A recent report from the World Bank highlights that while Morocco boasts solid macroeconomic foundations, it grapples with significant structural imbalances that severely impact its economy. These imbalances reveal persistent weaknesses in the nation's capacity to generate jobs and adequately support its workforce, raising concerns about the future of employment and economic growth. The report warns that, without decisive and coordinated structural reforms, the employment gap is likely to widen, leading to continued economic instability.
The report indicates that Morocco faced an alarming average annual job deficit of 215,000 between 2000 and 2024, which escalated to 370,000 jobs per year from 2020 to 2024. This trend, as noted by the World Bank, reflects a decline in the economy's capacity for job creation, raising questions about the effectiveness of recent economic growth in creating employment opportunities.
Challenges in Employment Growth and Productivity
Between 2000 and 2024, the working-age population in Morocco grew by 47%, while the number of employed individuals increased by only 20.7%. Conversely, during this same period, the unemployment rate rose by 19.7%, leading to a concerning decline in the activity rate from 53.1% to 43.5%. Such statistics are indicative of the Moroccan economy's struggle to absorb its expanding workforce, underlining the urgent need for structural reforms.
One of the key factors contributing to the recent economic decline, as identified by the World Bank, is a growth model heavily reliant on high levels of investment, which have reached nearly 30% of GDP. Unfortunately, these substantial investments have not translated into significant improvements in productivity. The contribution of total factor productivity has remained disappointingly low, not exceeding 0.8 percentage points of annual growth, and has further declined in the wake of the COVID-19 pandemic. This situation points to a troubling lack of effectiveness in the investments being made and a decrease in their economic returns.
The report emphasizes the influence of the public sector in investment, accounting for approximately 50% to 66% of total investments. This dominance has restricted growth opportunities for the private sector, particularly for small and innovative businesses, which face challenges in accessing financing and encounter a lack of competitive pressure. Furthermore, the state's substantial role across various sectors has hindered the emergence of more productive and efficient economic participants.
Market Competitiveness and Gender Disparities
In examining the structure of Morocco's economy, the World Bank identifies that a staggering 94% of its businesses are categorized as very small enterprises, primarily focused on non-exportable sectors such as trade and construction. This concentration presents significant challenges, as it limits their potential to create structured and sustainable employment opportunities. Additionally, the report reveals a troubling trend, with over two-thirds of the workforce operating within the informal sector, which undermines social protection measures and hampers overall productivity in the national economy.
Concerns regarding market competitiveness are also raised, with approximately 40% of industries operating in a low-competitive environment. This lack of competition is attributed to regulatory restrictions that elevate market entry costs and stifle business growth. Further complicating matters are issues such as tax complications, delayed payments, and challenges in obtaining financing, all of which impede economic development in the region.
The report also draws attention to a phenomenon known as overskilling, where about 43% of university graduates are employed in roles that do not fully utilize their qualifications. This underutilization of human resources underscores the market's inability to provide sufficient opportunities that align with the skill sets of these graduates, further exacerbating the employment challenge.
Moreover, the low participation rate of women in economic activities is highlighted as a significant weakness within the Moroccan economy. The report notes a concerning decline in the female activity rate, which fell from 28% in 2000 to just 19% by 2024, representing a nearly 50% gap compared to male participation rates. This positions Morocco among the countries with the most considerable gender disparities in the workforce globally.
Overall, the World Bank underscores that the persistence of negative economic indicators reflects the fragility of the Moroccan economy and its limited capacity to achieve inclusive and sustainable growth. The institution emphasizes that addressing this crisis requires comprehensive reforms, including enhancing competition, improving the governance of public investments, supporting productive enterprises, and expanding the involvement of women and youth in the labor market.
As reported by echoroukonline.com.
