Morocco’s Job Market: A Decade of Decline and the Struggle for Opportunity
A recent OECD report paints a concerning picture of Morocco’s job market, revealing a significant decline in job creation over the past decade. Between 2010 and 2019, the Moroccan economy generated an average of just 72,000 new jobs annually, a stark 50% drop compared to the 144,000 jobs created per year in the preceding decade. This slowdown raises serious questions about the country’s ability to absorb its growing working-age population and provide meaningful opportunities for its citizens.
The report highlights a critical mismatch between job creation and the demands of a growing workforce. The number of new jobs simply isn’t keeping pace with the increasing number of Moroccans entering the workforce. This is particularly troubling given the existing challenges of unemployment and underemployment in the country. According to World Bank data, Morocco’s unemployment rate hovered around 12% in 2019, with youth unemployment significantly higher. This scarcity of opportunities is further compounded by a lack of quality jobs, especially for less-educated workers who represent a substantial portion of the active population – nearly half lack any formal qualifications. This segment of the workforce is particularly vulnerable to precarious employment and exploitation.
The OECD report also points to a disconnect between investment and job creation across various sectors. While capital-intensive industries have experienced stronger growth, this hasn’t translated into a corresponding increase in employment opportunities. For instance, despite growth in high-tech manufacturing, job creation within this sector remains weak. This suggests a need for policies that encourage investment in labor-intensive sectors and promote skills development to bridge the gap between available jobs and the skills of the workforce. Similar challenges are seen in other developing economies, where the focus on automation and technological advancement can sometimes exacerbate existing inequalities in the labor market.
The situation for women and young people is particularly dire. Women’s labor force participation rate stands at a mere 20%, down from 25% two decades ago and significantly lower than the average for other emerging economies. This highlights the persistent gender inequalities that limit women’s access to economic opportunities. Among Moroccan youth (aged 15-24), only a quarter participate in the labor market, while another quarter are classified as NEET (Not in Education, Employment, or Training), a stark indicator of the challenges facing young people in transitioning to productive adulthood. Urban youth unemployment reaches a staggering 47%, a figure that underscores the urgent need for targeted interventions.
Adding to these challenges is the growing informal sector, a persistent issue in the Moroccan economy. Many workers leaving agriculture in search of better prospects end up in low-skilled, informal service jobs, often in trade or real estate, characterized by low added value and limited opportunities for advancement. Estimates suggest the informal sector accounts for up to 80% of total employment and a third of output, highlighting the need for policies that promote formalization and create a more inclusive labor market.
Even for highly educated workers, the private sector struggles to meet the demand for jobs. Roughly one-third of employees with higher education degrees (baccalaureate and above) work in the public sector. Furthermore, university graduates represent approximately 40% of the unemployed, indicating a skills mismatch between the education system and the needs of the private sector. This calls for reforms in education and training to better equip graduates with the skills demanded by the market.
Addressing these complex challenges requires a multi-faceted approach. Investing in education and skills development, promoting entrepreneurship and private sector growth, and strengthening social safety nets are crucial steps towards creating a more dynamic and inclusive labor market that offers opportunities for all Moroccans. Furthermore, policies that address gender inequality and support youth employment are essential for unlocking the full potential of the Moroccan economy.
