A new economic study has found that labor-market conditions in Morocco’s municipalities are influenced not only by local factors but also by developments in neighboring areas, highlighting strong links between unemployment, employment opportunities and economic activity across administrative borders.
Published in Networks and Spatial Economics, the study used official data from Morocco’s High Commission for Planning, including the 2024 population and housing census and the 2023-2024 national economic establishments map.
Researchers compared municipalities using indicators including business density, the share of industrial and service activities, stable employment, labor absorption capacity, basic education levels and the presence of public institutions.
The analysis grouped municipalities into five main categories. The largest groups were 586 municipalities with relatively strong service activity and 580 classified as economically vulnerable, with low business density, limited capacity to absorb workers and weaker basic education indicators.
Another 252 municipalities had relatively higher education levels but only moderate economic activity. A further 82 were identified as “integrated economic hubs,” recording the highest levels of business density, stable jobs, labor absorption and education.
The fifth group comprised 23 municipalities with a particularly strong presence of public institutions and administrations. The indicator measuring that presence was nearly six times the national average, while private-sector activity was comparatively weaker. Seventeen municipalities were excluded from the classification because of their isolation within the study’s neighborhood network.
The study also found a significant spatial relationship in unemployment. Municipalities with high unemployment tended to be surrounded by areas with similarly high rates, while low-unemployment areas showed a similar pattern.
The estimated spatial effect was 0.548, meaning a one-percentage-point increase in average unemployment in neighboring municipalities was associated with an increase of about 0.55 percentage points in the municipality concerned, after accounting for other factors included in the model.
Researchers also found links between education, industrial activity and public-sector presence across neighboring municipalities. They cautioned, however, that these statistical relationships do not establish direct causation.
Because the study relies on 2024 data and did not have direct information on daily commuting patterns, its five groups were based on similarities in economic and social characteristics and geographic relationships rather than actual worker movements.
The findings suggest that employment policies may need to be designed around interconnected groups of municipalities rather than individual administrative boundaries. Measures could include improving infrastructure and training in vulnerable areas, while expanding transport, housing and job opportunities suited to local skills around major economic hubs.
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