Still reeling from the severe impact of drought, Morocco's agricultural sector continues to struggle with job losses and workforce recovery. By the second quarter of 2025, the national unemployment rate had declined by just 0.3%, settling at 12.8%. However, the figures reveal a notable increase in unemployment among women, while a significant portion of the workforce remains underemployed. Between the second quarter of 2024 and the same period in 2025, Morocco's national unemployment rate fell by just 0.3 percentage points, from 13.1% to 12.8%, according to the High Commission for Planning (HCP). However, the persistent economic impact of drought continues to weigh on employment, particularly in the agricultural sector, which lost 108,000 jobs. In contrast, job gains were recorded in construction (+74,000), services (+35,000), and industry (+2,000). Regionally, unemployment declined from 16.7% to 16.4% in urban areas and from 6.7% to 6.2% in rural areas. By gender, the rate dropped by 0.9 points for men (from 11.7% to 10.8%) but rose sharply among women, climbing from 17.7% to 19.9% (+2.2 points), underscoring a growing gender gap in the labor market. Women Increasingly Educated, Yet More Unemployed Unemployment among women remains alarmingly high and continues to rise. Youth aged 15–24 face the highest unemployment rate at 35.8%, followed by university graduates (19%) and women. Despite advances in education, women are finding it increasingly difficult to access employment, a trend that has persisted since 2010. Although women represent half of all students in schools and universities, they are also the most vulnerable in the informal labor market and are more likely to lose their jobs. The unemployment rate for those aged 25–34 rose from 21.4% to 21.9%, while it dropped marginally among younger and older age groups. Among 15–24-year-olds, it decreased slightly from 36.1% to 35.8%; among those aged 35–44, it declined from 7.3% to 7%, and for those over 45, it fell by 0.4 points. Graduates experienced a modest decline in unemployment, from 19.4% to 19% (-0.4 points). The most significant improvements were seen among those with vocational training (-2.4 points to 20.8%) and those with qualifying secondary education (-1 point to 25.1%). Underemployment on the Rise A more concerning trend is the rise in underemployment, which increased from 9.6% to 10.6% nationally. In rural areas, it grew from 11.6% to 12.4%, and in urban zones, from 8.3% to 9.4%. In total, 1.15 million people are now considered underemployed, 635,000 in urban areas and 512,000 in rural ones. Underemployment due to insufficient working hours rose slightly from 583,000 to 602,000 people (5.4% to 5.5%), while underemployment linked to low income or job mismatch surged from 459,000 to 545,000 (4.2% to 5%). Notably, underemployment increased most in sectors that generated jobs. In construction, it jumped by 3.3 percentage points (from 18.9% to 22.2%). In industry, it rose by 1.7 points (from 5% to 6.7%), followed by agriculture (+0.5 points, from 11.5% to 12%) and services (+0.4 points, from 7.7% to 8.1%). Regional Disparities Remain Stark Five regions account for 72.3% of Morocco's active population aged 15 and over: Casablanca-Settat (22.2%), Rabat-Salé-Kénitra (13.6%), Marrakech-Safi (13%), Fès-Meknès (11.8%), and Tangier-Tetouan-Al Hoceima (11.7%). Four regions have activity rates above the national average of 43.4%: Tangier-Tetouan-Al Hoceima (47.9%), the Southern regions (46.6%), Casablanca-Settat (45.4%), and Marrakech-Safi (43.9%). The lowest activity rates were recorded in Béni Mellal-Khénifra (39.7%), Drâa-Tafilalet (40.1%), Souss-Massa (40.4%), and the Oriental (40.4%). Unemployment is also heavily concentrated: Casablanca-Settat alone accounts for 25.5% of all job seekers, followed by Fès-Meknès (14.8%), Rabat-Salé-Kénitra (13.1%), the Oriental (10.7%), and Tangier-Tetouan-Al Hoceima (8.2%). The highest unemployment rates were recorded in the Southern regions (25.7%) and the Oriental (21.1%), both well above the national average. Fès-Meknès (16.2%) and Casablanca-Settat (14.7%) also exceed the national rate, while the lowest levels were found in Drâa-Tafilalet (6.4%), Marrakech-Safi (7.5%), and Tangier-Tetouan-Al Hoceima (8.9%).
