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Morocco Reaches Record-Breaking Unemployment Rate of 12.7%

November 3, 2020

Morocco’s unemployment rate has maintained its growth, reaching 12.7% in the third quarter of 2020, from July to September. In the previous quarter, the unemployment rate broke the highest record since 2001 when it reached 12.3%.

By annual comparison, Morocco’s unemployment rate increased by 3.3 points. In the third quarter of 2019, it stood at 9.4%. The unemployment rate remains higher in Moroccan urban centers compared to rural areas. In cities, the unemployment rate rose from 12.7% in 2019 to 16.5% in 2020. Meanwhile, the rate in rural areas witnessed an annual increase from 4.5% to 6.8%.

Youth unemployment

Unemployment in Morocco remains most prevalent among young people aged 15 to 24, with 32.3% unemployed. Additionally, the unemployment rate among university graduates in Morocco is 18.7%. By gender, the unemployment rate is higher among women (17.6%) compared to men (11.4%).

Overall, the total number of unemployed Moroccans increased by 368,000 between the third quarter of 2019 and the same period in 2020. It went from 1,114,000 to 1,482,000, recording a 33% annual increase. Morocco’s High Commission for Planning (HCP) announced the new unemployment rate in its report on the domestic job market’s evolution in the third quarter of 2020. The HCP published the report on November 3.

Over half a million lost jobs

Between the third quarter of 2019 and the same period in 2020, the Moroccan economy lost 581,000 jobs, including 237,000 positions in cities and 344,000 in rural areas. The lost jobs are mainly attributed to the suspension of several economic activities due to the COVID-19 pandemic. The services sector lost the highest number of jobs between 2019 and 2020.

Over the past 12 months, the tertiary sector lost 260,000 positions, including 196,000 in urban centers and 64,000 in rural areas. The figure represents 5.2% of the sector’s overall jobs. The primary sector, mainly concerned with agriculture and fisheries, lost 258,000 jobs in total, while the industrial sector lost 61,000 positions.

Prevalent underemployment

Underemployment is also a prevalent challenge in the Moroccan economy. Underemployment occurs when a person does not work full time or takes a job that does not reflect their actual training and financial needs. According to the report, 1,182,000 Moroccans are underemployed, including 627,000 in cities and 556,000 in rural regions. Morocco’s national underemployment rate stands at 11.6%. It varies from 10.5% in urban centers to 13.3% in rural areas.

Territorial disparities

The HCP report highlighted significant territorial disparities in terms of unemployment rates.

The Oriental region, in northeastern Morocco, has the highest unemployment rate in the country, at 21.2%, followed by the southern regions (19.6%).

Three other regions recorded an unemployment rate that exceeds the national average: Casablanca-Settat (14.7%), Draa-Tafilalet (14%), and Fez-Meknes (12.9%).

Meanwhile, the regions with the lowest unemployment rates are Beni Mellal-Khenifra and Marrakech-Safi, with 5.9% and 7.8%, respectively.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Morocco’s GDP to Shrink by 2 per cent in 2020

May 13, 2020

As the International Monetary Fund (IMF) declares that the global Gross Domestic Product (GDP) is expected to tank by 3 per cent this year, a distribution of that shows many countries will record negative growths while others will see substantially dropped growths. One of those whose economies will record a drop is Morocco. Reports released today show that the Moroccan economy will decline by 2 percent in 2020 because of the economic impact of the coronavirus pandemic, but a 4 percent rebound is expected in 2021, according to the latest forecast by the European Bank for Reconstruction and Development (EBRD). The latest edition of the EBRD Regional Economic Prospects report says that the slowdown will be driven by a sharp decline in tourism, measures to contain the spread of the pandemic, a likely poor harvest, a recession in Europe and lower commodity prices.Growth could be sustained by non-agricultural growth, particularly mining. Morocco is the world’s second-largest producer of phosphate after China.

In the EBRD southern and eastern Mediterranean region, the negative impact of the coronavirus is expected to be seen in the tourism sector, a decline in domestic demand due to containment measures, a fall in demand from the main trading partners and a slowdown in foreign direct investment.On average, the economies of the region are expected to shrink by 0.8 percent in 2020 before rebounding with growth of 4.8 percent in 2021. Jordan, Morocco and Tunisia are expected to contract this year, while Egypt is projected to report a small growth rate of 0.5 percent. Lebanon, which had already fallen into recession in 2018 and 2019, is likely to see an especially sharp fall of 11 percent in 2020. Economies across the EBRD regions may contract on average by 3.5 percent this year, with a rebound of 4.8 percent possible in 2021, the report said, warning that the projections are subject to “unprecedented uncertainty”.

The report assumes a modest impact of the crisis on the long‐term trajectory of economic output, with growth resuming towards the end of the third quarter, but potentially significant longer-term economic, political and social effects. “If social distancing remains in place for much longer than anticipated, the recession may be much deeper, with the 2019 levels of output per capita not attained again for years to come,” the report said.

Across the EBRD regions, containment measures have affected domestic demand and supply. External shocks include a sharp drop in commodity prices, weighing on commodity exporters, disruption to global value chains, a collapse in tourism and a drop in remittances.

Kelechi Deca