Casablanca – Morocco’s employment landscape continues to show solid job creation performance, according to data reviewed during a high-level government meeting held in Rabat on April 10, 2026, alongside assessments from international financial institutions. While employment indicators have improved in recent years, structural imbalances continue to limit the translation of economic growth into lower unemployment, particularly among young people and women.

The meeting, chaired by Head of Government Aziz Akhannouch, reviewed progress on the national employment roadmap. Official figures indicate that the Moroccan economy created around 850,000 jobs in non-agricultural sectors between 2021 and 2025, averaging approximately 170,000 jobs per year. In 2025 alone, about 233,000 jobs were created.

If the current momentum continues, projections suggest that total job creation could exceed 1,000,000 jobs by the end of 2026, excluding agricultural employment losses linked to prolonged drought conditions. This outlook reflects continued expansion in services, construction, and industry, supported by public investment and sectoral recovery.

Sector performance: tourism gains and agricultural recovery

Sectoral data shows uneven but generally positive performance across key parts of the economy. Agriculture recorded 365 million working days during the current season, marking a 7% increase compared to the previous agricultural campaign. This improvement helped stabilize rural employment after several years of climate-related pressure.

The tourism sector also exceeded expectations, generating 92,000 jobs compared to an initial target of 80,000. This performance reflects stronger international demand, rising investment in hospitality infrastructure, and the impact of major events supporting visitor inflows.

Construction, services, and industry remain the main contributors to non-agricultural job creation, although agriculture continues to play a critical role in rural employment despite its vulnerability to climate variability.

SMEs and investment support mechanisms

The government also reviewed support programs for very small, small, and medium-sized enterprises, which are considered a key driver of employment. A total of 170 project applications were submitted across sectors such as industry, hospitality, and food services. Of these, 21 projects were approved, representing total investments of around $32 million, with public support of approximately $5 million.

Policy discussions also focused on improving SME access to public procurement and strengthening their role in regional job creation, particularly in construction and housing-related activities. These efforts are part of broader reforms aimed at increasing private sector participation in employment generation.

Despite this progress, structural constraints remain, including limited access to credit, low productivity among micro-enterprises, and administrative barriers that continue to restrict business expansion.

Expansion of employment and training programs

Employment support policies have been expanded to include broader categories of job seekers, particularly young people without formal qualifications. Existing programs such as “Idmaj” (integration) and “Tahfiz” (motivation) have been extended, while a new apprenticeship-based initiative, “Tadarruj” (gradation) aims to integrate up to 100,000 trainees annually into the labor market.

This approach is intended to strengthen vocational training and improve alignment between skills development and labor market demand. Authorities have also emphasized the need to better connect education systems with economic needs, especially in technical and industrial sectors.

Efforts to reduce school dropout rates are also ongoing through the expansion of “Second Chance Schools” and the strengthening of “Pioneer” middle schools, aiming to improve long-term employability outcomes.

Women’s employment and social infrastructure

A key component of the employment roadmap is increasing female labor force participation, which remains significantly lower than male participation. The government has established 40 pilot childcare centers, with plans to add 20 more.

These centers are designed to reduce barriers to employment for women by supporting childcare needs and improving work-life balance, thereby encouraging higher participation in the formal labor market.

Macroeconomic context and employment mismatch

Morocco’s employment dynamics are unfolding within a relatively stable macroeconomic environment. According to international institutions, the country recorded GDP growth of about 4.9% in 2025, supported by infrastructure investment, agricultural recovery, and strong performance in services. Inflation remains low, foreign reserves are strong, and fiscal indicators have improved.

However, unemployment remains elevated at around 13%, with youth unemployment above 37% and female unemployment continuing to rise. This reflects a persistent disconnect between economic growth and labor market absorption.

Analysts identify several structural factors behind this gap. The dominance of micro-enterprises limits job creation capacity, while a mismatch persists between education outputs and labor market requirements. The agricultural sector continues to lose jobs due to mechanization and climate stress, while the public sector remains a major employer for graduates, reducing incentives for private sector employment.

Institutional recommendations and reform agenda

International institutions, including the IMF, the African Development Bank, and the World Bank, emphasize the need for deeper structural reforms. Key recommendations include improving labor market flexibility, strengthening vocational training systems, enhancing SME financing, reducing informality, and ensuring stronger evaluation of employment programs.

Additional priorities include expanding access to childcare, improving transport safety for women, and modernizing labor regulations to support more flexible forms of employment while strengthening social protection.

Despite strong job creation figures, the central challenge remains converting macroeconomic gains into inclusive, high-quality, and sustainable employment opportunities. The coming period will be critical in determining whether current reforms can close the gap between economic performance and labor market outcomes, particularly for young people, women, and rural populations.