After a subdued performance in 2024, Morocco’s labor market shows clearer signs of recovery in 2025. According to the latest note released by the High Commission for Planning (HCP), the national economy created 193,000 net jobs, more than double the 82,000 jobs recorded a year earlier. This quantitative improvement, largely driven by urban and salaried employment, nonetheless conceals persistent structural weaknesses, particularly regarding job quality, youth integration, and the rise of underemployment.

Urban and salaried employment drive the recovery

Net job creation in 2025 stems from the creation of 203,000 positions in urban areas, offset by a loss of 10,000 jobs in rural areas. This confirms the ongoing urbanization of employment and the continued fragility of rural labor markets, especially in agriculture.

By employment type, all new jobs created were salaried positions, totaling 249,000, while unpaid employment declined by 55,000 jobs. Although this shift reflects gradual formalization of employment, it does not fully address existing forms of job insecurity.

Industry, construction, and services: uneven employment engines

With the exception of agriculture, forestry, and fishing, all sectors recorded net job gains.

The services sector remained the main driver, creating 123,000 jobs, largely in financial, real estate, scientific, technical, and social services. Construction and public works (BTP) added 64,000 jobs, reflecting renewed momentum in infrastructure and housing projects.

Industry generated 46,000 net jobs, mainly in urban areas. While its contribution remains modest compared to services, it sends a positive signal for productive employment and industrial activity.

Conversely, agriculture lost 41,000 jobs, mainly in rural areas, underlining the sector’s vulnerability to climate stress, income volatility, and structural transformation.

Slight decline in unemployment, persistent pressure on youth and women

The number of unemployed persons fell by 17,000 to reach 1.62 million in 2025, bringing the national unemployment rate down from 13.3% to 13%. The decline was more pronounced in urban areas than in rural ones.

However, disparities remain acute. Youth unemployment (ages 15–24) rose to 37.2%, highlighting persistent barriers to labor market entry. Female unemployment increased to 20.5%, while male unemployment declined. More than half of the unemployed have never worked, and the average unemployment duration now stands at 33 months, pointing to increasingly structural joblessness.

Underemployment: the labor market’s Achilles’ heel

More concerning is the rise in underemployment, which affected 1.19 million workers in 2025, representing 10.9% of the employed population, up from 10.1% a year earlier.

All sectors were affected, with the sharpest increase recorded in construction, followed by agriculture and industry. This trend reflects both insufficient working hours and a growing mismatch between education, skills, and job requirements.

Limited job protection and inclusion

Only 31.6% of employed workers benefit from employment-related health coverage, with significant disparities across sectors. Industry performs relatively better, while agriculture and construction lag far behind.

Moreover, just over half of salaried workers hold a formal employment contract, underscoring the persistence of informal and weakly protected labor relations.

A recovery still in transition

The 2025 labor market reflects a quantitative recovery driven by urban activity, services, construction, and industry. Yet without stronger progress in job quality, youth employment, and labor protection, this recovery risks remaining fragile and socially uneven.