
Morocco's unemployment rate is a complex issue with multiple factors at play. The country's youth unemployment rate is particularly high, with over 30% of young people aged 15-24 unemployed.
This is partly due to a mismatch between the skills young people acquire in school and the skills required by the job market. Many young Moroccans graduate with degrees in fields such as engineering or business, but struggle to find jobs that match their qualifications.
The education system in Morocco is also a contributing factor. While education is compulsory until the age of 15, many students drop out of school after completing their secondary education, which can limit their future job prospects.
The country's economic growth rate has been slow in recent years, which has also contributed to high unemployment rates.
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Morocco's Unemployment Rate
Morocco's unemployment rate has been a concern for the country, with fluctuations in recent years. In the first quarter of this year, the national unemployment rate slightly declined, dropping from 13.7% to 13.3%.
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According to the High Commission for Planning, the total number of unemployed Moroccans now stands at 1.63 million. The change was driven by a reduction of 15,000 unemployed individuals, resulting from a drop of 40,000 in urban areas (16.6%) and an increase of 25,000 in rural areas (7.3%).
The unemployment rate has been affected by various factors, including age and geographic distribution. Unemployment among young people aged 15–24 rose by 1.8 points, climbing from 35.9% to 37.7%. In contrast, rates fell across other age groups: by 0.8 points among those aged 25–34 (from 22% to 21.2%), by 0.5 points among those aged 35–44 (from 8% to 7.5%), and by 0.6 points among people aged 45 and above (from 4.5% to 3.9%).
The labor force participation rate also showed an increase, rising from 42.6% to 42.9% in the first quarter of this year. This uptick was due to a 1.4% increase in the working-age population (15 years and older) and a 2% rise in the active population within the same age group.
Here is a breakdown of the unemployment rates by region:
The highest unemployment rates were recorded in the Oriental region (25.2%) and the southern regions (23.8%).
Migration rising
Migration is a pressing issue in Morocco, with many young people considering emigration to European Union countries. This is driven by the high unemployment rates in Morocco, particularly among youth.
Women and youth face significant challenges in the job market, with women recording a sharp rise in unemployment to 19.9%. Youth unemployment is also alarmingly high, with 35.8% of individuals aged 15-24 and 21.9% of those aged 25-34 unable to find work.
The European Union's stance on migration has created a trade-off for Morocco, with pressure to curb irregular migration and repatriate undocumented migrants. This is highlighted by the ILO's director-general, Gilbert Houngbo, who noted that youth who don't receive a good education find it difficult to secure good jobs.
Italy has proposed establishing temporary shelters within Maghreb countries, including Morocco, to process migration and asylum requests. This could potentially ease the pressure on European countries to deal with irregular migration from Morocco.
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Labor Market Issues
Morocco's labor market is facing significant challenges, with unemployment rates rising across the country. The unemployment rate for young people aged 15 to 24 increased from 33.6% to 36.1% between the second quarter of 2023 and the second quarter of 2024.
Women are disproportionately affected by unemployment, with a sharp rise in unemployment rates, reaching 19.9%, up from 17.7% last year. This is a stark reminder of the deep-seated inequalities in the labor market.
The government has launched an ambitious plan to create 250,000 new jobs in both the public and private sectors, with a focus on public works programmes, support for innovative start-ups, ecological agriculture, and carbon-free industries.
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Jobs, COVID, Climate
Jobs, COVID, and Climate are major factors affecting Morocco's labor market. The country's unemployment rate has risen by four percentage points from its pre-pandemic level of 9.4%.
COVID-19 cost Morocco around 500,000 jobs. Many of these jobs have not yet been fully recovered, despite the government injecting over $13 billion into an economic recovery plan.
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Climate change has also taken a toll on the labor market. Between 2023 and 2024, the labor market lost 157,000 jobs due to a shortage of rainfall and weak agricultural production.
The share of agriculture in total jobs has decreased significantly. It dropped from 37.8% in 2008 to 42.8% in 2000, and further decreased to 27.8% by 2023.
Youth unemployment is a major concern in Morocco. Central bank governor Abdellatif Jouahri described it as "the dark spot in overall economic performance."
The economic growth rate of 3.5% has been criticized as insufficient to create new jobs or curb the rise in unemployment, especially for first-time labor market entrants.
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Women and Youth Face Greater Challenges
Women recorded a sharp rise in unemployment, reaching 19.9%, up from 17.7% last year, making it a pressing issue that requires attention.
Youth unemployment also remains alarmingly high, with 35.8% of individuals aged 15-24 and 21.9% of those aged 25-34 unable to find work.
In Morocco, the number of those working in underemployment has reached around 1 million people, most of whom are women, highlighting the need for targeted efforts to create sustainable, inclusive employment opportunities.
The unemployment rate for people aged 25 to 34 has risen from 19.8% to 21.4% in one year, while the rate for those aged 35 to 44 has remained relatively stable, moving from 7.2% to 7.3%.
The unemployment rate for young people aged 15 to 24 increased from 33.6% to 36.1% between the second quarter of 2023 and the second quarter of 2024, making it a significant concern.
Here's a breakdown of the unemployment rates by age group:
This data shows that young people face significant challenges in finding employment, making it essential to implement policies that support their entry into the workforce.
The transition from education to employment can be challenging, and it's essential to provide young people with the necessary skills and support to succeed in the labor market.
According to the ILO, one in five young people globally, aged 15 to 29, falls into the NEET category, which accounts for approximately 20.4% of the global population, highlighting the need for a global response to this issue.
In Morocco, the NEET category accounts for a significant proportion of young people, making it a pressing issue that requires attention and action.
The government's plan to create 250,000 new jobs in both the public and private sectors is a step in the right direction, but it's essential to ensure that these jobs are sustainable and inclusive.
By providing young people with the necessary skills and support, we can help them succeed in the labor market and reduce the number of those working in underemployment.
Economic Outlook
Morocco's economic outlook is a mixed bag, with some promising signs but also significant challenges to overcome. The country's unemployment rate has been a major concern, with over 10% of the population out of work.
The government has been actively working to reduce unemployment, investing in infrastructure and job creation programs. However, the impact of these efforts has been limited, with the unemployment rate remaining stubbornly high.
One bright spot is the growth of the service sector, which has been driving economic expansion and creating new job opportunities. The sector has seen a significant increase in recent years, with a growth rate of 5% in 2020.
Despite this progress, Morocco still faces significant economic challenges, including a large informal economy and a lack of skilled workers. These issues have hindered the country's ability to achieve sustainable economic growth.
The government has implemented policies aimed at promoting entrepreneurship and innovation, such as tax incentives and support for small and medium-sized enterprises. These initiatives have shown promise, but more needs to be done to address the underlying issues driving unemployment.
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