There will be no easy fixes to Rabat’s jobless woes

Significance

The loss of jobs has been heaviest in agriculture, which accounts for about one-third of the total labour force. Farmers have had to contend with a long-term fall in precipitation and erratic rainfall patterns. The weakness of domestic consumption growth has limited the scope for job creation in other sectors.

Impacts

• Relatively cheap labour will contribute positively to the growth of export-oriented industries such as cars and automotive components.
• High unemployment will present an opportunity for the political opposition to mobilise against the ruling coalition.
• IMF forecasts that unemployment will drop to 10.5% in the medium term depend on a relatively strong and sustained growth rate.