Unemployment, wages, inflation: Morocco’s three major economic challenges

Unemployment, wages, inflation: Morocco’s three major economic challenges
Unemployment, wages, inflation: Morocco’s three major economic challenges

The latest report from RGPH 2024 highlights a worrying situation in terms of employment in Morocco. While the activity rate is declining and the unemployment progresses, the rise in prices weighs heavily on the purchasing power of households, despite a change in minimum wages. Indeed, the report reveals a marked drop in the activity rate, which drops to 41.6% in 2024 compared to 47.6% in 2014.

One month after taking office as High Commissioner for Planning, Chakib Benmoussa presented to the press the detailed results of the 2024 General Population and Housing Census (RGPH). Meeting at the HCP headquarters in Rabat, the conference , widely followed by the media, confirmed and expanded on the data initially communicated by his predecessor, Ahmed Lahlimi. As of September 1, 2024, the legal population of Morocco amounted to 36,828,330 inhabitants, with an average annual growth rate of 0.85% between 2014 and 2024. This demographic slowdown is accompanied by increasing urbanization, reaching 62.8% of the population, compared to 51.4% in 1994. The seven largest cities concentrate 37.8% of the population urban, Casablanca occupying first place with more than 3.23 million inhabitants, followed by Tangier (1.27 million), Fez (1.18 million) and Marrakech (1.01 million). Mr. Benmoussa also painted a contrasting picture of the Moroccan socio-economic reality. On the one hand, he revealed alarming data on unemployment and socio-economic inequalities, particularly regarding gender and geographic distribution. On the other hand, he presented a map of the Moroccan economic fabric revealing a strong predominance of the private sector and SMEs, despite persistent regional disparities and a low representation of women in management positions. The details.

This decrease is particularly striking among women, whose activity rate has fallen from 20.4 to 16.8% in ten years. Men, although more present in the labor market, also recorded a significant decline, with a rate falling from 75.5 to 67.1%.

The situation is particularly alarming in certain regions. HAS Guelmim-Oued Nounthe unemployment rate peaks at 31.5%, followed byOriental (30.4%) and Béni Mellal-Khénifra (26.8%). Conversely, regions like Dakhla-Oued Eddahab (10,6%) et Casablanca-Settat (18.8%) display relatively low rates. Female unemployment, for its part, remains much higher than that of men: 25.9% for women compared to 20.1% for men.

Salaries: limited adjustments

Faced with this tense economic situation, the guaranteed inter-professional minimum wage (CHIN) saw an increase to reach 15.55 dirhams per hour, while the guaranteed agricultural minimum wage (TASTE) is now set at 84.37 dirhams per day. Despite these increases, the evolution of wages does not seem sufficient to compensate for the continued rise in prices.

Inflation, a burden on households

The consumer price index (CPI) recorded a notable increase, reaching an average annual variation of 6.8% in urban areas. This inflation is mainly driven by the increase in prices of food, energy and essential goods. Moroccan households, particularly the most vulnerable, directly feel this pressure, which erodes their purchasing power.


Local
Morocco

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