Casablanca – Morocco’s labor market entered 2026 with a significant shift in how employment trends are measured and interpreted, revealing a more complex reality behind headline figures. According to the latest data from the High Commission for Planning, the unemployment rate stood at 10.8% in the first quarter of 2026. However, new indicators introduced under the updated Labor Force Survey (EMO 2026) show that the challenges facing the labor market extend well beyond this traditional measure.

The EMO 2026 survey represents a major methodological overhaul, aligning Morocco’s labor statistics with international standards set by the International Labour Organization. It replaces the previous National Employment Survey and introduces stricter definitions of employment and unemployment. Under this framework, employment includes only paid or profit-generating activities, while unemployment is limited to individuals without work who are available and actively seeking a job. As a result, comparisons with earlier data series require caution.

A stable unemployment rate with significant disparities

At first glance, the unemployment rate of 10.8% suggests relative stability. Yet this figure masks substantial disparities across regions, genders, and age groups. Urban areas continue to bear the highest burden, with unemployment reaching 13.5%, compared to 6.1% in rural areas.

Gender gaps remain pronounced. Women face an unemployment rate of 16.1%, significantly higher than the 9.4% recorded for men. Beyond unemployment, women also show much lower participation in the labor market, reflecting structural barriers to economic inclusion.

Young people are particularly affected. Individuals aged 15 to 24 face an unemployment rate of 29.2%, making them the most vulnerable group. Those aged 25 to 34 also experience elevated levels at 16.1%. These figures highlight ongoing difficulties in transitioning from education to employment and point to structural mismatches in the labor market.

In absolute terms, the number of unemployed people reached approximately 1.253 million during the first quarter, with nearly 80% living in urban areas. Women account for just over 31% of the unemployed population.

Low participation and uneven access to employment

Beyond unemployment, the data underscores a broader structural issue: limited participation in the labor market. Morocco’s working-age population reached 27.8 million people, but only 11.6 million were considered part of the labor force, resulting in a participation rate of 41.8%.

This rate reveals a stark gender divide. While 66.4% of men participate in the labor market, only 17.5% of women do. Women represent just 21% of the labor force but make up more than 70% of those outside it, pointing to a significant untapped potential in the economy.

On the employment side, around 10.36 million people held paid jobs in the first quarter, corresponding to an employment rate of 37.3%. Rural areas show higher employment rates (40.7%) compared to urban areas (35.5%), largely due to the role of agriculture in absorbing labor.

Sectoral distribution confirms the dominance of services, which account for 49.1% of total employment. Agriculture, forestry, and fishing follow with 24.5%, while industry represents 13.6% and construction 12.7%. This structure reflects a dual economy, with service-driven urban centers and agriculture-based rural regions.

A broader measure reveals deeper labor market strain

One of the most significant contributions of the EMO 2026 survey is the introduction of expanded indicators that capture labor underutilization. These go beyond traditional unemployment to include time-related underemployment and the potential labor force.

In this context, about 671,000 workers were classified as underemployed, meaning they worked fewer hours than they were willing or able to. Additionally, 884,000 individuals were identified as part of the potential labor force—people who are not actively seeking work but are available and willing to work.

When combining unemployment and underemployment, the rate of insufficient employment rises to 16.6%. Including the potential labor force increases this measure further, with a combined rate of 17.1%.

The most comprehensive indicator, the composite rate of labor underutilization, reaches 22.5% nationwide. This means that more than one in five individuals in the extended labor force is either unemployed, underemployed, or insufficiently integrated into the labor market.

Youth and women face the highest levels of vulnerability

These broader indicators highlight the disproportionate impact of labor market pressures on specific groups. Among young people aged 15 to 24, the composite underutilization rate climbs to 45.3%, indicating that nearly half face some form of employment difficulty.

Women are similarly affected, with a composite rate of 31.1%. These figures underscore the overlapping challenges of low participation, higher unemployment, and increased exposure to underemployment.

Regional inequalities persist

The labor market also remains highly uneven across regions. Some areas, such as Dakhla-Oued Ed-Dahab, record relatively low unemployment rates of around 5.7% and higher participation levels. In contrast, regions like Laayoune-Sakia El Hamra report unemployment as high as 20.3%.

Other regions, including the Oriental and Guelmim-Oued Noun, also experience elevated unemployment rates, reflecting persistent territorial disparities. Meanwhile, major economic hubs such as Casablanca-Settat and Rabat-Sale-Kenitra continue to show unemployment rates above or near the national average.

Toward a more comprehensive understanding of employment challenges

The introduction of the EMO 2026 survey marks a turning point in how Morocco’s labor market is analyzed. By expanding the scope beyond unemployment to include underemployment and labor market detachment, the new framework provides a more detailed and demanding assessment of economic realities.

While the headline unemployment rate remains an important benchmark, the broader indicators reveal deeper structural challenges. These include limited job creation relative to population growth, unequal access to employment, and disparities affecting women, youth, and certain regions.

The data points to the need for more targeted and structural responses. Addressing labor market challenges in Morocco will likely require policies that not only create jobs but also improve job quality, increase participation—especially among women—and ensure more balanced regional development.