Casablanca – Amid rising unemployment challenges, the Moroccan government has launched a comprehensive employment roadmap with a $1.44 billion budget for 2025. This initiative aims to boost job creation, address labor market inefficiencies, and support key economic sectors, particularly small businesses and agriculture.

With unemployment reaching 13.3% in 2024, the highest level since the 1990s, the government has prioritized labor market reforms to foster sustainable growth.

A multi-pillar strategy for job creation

The new employment roadmap is built around three core pillars:

  1. Stimulating investment and job creation – Supporting small and medium-sized enterprises (SMEs) and large-scale investments to expand employment opportunities.
  2. Reforming employment programs – Enhancing job placement services and vocational training, particularly for unskilled workers.
  3. Boosting rural employment – Providing financial and technical support to small farmers and rural workers to mitigate job losses in agriculture.

This initiative complements Morocco’s 2025 Finance Law, which seeks to redirect public resources toward high-employment sectors. It also aligns with ongoing efforts to increase economic resilience amid global uncertainties affecting household purchasing power and business competitiveness.

Addressing labor market challenges

Morocco faces significant labor market imbalances, particularly affecting youth and rural workers.

  • Youth unemployment (ages 15–24) exceeds 35%, with a stark divide between urban and rural areas.
  • The agriculture sector, impacted by seven consecutive years of drought, saw over 200,000 job losses in 2023 alone, exacerbating rural economic instability.

The government’s plan includes direct financial support and training programs to help small farmers and livestock breeders maintain and expand their activities. These measures aim to create more stable rural jobs and reduce migration pressures to cities.

Reforming employment programs and supporting SMEs

A key component of the roadmap is the revamp of ANAPEC (National Agency for Employment and Skills Promotion), Morocco’s primary job placement and vocational training agency.

  • ANAPEC will now expand its services to unskilled workers, offering tailored training programs to align with market demands.
  • This move seeks to bridge the gap between education and employment, a persistent challenge in Morocco, where 30–40% of unemployed individuals hold higher education degrees.

Another major focus is supporting small businesses, which account for 91% of formal employment.

  • Following the 2023 Investment Charter reform, the government is introducing new financial incentives, including:
    • Loan guarantees to help businesses expand.
    • Tax benefits for companies creating sustainable jobs.

Economic growth and regional development

Experts stress that tackling unemployment requires sustained economic growth. Morocco currently maintains a 4% annual growth rate, but economists argue that 6–7% growth is needed to generate enough jobs to absorb new labor market entrants.

One strategy to boost job creation is the regionalization of economic development. While economic activity is concentrated in Casablanca, Rabat, Tangier, and Marrakech, regions such as Souss-Massa and Tanger-Tétouan-Al Hoceima are emerging as new growth hubs due to their industrial and tourism potential.

The Mohammed VI Investment Fund is expected to play a key role in channeling capital into underdeveloped regions, promoting labor-intensive projects and helping distribute job opportunities more evenly across the country.

Challenges and the road ahead

Despite these ambitious plans, structural barriers remain.

  • Informal employment accounts for nearly 70% of Morocco’s workforce, limiting the reach of government programs.

Labor market rigidities, including regulatory constraints in the Labor Code, could slow job creation efforts.

Experts emphasize the need for greater coordination between economic and institutional actors to ensure effective policy implementation. Further clarity is required regarding the distribution of SME support and the specifics of ANAPEC’s reform.

Morocco’s $1.44 billion employment roadmap represents a bold step toward reducing unemployment and revitalizing the job market. By focusing on investment, workforce development, and rural job creation, the government aims to build a more resilient and inclusive economy. However, long-term success will depend on structural economic reforms, improved labor market flexibility, and sustained economic growth.