National Economy Loses 86,000 Jobs: Impact on Labor Market and Unemployment Rates

2023-08-04 14:03:45

The national economy lost 86,000 jobs

Labor market. Unemployment continues to worsen, going from 11.2 to 12.4% at the national level in the space of a year. It is higher among young people aged 15 to 24 (33.6%), graduates (19.2%) and women (17%).

The unemployment rate increased by 1.2 points between the second quarter of 2022 and that of 2023, rising from 11.2 to 12.4% at the national level. This is what emerges from the information note of the High Commission for Planning (HCP) relating to the situation of the labor market in the second quarter of 2023. In urban areas, this rate reaches 16.3% once morest 15.5 % a year earlier, registering an increase of 0.8 point while in rural areas, it climbed by 1.5 point from 4.2% to 5.7%. That said, compared to the first quarter of 2023, the unemployment rate has fallen. Indeed, it had stood at 12.9% at the end of March 2023. The number of unemployed also fell, falling from 1,549,000 in the first quarter of 2023 to 1,543,000 in the 2nd quarter of 2023.
In its note, the HCP points out that the number of unemployed increased by 156,000 people between the second quarter of 2022 and that of 2023, rising from 1,387,000 to 1,543,000 unemployed, an increase of 11%.

Urban areas saw an increase of 92,000 unemployed once morest 64,000 in rural areas. This rise in unemployment affected all categories of the population. That said, unemployment continues to hit women, young people and graduates hard. The unemployment rate increased by 1.9 points for women, rising from 15.1 to 17% once morest 1.1 points for men (9.9 to 11%). Among graduates, it rose by 1.2 points, rising from 18 to 19.2%, while it increased by 0.9 points among non-graduates (3.6 to 4.5%). The greatest increase (+3.4 points) concerned young people aged 15 to 24, rising from 30.2 to 33.6%. This rate rose from 18.7 to 19.8% among people aged 25 to 34. Furthermore, the volume of underemployment increased during this period, from 939,000 to 983,000 people. The rate of underemployment thus fell, at the national level, from 8.5 to 9%, from 7.7 to 8.4% in urban areas and from 9.6 to 9.9% in rural areas.

86,000 jobs lost
The national economy lost 86,000 jobs, which corresponds to a drop of 1%, despite the creation of 121,000 jobs in urban areas. Urban areas lost 206,000 jobs (-5%). By type of job, 112,000 paid jobs were created, resulting in the creation of 126,000 in urban areas and a loss of 14,000 in rural areas. On the other hand, unpaid employment fell by 198,000 jobs, a loss of 193,000 in rural areas and 5,000 in urban areas. The service and “agriculture, forestry and fishing” sectors remain the primary providers of employment. Among the 10,939,000 active workers in the second quarter of 2023, the “Services” sector employs 48.1%, followed by “Agriculture, forestry and fishing” (28.6%), “Industry including crafts” (12.2%) and “construction” (11%). In rural areas, approximately two-thirds of employed workers (65.1%) work in the agriculture, forestry and fishing sector. On the other hand, in urban areas, 66.5% of employed workers work in the service sector.

Services sector: 103,000 jobs created
As for the most productive sectors in terms of employment, the service sector comes first with the creation of 103,000 jobs at the national level (77,000 in urban areas and 26,000 in rural areas). In this sector, employment is up by 2%. Next comes the sector of “Industry including crafts” with the creation of 46,000 jobs at the national level (34,000 in urban areas and 11,000 in rural areas). As for the construction sector, we note the creation of 30,000 jobs (26,000 in rural areas and 3,000 jobs in town). On the other hand, the “Agriculture, forestry and fishing” sector lost 266,000 jobs at the national level (270,000 in rural areas and creation of 4,000 in urban areas), which corresponds to an 8% drop in employment in sector.

The activity rate down by 0.4 points
The activity rate fell by 0.4 points, compared to the same period of 2022, settling at 44.8%. The HCP explains this decline due to the increase in the population of working age (15 years and over) by 1.4% and the active population by 1%. It should be noted that the decline in the activity rate is more pronounced in rural areas (-1.6 points), falling from 50.8 to 49.2%. In urban areas, this rate increased by 0.3 points, from 42.3 to 42.6%. This decline affected more women (-0.8 point), going from 21.3 to 20.5%, once morest a virtual stagnation (-0.1 point) among men (from 69.9 to 69.8 As for the employment rate, it fell by 0.9 points, from 40.2 to 39.3% at the national level.It stagnated at 37.5% in urban areas and fell by 2.3 points in rural areas (from 48.7 to 46.4%) This rate recorded a drop among men (- 0.7 point) and among women (- 1.1 point).

Five regions are home to 72.3% of assets
Five regions are home to 72.3% of all working people aged 15 and over. Casablanca-Settat comes in first position with 22.2% of assets. Next come the regions of Rabat-Salé-Kenitra (13.9%), Marrakech-Safi (12.8%), Tangier-Tetouan-Al Hoceima (11.9%) and Fez-Meknes (11.5 %).The HCP specifies that five regions recorded activity rates above the national average (44.8%). These are the regions of Tangier-Tetouan-Al Hoceima (50.2%), Casablanca-Settat (47%), Drâa-Tafilalet (46.1%), the southern regions (45.6%) and Rabat-Salé-Kenitra (45.5%). On the other hand, the lowest rates are recorded in the regions of Beni Mellal-Khénifra (40.1%), Souss-Massa (41.2%) and Oriental (41.2%).

Casablanca-Settat has the highest number of unemployed
According to data from the HCP, five regions concentrate nearly seven out of ten unemployed people (69.4%) at the national level. The Casablanca-Settat region comes first with 25.7%, followed by Rabat-Salé-Kénitra (12.8%), Fès-Meknes (12.3%), Oriental (10.5%) and Tanger-Tetouan-Al Hoceima (8.1%). The highest unemployment rates are recorded in the southern regions (23.8%) and in the Oriental region (20.3%). Two other regions exceed the national average (12.4%); namely Casablanca-Settat (14.3%) and Fez-Meknes (13.2%). On the other hand, the regions of Marrakech-Safi, Tangier-Tetouan-Al Hoceima and Drâa-Tafilalet recorded the lowest rates, with 6.7, 8.5% and 10.1% respectively.

Review of the first quarter of 2023

Figures. In its briefing note on the labor market situation in the first quarter of 2023, the HCP had indicated that the rate stood at 12.9%. In urban areas, this rate had reached 17.1% and 5.7% in rural areas. The number of unemployed increased by 6%, or 83,000 people between the first quarter of 2022 and that of 2023. Their number thus rose from 1,466,000 to 1,549,000. The HCP had also specified that this increase is the result of an increase of 67,000 unemployed in urban areas and 16,000 in rural areas. Unemployment remains high among women, rising from 17.3 to 18.1%. It rose sharply by 1.9 points among young people aged 15 to 24, from 33.4 to 35.3% and among people aged 25 to 35, from 19.2 to 20.9. % (+1.7 points). As for the unemployment rate of graduates, it rose by 0.9 points to 19.8% in the first quarter of 2023 once morest 18.9% in the first quarter of 2022. This increase is more pronounced among holders of diplomas and certificates from primary and secondary college education (+2.2 points with a rate of 15.2%), and qualifying secondary education diplomas (+1.1 point and a rate of 22.6%) .

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