Report: Morocco’s job market at critical crossroads

Report: Morocco’s job market at critical crossroads
Sunday 28 September 2025 - 14:00

Morocco’s labor market is at a “critical stage” that combines promising opportunities with deep structural risks, according to a new report released in late September by the African Center for Strategic and Digital Studies, based in Tangier.

The report, titled “The Moroccan Labor Market Between the Fragility of the Present and the Opportunities of Tomorrow,” highlights both sectoral achievements, such as growth in the automotive industry and preparations for hosting the 2030 World Cup, and alarming vulnerabilities.

It warns that Morocco’s growth model remains dangerously dependent on European markets and that many jobs created in construction, tourism and services are temporary and unstable.

“While the national economy celebrates sectoral successes, a closer look reveals worrying fragility,” the report said. It cautions that the country’s reliance on European demand leaves its industries exposed to protectionist and environmental policies, while World Cup-related economic activity risks turning into a “bubble” that could burst after 2030, leaving thousands unemployed.

Structural challenges

The study pointed to long-term global forces such as artificial intelligence, climate change and shifting work patterns as critical factors shaping Morocco’s labor outlook. Official unemployment stood at 13.3% nationwide in 2025, rising to 37% among youth and 20% among women. Female participation in the labor force remains low at 18%, while only 43% of the working-age population is active.

Two-thirds of workers in the informal sector lack social protection, the report noted, and geographic inequalities remain stark, with most jobs concentrated in coastal cities while inland regions are left behind.

More than 80% of Moroccan automotive exports go to France and Spain, exposing the sector to European Union policies such as carbon taxes and the transition to electric vehicles. Similarly, 80% of Morocco’s call center industry depends on the French market, raising concerns about new European regulations.

Strategic recommendations

The center proposed a three-tier strategy:

  • Short-term: Develop a national plan for the post-2030 period, diversify markets toward Africa and the Americas, establish a retraining fund for call center workers, and create a legal framework to protect gig economy workers.

  • Medium-term: Reform labor laws, overhaul vocational and digital training, boost local manufacturing of strategic components, and encourage trade union innovation.

  • Long-term: Pilot universal basic income, explore a four-day work week, and build a national lifelong learning system.

Possible scenarios

Looking ahead, the report outlined three potential scenarios for Morocco’s labor market:

  • Breakthrough: Successful integration of green and digital transitions with education reform could create 1 million high-value jobs by 2040.

  • Crisis: Continued dependence on Europe could trigger a surge in unemployment after 2030.

  • Middle path: Partial diversification without structural reform would perpetuate chronic fragility.

Despite the challenges, the report stressed opportunities in artificial intelligence, the green economy and Morocco’s advanced port infrastructure, which could transform the country into a logistics hub if paired with smart investment in digitalization.

“The choice is stark,” the report concluded. “Morocco can either remain hostage to external fluctuations or shape its future with confidence through diversification, local value creation and investment in human capital. This is a decisive moment to forge a new social contract for sustainable development and for future generations.”

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