Morocco Unveils MAD 14 Billion Plan to Combat 21% Unemployment Rate

Wednesday 01 January 2025 - 09:50

By: Dakir Madiha

Morocco Unveils MAD 14 Billion Plan to Combat 21% Unemployment Rate

Morocco's economic landscape faces significant challenges as Employment Minister Younes Sekkouri addressed the pressing issue of unemployment, which has reached 21%, during a recent parliamentary session. The situation is particularly concerning given that approximately 900,000 people—two-thirds of the unemployed population—lack formal qualifications, presenting a unique challenge for traditional employment programs.

In response to these challenges, the government has outlined comprehensive measures in the 2025 Finance Act, allocating MAD 14 billion to support small and medium enterprises (SMEs) and rural employment initiatives. The strategy encompasses three main pillars: expanding vocational training through 67 specialized centers, implementing apprenticeship programs targeting 100,000 individuals, and launching targeted employment initiatives backed by a MAD 1 billion budget.

The rural sector remains a primary focus, with 55 of the vocational training centers dedicated to agricultural education. Additionally, new projects are being developed specifically for rural residents without diplomas, aiming to diversify their employment opportunities beyond the agricultural sector.

To stimulate hiring, the government has implemented a MAD 1,500 monthly employment subsidy per worker. This initiative has already shown promising results, facilitating the employment of 22,000 individuals across 1,900 companies. However, budget limitations constrain the program's expansion potential.

A significant development includes the planned overhaul of the National Agency for the Promotion of Employment and Skills (ANAPEC), supported by a MAD 1 billion investment. This restructuring aims to generate 200,000 jobs annually and address the current 1.6 million job deficit through a comprehensive national employment plan.

The parliamentary session, attended by 45 members, highlighted the complexity of Morocco's unemployment crisis, particularly in remote regions struggling to attract investment. While current initiatives demonstrate the government's commitment to addressing these challenges, Minister Sekkouri acknowledged that existing measures fall short of meeting the needs of the nation's unemployed population.

The government's multi-faceted approach reflects an understanding of the evolving labor market demands and the need for targeted interventions, particularly for underqualified individuals and rural populations. However, the scale of the challenge requires sustained effort and innovative solutions to achieve meaningful impact in reducing unemployment rates.