Tough economy drives more Moroccans—especially women—into informal work

Economic hardship is pushing a growing number of Moroccans into informal employment, with women disproportionately affected, according to a new report from Morocco’s High Commission for Planning (HCP).

The 2023–2024 report revealed that 68.3% of informal production units were created out of economic necessity. Among women, that figure climbs to 71.9%, compared to 65.1% of men.

Juggling work and family responsibilities remains a significant challenge for women in the informal sector. About 30% of women managing informal businesses reported difficulty balancing work and home life, while only 8.1% of men reported the same.

Despite stepping into informal entrepreneurship, most of these individuals were not new to the workforce. Nearly 79% had been previously employed, primarily in construction and public works. However, there is a stark gender divide: 82.4% of men had prior work experience, compared to just 36.2% of women.

Informal businesses overwhelmingly rely on personal resources. About 72% were funded through personal savings, while only 1.1% of owners secured bank loans. Just 2.1% of these businesses have a bank account, and 97.9% of owners said they never attempted to apply for a loan—citing reluctance to borrow, fears of ineligibility, and the burden of legal and collateral requirements.

The share of Moroccan households owning informal production units has seen a slight decline, dropping from 15.5% in 2014 to 14.3% in 2023. Urban areas saw a reduction from 17.2% to 15.6%, and rural areas from 12.8% to 11%. However, informal entrepreneurship is more prevalent in larger households; nearly one in four families with eight or more members runs an informal business.

In 2023, informal employment accounted for 33.1% of all non-agricultural jobs, a slight decline from 2014. While informal jobs in services and industry dropped, employment in informal trade and construction sectors increased.

Urban centers remain the main hubs of informal employment, with the Casablanca-Settat region leading at over 23%, followed by Marrakech-Safi and Rabat-Salé-Kénitra.

Working conditions in the informal sector remain precarious. Only 10% of informal workers are salaried, and among them, 60% lack formal written contracts. More than 77% found their jobs through personal or family connections, underlining the informal sector’s reliance on social networks rather than formal hiring practices.