Casablanca – The Moroccan labor market faced significant challenges in 2024, with the unemployment rate rising to 13.3%, up from 13% in 2023. According to the latest report from the High Commission for Planning (HCP), the number of unemployed individuals increased by 58,000, reaching 1.638 million. The rise was more pronounced in urban areas, where unemployment climbed from 16.8% to 16.9%, while in rural areas, it increased from 6.3% to 6.8%.

Demographic and sectoral trends

Certain groups continue to experience higher levels of unemployment. Youth aged 15 to 24 recorded an unemployment rate of 36.7%, while the rate among degree holders reached 19.6%, and among women, it stood at 19.4%. The services sector, which remains the largest employer, contributed the most to job creation with 160,000 new positions. The industrial sector followed with 46,000 new jobs, while the construction sector added 13,000. However, the agricultural sector suffered a significant setback, losing 137,000 jobs due to persistent drought conditions.

Economic growth and job market impact

Despite Morocco’s economy creating 82,000 jobs in 2024, it was not sufficient to offset the growing labor force. The loss of 80,000 jobs in rural areas, particularly in non-remunerated employment, exacerbated the situation. The country’s economic growth was limited to 3% in 2024, largely due to the impact of drought on agricultural productivity. While forecasts indicate a potential growth rate of 4.6% in 2025, job creation remains inadequate compared to the 300,000 young individuals entering the labor market annually.

Government response and policy measures

The Moroccan government has recognized the urgency of the unemployment crisis and allocated $144 million in the 2025 Finance Law to stimulate job creation. The plan includes boosting investment in high-employment sectors, supporting small and medium-sized enterprises (SMEs), and strengthening active labor market programs. Additionally, the Ministry of Employment has announced new initiatives focusing on job market mediation, integration of youth and women, and training programs for individuals without formal qualifications.

While these measures aim to alleviate the unemployment crisis, their effectiveness will depend on sustained economic growth, private sector participation, and the successful implementation of policy reforms. Morocco’s labor market challenges remain significant, requiring continuous efforts to bridge the gap between job demand and supply.