Morocco’s unemployment rate drops slightly to 12.8% but challenges persist

Tuesday 05 August 2025 - 09:20

By: Dakir Madiha

Morocco’s unemployment rate drops slightly to 12.8% but challenges persist

Morocco’s unemployment rate fell to 12.8% in the second quarter of 2025, down from 13.1% during the same period last year, according to figures released by the High Commission for Planning (HCP). This marks the first decline after several quarters of rising unemployment, driven largely by job creation in urban areas.

Urban job growth offsets rural losses

Urban areas contributed significantly to the improvement, adding 114,000 new jobs. This reduced urban unemployment from 16.7% to 16.4%. The construction sector led job creation with 74,000 new positions, followed by the services sector with 35,000 jobs, and the industrial sector, which added 10,000 posts. Nationally, 132,000 paid jobs were created, indicating a modest strengthening of the formal job market.

In contrast, rural areas experienced a loss of 107,000 jobs, primarily due to cuts in the agricultural sector, which shed 108,000 positions. While rural unemployment dropped to 6.2%, this decline reflects people exiting the job market rather than finding new employment. Many rural residents either stopped searching for jobs or migrated to urban centers.

Women and youth face disproportionate challenges

Despite the overall improvement, significant challenges remain. Women recorded a sharp rise in unemployment, reaching 19.9%, up from 17.7% last year. Youth unemployment also remains alarmingly high, with 35.8% of individuals aged 15-24 and 21.9% of those aged 25-34 unable to find work.

Regional disparities and underemployment

The unemployment rate varies widely across Morocco's regions. Southern regions reported the highest unemployment at 25.8%, followed by the Oriental region at 21.1%. Meanwhile, Draa-Tafilalet recorded the lowest rate at 6.4%, and Marrakech-Safi followed with 7.5%.

Underemployment continues to rise, affecting 1.15 million people compared to 1.04 million previously. This highlights the growing number of individuals working in precarious or insufficiently paid positions, even as the overall unemployment rate declines.

A mixed picture for Morocco’s labor market

While the slight national decline in unemployment offers hope, the data reveal deep inequalities between urban and rural areas, men and women, and different age groups. Tackling these disparities will require targeted efforts to create sustainable, inclusive employment opportunities across all sectors and regions.