Morocco faces growing labor shortages despite unemployment rate above 12%

Morocco is facing a growing labor shortage across several key economic sectors despite unemployment remaining stubbornly high, highlighting deep structural imbalances in the country’s labor market, according to economists and industry stakeholders.

The paradox has become increasingly visible in sectors such as manufacturing and agriculture, where employers report difficulties recruiting and retaining workers even as national unemployment hovers between 12% and 13%.

In the northern city of Tangier, several automotive wiring and cable manufacturing companies have struggled to attract workers, particularly younger job seekers. Industry operators attribute the problem to working conditions and wages that many workers consider insufficient given the rising cost of living in one of Morocco’s fastest-growing urban centers.

The agricultural sector is facing similar challenges. Farmers across different regions have reported increasing difficulties finding workers to maintain crops and assist during harvest seasons, when labor demand typically peaks.

Abdesslam Seddiki, a former minister of employment and economist, said the issue requires deeper analysis before definitive conclusions can be drawn.

“Much of what is currently being discussed consists of explanatory hypotheses that still require field research and comprehensive studies,” Seddiki said.

He argued that Morocco’s labor market does not operate according to the principles of a fully transparent market and lacks an effective public intermediary capable of efficiently connecting job seekers with employers.

As a result, many workers continue to rely on informal and traditional methods of finding employment, which can create mismatches between available jobs and available workers.

“The fact that a company announces vacancies does not necessarily mean there are no candidates,” Seddiki said. “Likewise, the fact that young people cannot find employment does not automatically indicate that there are no job opportunities.”

Seddiki noted that the National Employment Observatory was established to anticipate labor market needs and provide information to people in training programs or seeking employment. However, he pointed to broader labor market dysfunctions, including situations where companies report difficulties finding qualified workers while unemployment remains elevated, including among university and vocational school graduates.

He also said the National Agency for Employment and Skills Promotion (ANAPEC), despite undergoing reforms in recent years, still does not cover all regions of the country. Historically focused on university graduates, the agency has only gradually expanded its services to other categories of job seekers.

According to Seddiki, wages and working conditions remain among the most significant factors behind labor shortages.

In cities such as Tangier, workers may see little economic benefit in accepting jobs that pay close to the legal minimum wage, particularly when positions offer limited social protection. In such cases, some individuals may choose informal work or self-employment opportunities that provide greater flexibility or higher earnings.

The same dynamics are affecting agriculture, where physically demanding work, long hours and daily wage arrangements often discourage workers seeking greater income stability.

Economic analyst Mohamed Jadri said the situation reflects a widening mismatch between labor supply and labor demand.

“The agricultural sector has experienced significant difficulties in securing sufficient labor during recent harvest seasons,” Jadri said. He cited examples of farmers who were forced to sell olive harvests before collection because they could not find enough workers to gather the crops.

Jadri attributed part of the labor shortage to migration from rural areas to cities following successive years of drought, as well as workers shifting to other occupations. He also suggested that some beneficiaries of social support programs may hesitate to enter formal employment out of concern that they could lose access to benefits.

The labor shortage extends beyond agriculture, he said. Construction and public works companies have increasingly relied on workers from sub-Saharan African countries to fill labor gaps, while Morocco’s healthcare sector continues to face shortages of doctors, nurses and support staff.

Working conditions and compensation levels also play a major role, according to Jadri.

“Many young people are becoming more selective and are looking for jobs that guarantee a minimum level of professional dignity and decent income,” he said.

The trend is particularly visible in certain manufacturing industries, including cable production, where some young workers are opting for alternative forms of employment. Others are increasingly turning to informal-sector activities, including delivery services and work through digital transportation and service platforms.

Jadri said the situation underscores the need for comprehensive labor market reforms, including improvements in working conditions, stronger vocational training programs and mechanisms that better align social support programs with workforce integration efforts.

Economists argue that improving transparency, strengthening labor market governance and accelerating the integration of the informal economy into the formal sector will be essential to reducing labor market distortions and achieving a better balance between employers’ needs and available workers.