Morocco adds jobs in 2024, but still lags behind pre-COVID employment levels

Morocco’s economy added 82,000 jobs in 2024, according to Bank Al-Maghrib’s annual report, but the country is still struggling to return to the employment levels seen before the pandemic.

While non-agricultural sectors performed well, generating a net gain of 219,000 jobs, the agricultural sector suffered a major blow, losing 137,000 jobs last year. 

This trend adds to a longer-term issue: since 2019, the agriculture sector has lost around one million jobs. 

Other sectors have not been able to compensate for these losses despite over 275,000 new job seekers entering the labor market every year.

Unemployment remains a growing concern. The jobless rate climbed to 13.3% in 2024. 

Labor market participation also remains weak, with the activity rate standing at just 43.5%, and only 19.1% among women.

The report pointed out that government spending rose in 2024 due to large-scale reforms and infrastructure projects. 

These included wage hikes and initiatives aimed at supporting households’ purchasing power. 

Some of this pressure was offset by better-than-expected tax revenues, thanks to tax law reforms, stronger collection efforts, and a voluntary tax regularization program for individuals.

The budget deficit continued to narrow, reaching 3.9% of GDP (excluding privatization revenues), faster than initially projected.

This was supported by MAD 35.3 billion raised through innovative financing tools and savings from the government’s gradual removal of butane gas subsidies. 

Public debt also dropped by one percentage point to 67% of GDP.

Still, Morocco’s trade deficit remains high at 19.1% of GDP. Imports rose by 6.4%, largely due to increased purchases of consumer and capital goods. 

On the bright side, the energy bill shrank as global prices declined. 

Exports grew by 6.1%, driven by strong phosphate sales and continued growth in the car manufacturing industry.