Overview of Morocco's Employment Challenges
In Morocco, the economic growth observed over the years has not translated effectively into job creation, leading to a persistent challenge in reducing unemployment rates sustainably. This phenomenon can largely be attributed to the nature of the growth itself, which remains heavily reliant on public investment while the private sector struggles to generate stable employment opportunities. The disparity between economic growth and job creation raises significant concerns about the ability of Morocco's economy to convert growth into sustainable, long-term employment.
Key Insights
Between 2006 and 2024, excluding the years 2020 and 2021, the relationship between non-agricultural growth and non-agricultural job creation in Morocco has shown to be weak, with an average yield of approximately 34,600 non-agricultural jobs created per point of non-agricultural growth. Moreover, the elasticity of non-agricultural employment to non-agricultural growth has decreased from 0.79 during the period of 2006-2015 to 0.53 from 2016 to 2024 (excluding 2020-2021). This indicates that while growth does create jobs, the intensity and quality of these jobs are declining, resulting in a reliance on temporary, sub-contracted, or informal work, which fails to provide the stability required for a thriving workforce.
The public investment that supports Morocco's growth primarily focuses on infrastructure projects such as roads, dams, and ports. While these initiatives do stimulate economic activity, they often lead to temporary employment rather than creating long-lasting job opportunities. Many jobs generated during the execution of these projects vanish once the projects are complete, and a significant portion of employment remains informal, lacking necessary protections and stability.
To effectively combat unemployment, it is essential to focus on strengthening the private sector, which has been identified as the missing engine of growth necessary for transforming economic advancements into formal, stable job opportunities. Despite some progress, the Moroccan private sector remains predominantly comprised of small, under-capitalized businesses that struggle to navigate complex supply chains and often face payment delays that hinder their ability to grow and hire. The World Bank has noted that the aggregate elasticity of employment to growth in Morocco was just 0.27 from 2000 to 2018, indicating that a mere 1% increase in economic activity resulted in only a 0.27% rise in employment. This stark contrast highlights the urgent need for a more productive private sector capable of creating formal, enduring jobs.
In conclusion, while Morocco's economy shows signs of growth, the fundamental structure of this growth—largely driven by public investment—has not yielded the stable employment necessary to absorb the growing workforce effectively. To address this, the role of the state must evolve from being the primary growth engine to facilitating an environment conducive to private investment and sustainable job creation. By fostering a robust private sector, Morocco can work towards a more balanced and effective approach to economic growth that benefits the entire population.
As reported by medias24.com.
