The national economy continues to evolve, but the labor market between 2023 and 2024 paints a striking picture of contrasts—both by sector and region. On the surface, the creation of 82,000 new jobs seems like a positive step. Yet, a deeper dive reveals ongoing disparities, with urban areas thriving while rural regions grapple with job losses.
Urban expansion, rural decline
According to the latest report from the High Commission for Planning (HCP), urban centers added 162,000 jobs, in sharp contrast to the rural areas that saw an alarming reduction of 80,000 positions. This pattern underscores a growing trend: the urbanization of economic opportunities. Cities are pulling in resources and talent, leaving rural regions in economic limbo.
Formal, paid employment showed notable growth, with 177,000 new positions, mainly concentrated in cities. This reflects an expanding organized labor sector and some improvements in formal job conditions. On the flip side, unpaid jobs—often tied to precarious agricultural work—dropped by 95,000, a decline linked to internal migration and a struggling agricultural sector hampered by climate and market instability.
The rise of the service sector
Services remain the driving force in job creation, contributing a remarkable 160,000 new positions in 2024. Sub-sectors such as commerce (51,000 jobs), community services (44,000 jobs), and financial or technical services (39,000 jobs) led the charge. The increasing dominance of the service sector highlights a shift towards a service-based economy, now employing nearly half of the nation’s active workforce at 49.4%.
Industry also saw growth, albeit at a smaller scale, with 46,000 new jobs—bolstered by investments in industrial transformation and technology. However, construction added only 13,000 positions, while agriculture, forestry, and fishing faced a harsh downturn, shedding 137,000 jobs. These sectoral imbalances highlight structural challenges, particularly for primary industries that struggle to compete with urban-focused service and industrial sectors.
Rising unemployment and labor instability
The overall job market has faced setbacks. Unemployment swelled by 58,000, bringing the total to 1.64 million job seekers nationwide and pushing the unemployment rate to 13.3%, up 0.3% from the previous year. Youth (15-24 years), graduates, and women remain the hardest hit, with unemployment rates at 36.7%, 19.6%, and 19.4% respectively.
Additionally, there is a troubling trend of short-term unemployment. In 2024, 37.1% of jobless individuals had been unemployed for less than a year, compared to 33.3% the year prior. This suggests growing instability, with more workers cycling rapidly in and out of jobs. Furthermore, over half of those unemployed have prior work experience, underlining the challenges of job retention in a volatile market.
Underemployment also rose, reaching 1.08 million people in 2024, up from 1.04 million in 2023. The rural workforce has been disproportionately affected, with the underemployment rate climbing from 11.6% to 12.2%. This trend is driven by low-paying, unstable jobs that fail to provide sufficient hours or income to match workers’ qualifications.
Regional disparities: The economic divide
The nation’s economic activity is highly concentrated. Just five regions—Casablanca-Settat, Rabat-Salé-Kénitra, Marrakech-Safi, Tanger-Tétouan-Al Hoceïma, and Fès-Meknès—account for 72.4% of employed workers. However, the highest unemployment rates plague the southern and Oriental regions, where jobless rates soar to 22.2% and 20.9% respectively. This glaring regional inequality calls for a more balanced approach to economic development aimed at reducing territorial disparities.
Social protections lag in rural areas
Access to social protections remains uneven across the country. While 46.7% of employees benefit from job-related health insurance, coverage rates vary significantly depending on location. Urban workers are far more likely to be insured than their rural counterparts. This gap highlights broader social and economic polarization that policymakers must address through expanded social safety nets and targeted rural initiatives.
Looking forward, the employment outlook remains uncertain. Strengthening the labor market will require targeted strategies—especially to revitalize rural economies, combat youth unemployment, and improve job quality. The coming years will be pivotal as the country seeks to navigate these structural challenges and foster more inclusive, sustainable growth.
