The Role of the Digital Economy in Reducing Unemployment Rates in Jordan: An Econometric Study for the Period (2000-2024)

Abstract

This study aimed to examine the role of the digital economy in reducing unemployment rates in Jordan during the period 2000–2024. It specifically analyzed the impact of several digital economy indicators—namely, mobile cellular subscriptions (per 100 people), fixed broadband subscriptions (per 100 people), the percentage of internet users in the total population, and e-commerce—on the unemployment rate in Jordan. The analysis employed the Canonical Cointegration Regression (CCR) method to estimate long-run relationships among the variables.
The results of the study revealed a statistically significant inverse relationship at the 5% significance level between the unemployment rate and each of the following indicators: mobile cellular subscriptions (per 100 people), fixed broadband subscriptions (per 100 people), and e-commerce. Conversely, a statistically significant positive relationship was found at the 5% significance level between the percentage of internet users in the population and the unemployment rate.
The study recommends enhancing and expanding digital and financial inclusion programs targeting underserved groups (such as youth, women, and residents of remote areas) to transform mobile phone proliferation into effective drivers of entrepreneurship and income generation. Furthermore, it is crucial to accelerate investment in high-speed fixed internet infrastructure and align it with a national strategy to attract high-value-added digital investments that create quality employment opportunities.