HCP report shows rise in unemployment, but census data tells a different story

Morocco’s unemployment rate has gone up slightly, rising from 13% in 2023 to 13.3% in 2024, according to the High Commission for Planning (HCP). But this figure is far lower than the 21.3% unemployment rate reported in the recent census, showing a big gap between the two.

The number of unemployed people grew by 58,000, bringing the total to 1.638 million across the country.

Mohamed Jadri, an economist, said that the difference between the two reports comes down to how the data is collected. The latest report is based on scientific methods that ensure that the results are reliable and realistic.

On the other hand, the census relies on answers given by survey respondents. The question asked is often broad—whether a person is working or not. But someone who says they are unemployed may actually be working in the informal sector.

Another factor is that some people have become hesitant to declare that they are employed, fearing potential tax obligations.

Because of this, Jadri believes the 13% unemployment rate is the most accurate. He points out that reports from the High Commission for Planning (HCP) are based on scientific research, unlike the census, which depends mainly on self-reported data. 

The HCP report revealed that urban unemployment rate edged up from 16.8% to 16.9%, while the rural rate saw a bigger jump from 6.3% to 6.8%. 

The job market remains tough for young people aged 15-24, with an unemployment rate of 36.7%, as well as for graduates (19.6%) and women (19.4%).

Despite these challenges, the Moroccan economy managed to create 82,000 jobs in 2024. This was driven by an increase of 162,000 jobs in cities, though the countryside saw a loss of 80,000 positions. 

The situation was worse in 2023, when 157,000 jobs were lost overall.

Most of the job growth came from paid employment, which rose by 177,000 positions, while unpaid work dropped by 95,000. 

The services sector led the way in job creation, adding 160,000 new positions, followed by industry with 46,000 and construction with 13,000. 

The agriculture, forestry, and fishing sector suffered a major setback, shedding 137,000 jobs.

Underemployment also increased. The number of people working fewer hours than they’d like or earning too little rose from 1.043 million to 1.082 million. 

This issue is more pronounced in rural areas, where the underemployment rate jumped from 11.6% to 12.2%, while in urban areas, it moved slightly from 8.7% to 8.9%.

Looking at overall employment trends, the percentage of working-age people either employed or looking for work remained steady at 43.5%. 

There was a small drop in rural areas, where the rate slipped from 47.3% to 46.5%, while in cities, it rose slightly from 41.8% to 42%. 

Women’s participation in the labor market increased to 19.1%, though men’s participation dipped to 68.6%.

The employment rate itself fell slightly from 38% to 37.7% nationwide, with a sharper decline in rural areas, while urban employment remained almost unchanged. 

Men saw a bigger decline in employment than women, with the male employment rate falling by 0.4 percentage points, compared to a 0.2 percentage point drop for women.