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Economy

Drought Casts Long Shadow Over Morocco's Labor Market in the 1st quarter of 2024

Friday 03 May 2024 - 09:10

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In a sobering revelation, the latest report from the High Commission for Planning (HCP) has painted a grim picture of Morocco's labor market during the first quarter of 2024, with the lingering effects of drought taking a severe toll on employment prospects, particularly in rural areas.

According to the report, the Moroccan labor market experienced a net loss of 80,000 jobs, with rural regions bearing the brunt of this impact, shedding a staggering 159,000 positions, predominantly in the unpaid sector. In contrast, urban areas witnessed a modest gain of 78,000 new jobs.

The HCP's findings underscore the disproportionate impact of the drought on the agriculture, forestry, and fishing sectors, which collectively saw a significant decrease of 206,000 jobs. However, other sectors exhibited positive dynamics, with the services industry generating 63,000 new positions, followed by the manufacturing and crafts sector with 34,000 jobs, and the construction sector contributing 25,000 new roles.

Alarmingly, the volume of unemployment surged, with an additional 96,000 individuals joining the ranks of the jobless, bringing the national total to a staggering 1.645 million unemployed individuals. The unemployment rate climbed from 12.9% to 13.7%, with rural areas experiencing a more pronounced rise, from 5.7% to 6.8%, compared to urban centers, where the rate increased from 17.1% to 17.6%. The HCP highlighted the disproportionate impact of unemployment on the youth aged 15 to 24 (35.9%), graduates (20.3%), and women (20.1%).

Furthermore, the report revealed that the employed population in a situation of underemployment stood at 576,000 individuals, representing a rate of 5.6%. An additional category of underemployment, linked to insufficient income or a mismatch between education and employment, affected 493,000 individuals (4.8%). In total, underemployment impacted 1.069 million people, with the overall rate remaining stagnant at 10.3% nationwide.

The HCP's report also noted a 0.5 percentage point decline in the activity rate, dropping from 43.1% to 42.6%, and a 0.9 percentage point decrease in the employment rate, from 37.6% to 36.7% at the national level. This trend was more pronounced in rural areas than in urban centers.

Regional Disparities

The report shed light on regional disparities, with five regions accounting for 72.4% of the active population aged 15 and above. Casablanca-Settat stood out with 22.6% of the active population, followed by Rabat-Salé-Kénitra and Marrakech-Safi. Four regions exhibited activity rates higher than the national average, notably Tanger-Tétouan-Al Hoceima and Casablanca-Settat.

In its concluding remarks, the HCP acknowledged that the challenges facing Morocco's labor market remain significant, particularly in terms of job creation and combating underemployment. The ongoing drought continues to have a direct impact on the rural economy, while urban areas demonstrate signs of resilience with the creation of new employment opportunities.