohibitive, appreciating structured learning activities and enhanced security measures offered by private nurseries.

High Operational Costs for Childcare Providers

Operational costs for nurseries are particularly high for private and workplace-based facilities, with salaries and rent comprising the largest portions of total operating expenses. Most nurseries are primarily financed through private funding, as bank loans constitute only 14 percent of initial funding. The financial viability of new private nurseries is challenging, with most requiring around two years to break even. Despite legal mandates, many private sector employers do not provide childcare support, citing a lack of awareness and senior management backing as major barriers. However, employers indicated a willingness to establish nurseries if a substantial number of employees requested it or if the government provided financial assistance.

Policy Recommendations for Improving Childcare Access

The report offers several recommendations for policy and programmatic actions to address these challenges. These include strengthening the institutional framework to ensure national-level policy and system coherence, enhancing families' access to affordable childcare by developing diverse provision models, and focusing on vulnerable households. Furthermore, it suggests incentivizing sector growth and financial support for the establishment and operation of nurseries, improving the quality of childcare services, and addressing informational asymmetries and social norms to promote the uptake of childcare services.

Economic Benefits of Female Labor Force Participation

Female labor force participation is a critical element for economic growth and a key component of Jordan’s reform agenda. Removing barriers that restrict women from entering the labor market could significantly boost the country's economic growth. Global studies suggest that equal participation of men and women in the economy could add up to US$28 trillion, or 26 percent, to the annual global gross domestic product (GDP) by 2025. In the Middle East and North Africa region, this could average 20 percent. In Jordan, transformative investment in childcare policies could result in an average increase in GDP of USD2.51 for every USD1 spent and raise women's employment rate from 11 to 19 percent by 2035.

The report highlights the benefits of family-friendly policies for businesses, including increased labor productivity, reduced absenteeism, and retention of skilled and diverse employees. Documented cases in Jordan, such as Amin Kawar and Sons and Estarta Solutions, demonstrate positive business outcomes from providing flexible work options and childcare support. As such, expanding access to childcare services in Jordan has the potential to create up to 60,000 caregiver jobs if just 25 percent of the current service gap is addressed. This initiative could significantly increase female labor force participation and contribute to the country's economic growth and development.