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Morocco’s Labor Market Has a Hidden Problem: The Activity Rate Has Been Falling for 25 Years

A detailed data analysis published Wednesday by Medias24 news outlet exposes a structural dimension of Morocco’s labor market that rarely features in public policy debate: the activity rate — the share of the working-age population that is either employed or actively seeking work — has fallen continuously for a quarter century, from 54.5 percent in 1999 to 43.5 percent in 2025. This decline, the analysis argues, is the blind spot of Morocco’s employment discourse, which focuses overwhelmingly on the unemployment rate while overlooking the millions who have quietly exited the labor market entirely.
The distinction matters enormously, according to the authors of the analysis. The unemployment rate only captures those who are both without work and actively seeking it. It says nothing about those who have stopped looking — discouraged workers, those who have retreated to domestic roles, those who linger in informal or agricultural settings without formal employment status. The activity rate captures the full picture, and its downward trajectory over 25 years represents a large and growing pool of unrealized economic potential.
The geographic breakdown is revealing. In urban areas, the activity rate fell modestly from 48.1 percent to 42.2 percent between 1999 and 2025. In rural areas, the collapse was far more severe: from 63.1 percent to 46.1 percent — a 17-point fall. Of the 5.7-point national decline observed between 2011 and 2024, approximately 4.2 points originated in the rural sector alone. The story of Morocco’s declining labor force participation is, at its core, a rural story.
The feminization of this collapse is equally stark. The female activity rate in rural areas fell from 36.6 percent in 2011 to 18.8 percent in 2024 — a loss of 17.8 points. In absolute terms, the number of economically active rural women dropped from 1.8 million to 867,000 over the same period. The primary driver is the contraction of agricultural employment, which had historically integrated rural women into the labor market through smallholder farming, livestock rearing, and family enterprises. As agriculture shed jobs, women left the labor market without finding alternative pathways in industry or services.
The youth dimension is no less alarming. The activity rate for 15-to-24-year-olds fell from 35 percent to 22.7 percent between 2011 and 2024 — a 12.3-point decline. In rural areas the drop was even more severe, at 21.3 points. A partial explanation lies in longer schooling, but the analysis notes that this is insufficient: Morocco has more than 1.5 million NEET youth (not in employment, education, or training), suggesting a substantial component of the decline reflects genuine labor market discouragement rather than educational investment.

 

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