Morocco’s Workforce Under Strain as Unemployment Hits New Highs to 13.6%

Rabat – Morocco’s unemployment rate climbed to 13.6% in the third quarter of 2024, edging up slightly from the same period last year, according to a recent labor market report from the High Commission for Planning (HCP). 

The report shows unemployment inching up from 13.5% to 13.6% year-on-year, with rural areas experiencing a slight increase from 7% to 7.4%, while the urban rate held at 17%. 

Over the past year, the number of unemployed rose by 58.000 to reach 1.683 million, with 42.000 additional jobless in urban centers and 16.000 in rural areas. Youth unemployment (ages 15-24) climbed by 1.3 points to 39.5%, while unemployment among those aged 45 and older rose from 3.7% to 4.1%. The rate for women also increased, moving from 19.8% to 20.8%. 

Education levels appear to significantly influence employment trends. Unemployment rose by 2.3 points among those with technical or intermediate diplomas and by 0.5 points for individuals with upper-secondary education. In contrast, higher-education graduates saw the sharpest drop in unemployment, with their rate decreasing by 1.6 points, from 26.5% to 24.9%.

Read Also: Unemployment Soars to New Heights, Hits Nearly 14% as Drought Grips Morocco

Underemployment—referring to workers either employed fewer hours than they desire or in roles not fully utilizing their skills—also rose. The total number of underemployed individuals grew by 60,000, reaching 1.066 million. 

This includes an increase in urban underemployment from 523,000 to 590,000, while rural underemployment slightly declined from 482,000 to 476,000. Nationally, the underemployment rate rose from 9.6% to 10%, with urban areas increasing from 8.1% to 8.8%, while rural areas held steady at 12%.

The number of those underemployed due to insufficient hours rose from 501,000 to 584,000, increasing the rate from 4.8% to 5.5%. Conversely, individuals underemployed due to income inadequacy or mismatch between skills and current jobs decreased from 505,000 to 482,000, with the rate declining from 4.8% to 4.5%.

Underemployment saw the largest rise in the construction sector, increasing from 18.9% to 19.9%. The agriculture, forestry, and fishing sectors also experienced growth in underemployment, moving up from 11.2% to 11.9%.

In 2023, Morocco’s economy shed 157,000 jobs, with rural regions hit hardest, losing 198,000 positions. This decline pushed the national unemployment rate to 13%, marking a high not seen in over 20 years. Drought-ravaged agriculture, which employed nearly 28% of the workforce, was a primary factor behind these job losses, according to a report from HCP.

Unemployment in Morocco is reaching critical levels, with the recent data showing a rise that has left over 1.6 million people jobless. The rural economy, heavily impacted by drought, and sectors like construction and agriculture are particularly hard-hit, exacerbating job losses and underemployment. 

Youth and women face some of the highest unemployment rates, with young people aged 15–24 now nearing a staggering 40% unemployment. As the job market struggles to absorb a growing workforce, the economic and social consequences of this crisis are becoming increasingly severe.