Rabat – Morocco's economic growth is increasingly failing to translate into new job creation, a concerning trend highlighted by the Moroccan Economic, Social, and Environmental Council (CESE) in its annual report for 2025, as reported by the newspaper L’Economiste. Despite advancements in infrastructure modernization and industrial diversification, the kingdom is grappling with a chronic inability to generate sufficient employment opportunities for its population.
The CESE identifies a significant shift in the investment structure as the primary cause of this issue. Value creation is becoming increasingly concentrated in capital-intensive industries such as the automotive and aerospace sectors, as well as protected service sectors. In contrast, traditionally labor-intensive sectors like textiles and clothing are continuously losing their economic significance, leading to a worrying imbalance in job generation.
The report also reveals a deep divide within the business landscape, particularly highlighting stagnation in the small and medium-sized enterprise (SME) sector. According to data cited in the report, between 2017 and 2022, approximately 99.8% of micro-enterprises and 96.1% of small businesses failed to expand. Public funding programs established in recent years have achieved only moderate success due to significant structural barriers that persist.
Moreover, the system is further weakened by the prevalence of a vast informal sector. Previous reports from MAGHREB-POST have frequently discussed the challenges this poses for formalizing and improving transparency within the Moroccan labor market. Without targeted modernization of smaller enterprises and closer integration of local SMEs with export-oriented market leaders, the social impact of economic growth is likely to remain minimal in the future.
As reported by maghreb-post.de.
