Morocco Unveils $1.3 Billion Plan to Combat Youth Unemployment

Morocco's government has launched an ambitious MAD 14 billion ($1.3 billion) initiative to address unemployment challenges, with a particular focus on creating opportunities for young job seekers without formal qualifications. The comprehensive strategy, announced by Economic Inclusion Minister Younes Sekkouri during the Open Days of the Authenticity and Modernity Party in Tetouan, aims to reshape the country's labor market through targeted interventions and skill development programs.

At the heart of the initiative is an expanded apprenticeship program designed to provide practical experience to young job seekers within small and medium-sized enterprises (SMEs) and cooperatives. The government plans to increase participation in this program from 20,000 to 100,000 participants by 2025, with a special emphasis on opportunities in rural areas.

The National Agency for the Promotion of Employment and Skills (ANAPEC) will play a crucial role in implementing the strategy, specifically focusing on connecting businesses with workers who lack formal diplomas. This approach acknowledges the significant segment of the workforce that may have valuable skills but lacks traditional educational credentials.

In a move to stabilize rural employment, the government is also introducing measures to encourage farmers to maintain their workforce, promoting long-term job security within the agricultural sector. The strategy has already shown promising results, with Sekkouri reporting the creation of 300,000 new jobs in the third quarter of 2024 across various sectors including industry, commerce, tourism, construction, and handicrafts.

Complementing these employment initiatives, the government has approved a 5% increase in the minimum wage for both non-agricultural (SMIG) and agricultural (SMAG) workers, effective January 1, 2025. Government spokesperson Mustapha Baitas announced that the SMIG will increase to MAD 17.10 per hour (approximately MAD 3,045 monthly net), while the SMAG for agricultural workers will rise to MAD 93 per day (about MAD 2,255 monthly net).

"When this government makes a promise, it keeps it. This is not about slogans—it's about delivering real change," Baitas emphasized, underlining the government's commitment to improving living standards through concrete policy actions.

This comprehensive approach to labor market reform represents Morocco's strategic response to persistent unemployment challenges, particularly among its youth population. By combining practical training opportunities with wage improvements and rural stabilization measures, the initiative aims to create a more inclusive and dynamic job market across both urban and rural areas.