Morocco’s new generation faces steep human capital losses, World Bank says

Children born in Morocco today could lose up to 73% of their potential future earnings compared with peers in the best-performing countries at the same income level, according to a new World Bank report.

The 2026 Human Capital index Plus gave Morocco a score of 147, well below the global average of 186 and far behind high-income nations, which average 252 points.

The World Bank said the findings show structural weaknesses in Morocco’s health, education and labor systems.

The country scored 44 points in health and nutrition, 87 in education, and only 16 in labor and employment, making the job market the weakest link in building human capital.

Limited on-the-job training, high informal employment, and slow pathways to more productive work are cited as key factors holding back skill development and future earnings.

Regionally, Morocco falls below the Middle East, North Africa, Afghanistan, and Pakistan average of 157 points.

The World Bank estimates that if countries in this region matched the best-performing peers at their income level, future labor earnings could rise 58%–76%.

Education quality, rather than years of schooling alone, is a major driver of these gaps. Even with 87 points in the education component, Morocco’s results lag because learning outcomes remain weak.

Labor markets compound the problem as nearly half of human capital develops on the job, but opportunities for structured training and advancement are limited.

Women also face persistent disadvantages, with a roughly 20-point gap favoring men, largely due to employment outcomes.

The World Bank warned that malnutrition, low literacy, and insufficient workforce skills continue to threaten growth.

The report calls for policies extending beyond schools and hospitals to homes, neighborhoods, and workplaces with an emphasis on early childhood development, vocational training, childcare support, and reforms to create higher-quality jobs.