Morocco's economy expanded by 3.4% in 2025, according to the High Commission for Planning (HCP), but the unemployment rate rose to 13.6% from 13.3% in 2024. This persistent gap between GDP growth and job creation underscores structural challenges in the labor market.
The HCP report, released in early 2026, shows that while sectors like agriculture and services contributed to growth, they did not generate sufficient formal employment. Youth unemployment remains particularly high at 36.5%, with urban areas facing a rate of 18.2%.
Economists attribute the disconnect to a mismatch between workers' skills and market needs, as well as a large informal sector that absorbs many workers without formal contracts. The government has launched programs to boost vocational training and support small businesses, but results have been slow.
In response, the government announced in March 2026 a new employment strategy focusing on digital sectors and green jobs, aiming to create 500,000 jobs by 2028. However, experts caution that without deeper reforms in education and investment, the gap may persist.
