Unemployment: Moroccan Economy Lost More Jobs Than It Created in Q2 2017

Unemployment is on the rise in Morocco. During the second quarter of 2017, the unemployment rate increased from 9.1 to 9.3 percent nationally and from 13.4 to 14 percent in urban areas, according to the figures published by the High Commission for Planning (HCP).

With an increase in the working population by 107,000, the number of unemployed individuals grew by 33,000 at the national level, bringing the total number of unemployed Moroccans to 1,123,000.

The HCP noted an increase of 45,000 unemployed individual in urban areas, while rural areas witnessed a decline in the unemployment rate from 3.5 to 3.2 percent, about 12,000 workers. However, the HCP pointed out that unemployment rate remains high among women, rising from 12.7 to 13.2 percent.

The situation was also highly critical in two other categories: graduates and young people. According to HCP figures, the highest unemployment rates were among 15-24 year-olds, from 23.2 to 23.5 percent, and among those with a diploma, from 16.3 to 17 percent.

The underemployed population also witnessed an increase by 21,000, to 1,086,000. According to the data analyzed, “the volume of employed persons in [conditions of] underemployment increased from 531,000 to 537,000 persons in urban areas, and 535,000 to 549,000 in the countryside” notes the HCP.

The rate of underemployment rose by 0.1 percent from the second quarter of 2016, from 9.8 to 9.9 percent at the national level, from 9 to 9.1 percent in urban areas, and from 10.7 to 10.8 percent in rural areas.

Regarding gender distribution, the High Commission noted that “the underemployment rate reached 11.4 percent among men and 5.2 percent among women.”

In its note, the HCP also indicated that the Moroccan economy created 74,000 jobs between the second quarter of 2016 and the same period of 2017, against a loss of 26,000 a year earlier, stressing that “the volume of employment rose from 10,884,000 to 10,958,000 people.”

However this increase in job creation did not affect the employment rate, which declined by 0.5 points at the national level, from 43.4 to 42.9 percent. This rate fell in urban areas from 37.2 to 36.4 percent and increased in rural areas from 53.7 to 54.2 percent.

With regard to the sectoral contribution to net job creation, employment in the agriculture, forestry, and fishing sectors increased by 52,000 new posts at the national level, representing an increase of 1.3 percent between the second quarter of 2016 and the same period of 2017, against losses of 175,000 in 2016.

Depending on the place of residence, 3,000 jobs were created in urban areas and 49,000 were in rural areas.

The services sector has seen an increase in job creation of 19,000 jobs at the national level (7,000 jobs in urban areas and 12,000 in rural areas), after an average annual increase of 60,000 jobs in the last three years, said the HCP.

As for the construction sector, it created 7,000 jobs at the national level, 2,000 in urban areas, and 5,000 in rural areas during the same period. “The average annual job creation in this sector was in the order of 24,000 jobs in the last three years,” the HCP wrote.

The industry sector, including crafts sector saw the sharpest decline in job creation. The High Commissioner noted that “there was a loss of 4,000 jobs (exclusively in rural areas), after an average annual increase of 14,000 over the last three years.”

Source: BNA