Morocco is grappling with high unemployment rates, particularly among young people and in rural areas. According to the High Commission for Planning, the national unemployment rate stood at 13% in 2025, with a significant 37.2% rate among young people aged 15-24. The country's economic growth has created jobs, but not enough to keep pace with the growing workforce. In 2025, the economy created 193,000 new jobs, but this was not evenly distributed, with urban areas creating 203,000 jobs while rural areas lost 10,000.
The issue of unemployment varies greatly across Morocco's 12 regions. The Casablanca-Settat region, for example, accounted for 25.5% of the country's total unemployed population in 2025, with an unemployment rate of 14.6%. In contrast, the Eastern region had an unemployment rate of 22.1%. These disparities highlight the need for tailored policies that address the specific needs and challenges of each region. Regional councils have a crucial role to play in this regard, but they face significant challenges in terms of resources and powers.
Morocco's regional councils have been given more autonomy and powers to address unemployment and promote economic development. The 2026 Organic Law on Regions provides for regional councils to support productive investment and stimulate entrepreneurship, but the implementation of these powers is hampered by limited financial and human resources. Furthermore, the law does not provide for vocational training and job placement to be among the regions' own competencies. This has raised concerns about the ability of regional councils to effectively address unemployment.
To address these challenges, a territorial contract for employment and skills has been proposed. This contract would bring together regional councils, businesses, and social partners to identify priorities and commit to specific actions. The contract would be based on a diagnosis of the needs of businesses and projects, as well as the capacities of vocational training institutions and the situation of job seekers. The priorities would be selected based on their feasibility and potential to create decent jobs.
The territorial contract would also involve the mobilization of resources and the definition of responsibilities and deadlines. It would be accompanied by a monitoring and evaluation framework to track progress and impact. This approach would allow for greater coordination and effectiveness in addressing unemployment, and would also promote greater transparency and accountability. The involvement of social partners and civil society organizations would also help to ensure that the needs and concerns of all stakeholders are taken into account.
The implementation of the territorial contract would require a significant effort to build the capacities of regional councils and their partners. This would involve training and technical assistance to enhance the skills and knowledge of council members and staff. It would also require the development of new tools and methodologies to support the design and implementation of employment policies. The upcoming 2027 local elections would provide an opportunity to take stock of progress and to renew the commitment to addressing unemployment and promoting economic development.
Ultimately, the success of Morocco's regional councils in addressing unemployment will depend on their ability to work effectively with all stakeholders, including businesses, social partners, and civil society organizations. It will also require a sustained commitment to building capacities and promoting greater transparency and accountability. With the right approach and support, regional councils can play a crucial role in promoting economic development and reducing unemployment in Morocco.
Key points
- Morocco's regional councils face significant challenges in addressing unemployment, including limited resources and powers.
- A territorial contract for employment and skills has been proposed to bring together regional councils, businesses, and social partners to address unemployment.
- The implementation of the territorial contract would require a significant effort to build the capacities of regional councils and their partners.
