Doha – In response to Morocco’s deteriorating employment situation, Head of Government Aziz Akhannouch chaired a high-level meeting in Rabat on December 10, to discuss a new roadmap aimed at boosting job creation.

The meeting brought together an extensive coalition of government officials from different sectors, along with representatives from the High Commission for Planning (HCP), the National Social Security Fund (CNSS), and the Office of Vocational Training and Labor Promotion.

Recent HCP data paints a grim picture of Morocco’s employment landscape.

Unemployment reached 13.6% in the third quarter of 2024, with the number of unemployed increasing by 58,000 to reach 1.683 million. Urban areas face a particularly severe situation with unemployment at 17%, while rural regions report 7.4%.

According to the government press release, the roadmap will be announced “in the coming days” to reinforce sector dynamics, aligned with King Mohammed VI’s directives for economic and social development.

During the meeting, Akhannouch said that “the government closely monitors changes in employment sector dynamics” and that it will work “to operationalize a range of measures with impact on the ground in both short and medium terms.”

He called for enhanced mobilization and coordination among stakeholders to ensure better convergence and improve government intervention efficiency.

The government has allocated an unprecedented budget of MAD 14 billion ($1.4 billion) for 2025 to promote employment opportunities.

Officials noted that the roadmap will focus on creating decent employment opportunities across all social categories in both urban and rural areas, despite current economic constraints.

The initiative will address several critical challenges, including water scarcity management, rural development concerns, and practical measures to support small and medium-sized enterprises as key drivers of job creation. The plan also emphasizes training programs to accelerate labor market integration.

Youth unemployment and the urban-rural divide

The employment crisis has hit young Moroccans especially hard, with youth unemployment (ages 15-24) climbing to 39.5%. Women’s unemployment has also worsened, rising from 19.8% to 20.8%.

Education levels significantly impact employment prospects, with technical diploma holders seeing a 2.3-point increase in unemployment, while higher-education graduates experienced a slight improvement, with their rate decreasing from 26.5% to 24.9%.

Underemployment has emerged as another critical concern, affecting 1.066 million workers – an increase of 60,000. The underemployment rate rose from 9.6% to 10% nationally, with urban areas seeing an increase from 8.1% to 8.8%.

The construction sector witnessed the highest rise in underemployment, from 18.9% to 19.9%, followed by agriculture, forestry, and fishing sectors, which increased from 11.2% to 11.9%.

Failed campaign promises

The current employment crisis starkly contrasts with the ambitious promises made during the 2021 election campaign. Akhannouch’s National Rally of Independents (RNI) party had pledged to create one million direct jobs over five years through various initiatives, including 250,000 positions through public works projects.

The party’s campaign specifically targeted youth employment through programs like “Forsa,” which promised 250,000 financing packages for entrepreneurship, associative, environmental, cultural, and sports projects at zero interest rates.

However, the reality has been markedly different. Between 2022 and 2023, the economy lost 157,000 jobs, with unemployment rising from 11.8% to 13% – a high not seen in over 20 years.

The situation was particularly severe in rural areas, which lost 198,000 positions. This was largely due to drought’s impact on the agricultural sector, which employs approximately 28% of the workforce.

The employment crisis reflects deeper economic challenges. After achieving only 1.3% growth in 2022, the economy is expected to grow by 2.9% in 2023 – figures that fall significantly short of the targets set in Morocco’s new development model.

The agriculture-dependent nature of this growth adds to its vulnerability, particularly given increasing drought frequencies.

Despite government initiatives such as the “Awrach” and “Forsa” programs, the structural mismatch between available skills and market needs continues to hinder job creation.

The new roadmap’s success will largely depend on its ability to address these fundamental issues while navigating the challenges of climate vulnerability and economic diversification.