BY: Hana Saada
Morocco- August 31st, 2023– The persistent challenge of youth unemployment has cast a cloud over the growth prospects of the Makhzen government, as data from the High Commission for Planning reveals a worrying decline in the youth employment rate. Over the past two decades, Morocco has grappled with inadequate growth rates and a shifting employment landscape, particularly impacting its young population. The Makhzen government’s ambitious targets to address this issue have met with limitations due to various economic factors, leading to growing concerns about the future of the nation’s youth workforce.
The High Commission for Planning’ statistics depict a downward trajectory in youth employment, with the youth employment rate plummeting from 42.8 percent in 2000 to 31.8 percent in the previous year. This decline highlights a disconcerting rise in youth unemployment by approximately three percentage points during the last decade, reaching a staggering 22.9 percent. Diving into the details, the adverse effects of unemployment are more pronounced among urban youth, women, and individuals with diplomas.
In the second quarter of this year, the overall unemployment rate in Morocco escalated to 12.4 percent, translating to a total of over 1.54 million unemployed individuals. This rise in unemployment comes at a time when economic growth remains fragile due to uncertainties stemming from drought and the global geopolitical landscape.
Behind the statistics lies a stark reality – the impact of unemployment is disproportionately borne by the country’s young population. The labor force participation rate among individuals aged 15 to 34 has dwindled from 53.5 percent to 41.2 percent over the past two decades.
Renowned agricultural sector expert, Mohammad al-Hakich, highlighted that the current growth trajectory fails to generate adequate employment opportunities. Additionally, the challenges posed by drought have resulted in a loss of livelihoods, particularly affecting rural women who engage in unpaid and unregistered labor. Al-Hakich noted that the agriculture-related repercussions of drought have contributed significantly to the surge in unemployment, as opportunities for rural youth to migrate to urban areas in lean years have dwindled. The stagnation of the real estate sector, which once absorbed this migration, has further compounded the issue, leaving the youth with fewer options.
Data from the High Commissioner for Planning underscores that unemployment affects women in the 15 to 34 age bracket more profoundly, with 32.7 percent experiencing unemployment compared to 19.8 percent among men. Urban youth have also faced higher unemployment rates, recording 29.9 percent in contrast to 10.7 percent among their rural counterparts.
Education levels play a pivotal role in the unemployment scenario. The report reveals that unemployment rates increase with higher academic qualifications, soaring to 40.3 percent among those with advanced degrees, which is twice the rate observed among those with intermediate degrees. Furthermore, the unemployment rate is five times higher among individuals without degrees, with a rate of 7.9 percent.
The High Commission for Planning emphasizes the low productivity of the national economy, leading to an overrepresentation of low-paying, unskilled jobs. This, in turn, has fueled the informal sector, which absorbs around two-thirds of the workforce, offering subpar wages.
Despite the government’s goal of generating one million jobs over five years, in line with the “Forsa” and “Urash” programs, the nation’ sluggish economic growth has hindered their successful implementation. Economic growth has averaged around 3 percent, far from the recommended 6 percent needed to absorb the growing youth labor force.
In the most exceptional scenarios, growth facilitates the generation of just 120,000 job opportunities, a figure significantly below the government’s annual commitment to establish 200,000 job opportunities. In addition, the working-age population experiences an annual increment of approximately 375,000 individuals.
