Morocco’s economy is improving, with better growth rates boosting its national finances, but the trends are taking time to reach the labour market.
In the year's first half, the number of jobs fell by 86,000. That took the unemployment rate to 12.4%, leaving it above pre-pandemic levels. It was at 8% in 2019.
It means that the country’s most skilled job seekers are in demand abroad, while at home, high unemployment is stoking concern about the blend of skills Morocco’s education system is creating.
In turn, that has led to calls for fundamental reform at universities and colleges, to better equip workers for the private sector.
The economic strains currently being felt were started by Covid, which hit the country’s economy hard. In 2020, Morocco’s GDP fell by 7% and 500,000 jobs were lost.
GDP bounced back in 2021, growing by 8% after a $12bn injection of bank financing. But 2022 brought Vladimir Putin’s invasion of Ukraine, inflation and rising interest rates, and growth slipped, to 1.3%.
That decline also came amid the more profound impact of climate change in North Africa, not least via the impact of water scarcity on the agriculture sector, which employs almost three-tenths of the workforce.
The government expects growth of 3.7% in 2024, compared to 3.4% by the end of 2023.
High unemployment
One of the effects of this volatile run on Morocco’s economy has been high unemployment. The number of job seekers hit 1.5 million in the second quarter of 2023, up by 156,000 year-on-year, an increase of 11%.
The jobless rate is worse in cities – at 16% – compared with 5.7% in rural areas. It is worse for young people and women. Over a third of the workforce under 24 is out of work, with a similar proportion of female unemployment.
Graduate unemployment is running at over 19%. This has motivated qualified, young people to look for work abroad.