Unemployment and underemployment affect 2.4 million Moroccans in the third quarter of 2026.

Moroccan Labor Market Faces New Deterioration in Q3 2026

The Moroccan labor market experienced a further decline in the third quarter of 2026, marked by simultaneous increases in unemployment and underutilization of the workforce. According to the latest data from the High Commission for Planning (HCP), nearly 2.4 million people are affected by at least one form of underutilization of their work capacity.

The composite rate of workforce underutilization has reached 19.6%, up from 18.9% in the previous quarter, representing a rise of 0.7 percentage points. This indicator includes strict unemployment, potential workforce, and underemployment related to working hours. Among those affected, 50.2% are strictly unemployed, 29.9% are part of the potential workforce, and 19.9% are experiencing underemployment.

The deterioration in the labor market particularly affects young people and women. For those aged 15-24, the composite rate of underutilization has increased by 2.8 points to reach 44.5%. Among women, this rate stands at 28.5%, compared to 17% for men.

Strict Unemployment Reaches 10.5%

The number of strictly unemployed individuals rose to 1.22 million in the third quarter, reflecting an increase of 103,000 people compared to the previous quarter. This rise is observed in both urban areas, which saw an additional 46,000 unemployed, and rural areas, where the increase reached 57,000.

Thus, the national unemployment rate has risen from 9.5% to 10.5%. Women are disproportionately affected, with an unemployment rate of 16.7% compared to 8.7% for men. The situation is particularly alarming among youth: unemployment for those aged 15-24 has hit 30.5%, an increase of 3.3 percentage points in just one quarter.

Graduates are also facing significant challenges in entering the job market. The unemployment rate for those holding advanced degrees or intermediate diplomas stands at 18.1%, compared to 11.6% for those with basic education and 4.7% for individuals without any diploma.

Casablanca-Settat Exceeds National Average

Regional disparities remain notable. Guelmim-Oued Noun shows the highest composite rate of underutilization at 38.7%, followed by Oriental (28.3%), Laâyoune-Sakia El Hamra (27.4%), and Fès-Meknès (25.9%).

The Casablanca-Settat region also surpasses the national average, with a rate of 20.1%, compared to the national figure of 19.6%. Conversely, Dakhla-Oued Ed-Dahab records the lowest level at just 9.2%.

In terms of strict unemployment, the highest rates are found in Guelmim-Oued Noun (17.2%), Drâa-Tafilalet (14.7%), Oriental (13.7%), and Casablanca-Settat (13%). The lowest levels are in Dakhla-Oued Ed-Dahab (4.6%) and Tanger-Tétouan-Al Hoceima (6.8%).

Economy Loses 173,000 Jobs in Exchange for Income

This deterioration occurs in the context of an employment decline. The number of people employed for compensation was recorded at 10.47 million in the third quarter of 2026, showing a net decrease of 173,000 individuals compared to the previous quarter.

The decline primarily affected rural areas, with a loss of 148,000 jobs compared to 25,000 in urban regions. The national employment rate fell from 38.2% to 37.4%.

By sector, services remain the largest provider of jobs, accounting for over 5.15 million people or 49.2% of the total. This is followed by agriculture, forestry, and fishing (23.2%), industry (14.6%), and construction (12.9%).

Quarterly developments show an increase of 69,000 jobs in the industrial sector. However, agriculture lost 145,000 positions, services lost 96,000, and construction shed 3,000 jobs.

Participation Rate Declines to 41.8%

The national labor force, which includes both employed individuals and strictly unemployed individuals, reached 11.69 million, down by 70,000 from the second quarter.

The labor force participation rate is now at 41.8%, compared to 42.2% the previous quarter. Gender disparities remain significant: the participation rate is 65.6% for men, compared to just 18.1% for women.

Regionally, Dakhla-Oued Ed-Dahab boasts the highest participation rate at 64.7%, followed by Casablanca-Settat (47%) and Tanger-Tétouan-Al Hoceima (45.5%). Drâa-Tafilalet reports the lowest level at 30.2%.

These indicators highlight the extent of the challenges facing the Moroccan labor market, particularly for young people, women, and graduates, against a backdrop of declining employment and rising unemployment.