The Private Sector's Role in limiting unemployment in Jordan

Abstract

This study is aimed to define unemployment, and private sector, to know more about both, and to study the role of the private sector in limiting unemployment in Jordan in special. In a particular year the level of unemployment is determined by the level of aggregate demand for the goods and services which a country produces .if demand higher this reduces unemployment so the demand side approach to unemployment .so to expand demand through higher budget deficits and lower interest rates. But unfortunately unemployment cannot be reduced indefinitely by expand demand .for eventually the economy will run into bottle necks and labor shortage that point employers will increasingly raise wages to attract labor and there will all be increased union demands for higher wages .so demand will have to stop rising-either of its own or through policy action. Thus our ability to reduce unemployment is limited by the labor shortages which begin to appear as unemployment falls are features of the “supply-side of the economy and it is they which determine how unemployment can fall without creating inflationary pressures while demand management is important the key issue for employment policy is how reduce the level of unemployment at which inflationary pressures appear.