Government plans to make employment its next big priority, but experts say its not enough

Head of Government, Aziz Akhannouch, announced Monday that the government’s priorities will center on employment, as the nation’s unemployment rate moved in 2023 to its highest levels since 2001.

The government plans to revamp employment laws, particularly those concerning labor and strike regulations. Akhannouch said that the revision of legislation aims to promote stability and harmony within businesses. 

However, according to economist Amine Sami, simply revising legislation won’t be enough.

Sami said that the government should implement effective strategies to decrease unemployment rates and give more importance to the agricultural sector. 

“The government should provide financial support, technical consultation and work more on implementing the Green Generation Plan to create a middle class in rural areas. This will reduce rural migration to cities, as well as direct investments towards rural areas to create a sustainable local economy,” the economist suggested.

Sami said it’s time to employ artificial intelligence technologies in agriculture, especially given the impacts of climate change and the water crisis. 

“AI would enhance and develop Moroccan agriculture and the socio-economic sector, particularly cooperatives and agricultural associations, leading to the creation of new job opportunities and economic momentum,” explained Sami.

Besides the agriculture sector, Sami suggested that the government focus on supporting emerging tech startups to develop local technological solutions for social problems. 

This step will transform startups into productive economic opportunities while preserving natural and environmental resources.

While it’s important to create local businesses, the economist also suggested that the regions should enhance territorial marketing to attract investment, thus creating a conducive business environment and more job opportunities. 

The economist urged Moroccan citizens to support and purchase Moroccan-made products to further contribute to the growth and development of entrepreneurship and improve their services.

 Economist Mohamed Jedri said that the government should invest in the private sector, especially since Morocco registers a yearly influx of 300,000 to 400,000 young job seekers. 

“To combat this trend and create more job opportunities, it’s important to invest in the private sector, particularly in small and medium-sized enterprises,” he asserted. 

Jedri explained that these businesses require specialized support, funding, and measures to eradicate corruption and foster a conducive operating environment.

Jedri suggested aiming for economic growth rates of 4% to 6%. However, Morocco’s current growth in the employment sector hovers around 1% to 2%, creating only 50,000 to 60,000 new job opportunities. 

In 2023, the country generated a meager 41,000 job positions.

Jedri pointed out the significant challenges facing the national economy in light of the past COVID-19 pandemic and the current drought. 

“The COVID-19 pandemic caused a severe blow to our economy, resulting in the loss of 600,000 jobs,” Jedri said.

The economist added that the agricultural sector suffered greatly due to drought conditions, leading to the loss of over 198,000 job positions in 2023 alone, pointing out the challenge of water stress in Morocco. 

“The scarcity of water negatively impacts workers in the agricultural sector, rendering them unable to produce effectively amidst drought conditions,” he observed.

Jedri stressed the urgent need for short-term and sustainable solutions, particularly in the agricultural sector. 

“The government must provide immediate assistance to farmers by supplying food and water for their cattle and lands, as well as offering financial aid and deferring debt payments to help them sustain their crops,” the economist advised.

Jedri noted that the decline in Moroccan purchasing power had negatively affected sectors such as trade, resulting in business closures. 

It’s worth noting that the government aims to create over 250,000 direct job opportunities through the “Orahs” program and extend job loss compensation to all available workers by 2025. It also seeks to generate more than 100,000 jobs in fishing and aquaculture and create at least one million net job positions within the next five years while increasing women’s workforce participation to over 30%.