Half Moroccan Employees Have No Employment Contract

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Half Moroccan Employees Have No Employment Contract




Despite the government�s efforts to protect employees� rights, the majority of Moroccan employees do not benefit from social security.

More Than Half Moroccan Employees Have No Employment Contract

Rabat � Around 54.9% of Moroccan employees do not have any contract binding them to their employer, revealed the 2019 report from the High Commission for Planning (HCP) on Morocco�s active population. According to the report, only 26.5% of Moroccan employees have an open-ended contract, 11.4% have a fixed-term contract, and 5.8% have a verbal contract.

Young Moroccan workers, aged between 15 and 24 years, are the most affected by this trend, with 75.5% not having any form of contract with their employer. HCP revealed that Morocco�s active population reached 12.08 million in 2019, including 10.97 million Moroccan workers, and 1.11 million unemployed.

The active population is the total of citizens aged between 15 and 63 years who either have a job or are actively looking for one. The number excludes people who are not looking for a job, such as students and homemakers.

The activity rate in Morocco reached 45.8%. While the rate�s difference between urban areas (42.3%) and rural areas (52.2%) is not significant, it is much higher between genders.

Around 71% of Moroccan men are active, while only 21.5% of women are part of the active population. Meanwhile, the employment rate in Morocco reached 41.6% in 2019, varying from 65.5% among men to 18.6% among women, and from 57.9% among people aged 35-44 to 18.9% for those aged 15-24.

Lack of social security

Half of the Moroccan workers (50.1%) are employees, while 30.2% work independently. Meanwhile, 14.7% of workers offer family aid services. Finally, only 2.4% of occupied Moroccans are employers.

More than half of the Moroccan occupied population (55.4%) does not have any formal qualifications. Around 29.6% have a medium-level qualification and only 14.9% have a higher education degree. Concerning remuneration, about 15% of Moroccan workers do not receive any pay for their work. The rate culminates among people aged under 25 years, at 44.2%, and drops to 9.8% for workers aged more than 45.

Only a quarter of Moroccan workers (24.1%) benefit from health insurance. Around 72.1% of Moroccans with higher education degrees have medical coverage, while only 10.8% of those without formal qualification benefit from it.

Additionally, only one fifth (22.4%) of Moroccan workers are enrolled in pension funds. Again, the better the qualifications, the more likely Moroccans are to be part of a retirement plan, with the rates climbing from 8.9% for workers without formal qualification to 70.7% for those with a higher education degree.

Where do Moroccans work?

According to the report, the sector of services employs more Moroccans than any other field at 4.93 million workers, around 44.9% of the active population.

The fields of agriculture, forests, and fishing come second with 3.57 million workers (32.5%), followed by handicrafts (1.32 million workers, 12%), and construction (1.15 million, 10.5%). Working in the tertiary sector is more common in urban areas, with nearly two thirds (65.7%) of the active population in cities working in the service industry

Meanwhile, the fields of agriculture, forests, and fishing employ around 69.4% of the active population in rural areas. Morocco�s unemployment has moved from 9.2% in 2019 to 11.9% in 2020, a new study from the High Commission for Planning (HCP) has revealed. The study shows that the unemployment rate increased by 2.7 points between the two years.

The increase includes all categories of the population and is the result of the rise of unemployment in rural areas (5.9%) and urban areas (15.8%).

The unemployment rate increased by 2.9 points to 10.7% for men and 2.7 points to 16.2% for women.The HCP study noted the total number of unemployed people climbed by 29% to 322,000 people.

�This increase is the result of an increase of 224,000 uneployed people in urban areas and 98,000 in rural areas,� said the study. The HCP attributed the increase to several other factors, citing a number of socio-economic crises that have led to many people losing their jobs.

Another study from the HCP showed that COVID-19 resulted in the shut down of many companies in Morocco. More than 16% if Morccan companies temporarily or permanently closed by the end of 2020, according to the survey.

Today�s HCP note said Morocco�s labor market situation experienced a deterioration characterized by the destruction of jobs, a drop in the number of working hours, and the increase in unemployment rate. The document attributed the crisis to COVID-19 repercussions. This loss affected both areas (295,000 in rural areas and 137,000 in urban areas) and all sectors. The �agriculture, forestry and fishing� sector lost 107,000 jobs, the �industrial sector� lost 273,000, the crafts industry lost 37,000 jobs, while the construction sector lost 9,000 jobs.

The number of working hours per week fell 20% from 494 million hours to 394 million hours

The average number of working hours per week fell from 45.2 to 37.5 hours.

According to the HCP, the employment rate experienced a drop, moving from 41.6% to 39.4% at the national level (-2.2 points), by 1.6 points in urban areas (from 36.9% to 35.3%), and by 3.2 points in rural areas (from 50.3 to 47.0%). The drop was more prevalent among men (2.6 points) than among women (1.9 points),the study noted.
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