Morocco Economic Council warns of job shortages and regional inequality

The Economic, Social and Environmental Council of Morocco has released its 2025 annual report, highlighting critical structural challenges facing the nation's development. President Abdelkader Amara noted that while Morocco has entered a new developmental phase, current investments are not generating sufficient employment. The report attributes this to a rise in capital-intensive activities and low local integration, which limits the indirect benefits for domestic companies.

Key structural issues identified include a fragmented productive fabric, where large corporations coexist with a vast majority of micro and small enterprises facing financing and regulatory hurdles. Additionally, a large informal sector—comprising approximately 2.03 million non-agricultural units—remains highly productive and employs nearly a third of the non-agricultural workforce.

The report also warns of widening regional economic disparities. Currently, just three regions—Casablanca-Settat, Rabat-Salé-Kenitra, and Tangier-Tetouan-Al Hoceima—account for 58.5% of Morocco's GDP. This concentration occurs despite massive investment efforts totaling approximately 190 billion dirhams (roughly 11.9% of GDP) between 2024 and 2030, driven by large-scale projects and preparations for the 2030 World Cup. The Council calls for more effective territorial public policies to ensure balanced infrastructure and investment distribution.