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Labour Market Profile Morocco – 2020/2021

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Labour Market Profile Morocco – 2020/2021 Labour Market Profile Morocco – 2020/2021 Danish Trade Union Development Agency The profile provides a comprehensive overview of the labour market’s structures, development, and challenges. Danish Trade Union Development Agency Morocco Labour Market Profile 2020/2021 PREFACE Danish Trade Union Development Agency (DTDA) is the development and legal reforms, status vis-à-vis ILO development organisation of the Danish trade union conventions and labour standards, among others. movement. This agency was established in 1987 by the two largest Danish confederations – Danish Federation Primary sources of data and information for LMPs are: of Trade Unions (Danish acronym: LO) and Danish Confederation of Professionals (Danish acronym: FTF). • As part of programme implementation and These confederations merged to become the Danish monitoring, national partner organisations provide Trade Union Confederation (Danish acronym: FH) in annual narrative progress reports, including January 2019. Correspondingly, former known as information on labour market developments. LO/FTF Council was changed to DTDA. • National statistical institutions and international The work of DTDA is in line with the global Decent Work databanks are used as a source for collection of Agenda (DWA) based on its pillars: creating decent jobs, general (statistical) data and information such as guaranteeing rights at work, extending social protection, ILOSTAT and NATLEX, World Bank Open Data, ITUC and promoting social dialogue. The overall development Survey of Violations of Trade Union Rights, the U.S. objective of DTDA’s interventions in the South is to Department of State as well as other international eradicate poverty and support the development of just recognised labour-related global indexes. and democratic societies by furthering the DWA. • Academia and media sources (e.g. LabourStart, DTDA works in partnership collaboration with trade union national news, among others) are furthermore used organisations in Africa, Asia, Latin America, and the in the available research on labour market issues. Middle East. The immediate objective of the programme implementation is to assist the partner organisations in Labour Market Profiles for more than 30 countries are becoming change-agents in their own national and available on DTDA’s website: regional labour market context, capable of achieving https://www.ulandssekretariatet.dk/. tangible improvements in the national DWA conditions, and towards the achievement of the labour-related DTDA prepared the Labour Market Profile in Sustainable Development Goals (SDGs). collaboration with the DTDA MENA sub-Regional Office in Tunisia. If any comments or questions arise for the The format of the Labour Market Profile (LMP) provides profile, please contact Mr. Kasper Andersen a comprehensive overview of the labour market situation ([email protected]) from DTDA. in the individual countries of engagement. The profile is divided into nine thematic sections describing the Cover Photo: factory worker from Morocco economic performance, labour legislation, social photographed by Mr. Moltzen. partners, social dialogue, violations of trade union rights, working conditions, the general status of the workforce, Address: education, and social protection. Ulandssekretariatet Islands Brygge 32D In the framework of DWA and SDGs, LMPs are following DK-2300 Copenhagen S several central indicators addressing aspects of labour Denmark market development, especially the unionism evolution, Telefon: +45 33 73 74 40 social dialogue and bi-/tri-partite mechanisms, policy https://www.ulandssekretariatet.dk/ Page i Danish Trade Union Development Agency Morocco Labour Market Profile 2020/2021 EXECUTIVE SUMMARY Morocco’s economic growth has been relatively high, at A declining trend of the labour force participation rate 3.4% on average during the last decade. Labour accelerated during the 2010s, especially among youth, productivity stays low compared to the Northern Africa which was part of the considerable upturn in school average due to the volatile agricultural sector and enrolment on all levels. Alterations in the employment fragile integration of the industry and service sectors. structure progressed in the projected intensifying share Minimum wages have increased in real terms, notably in of employees (i.e. workers who hold paid employment the public sector. It backed a growing middle-class jobs) moving from the agricultural sector to the service reaching approximately 77% among the employed in sector. The employment share in the industry sector 2020. The economic recession in 2020, as an impact of dropped on the margin, especially for women in the the global coronavirus (COVID-19) pandemic, infused a manufacturing sector. hike in unemployment and put many people balancing on the poverty threshold line. The rising youth unemployment rate during the 2010s and pervasive long-term unemployment echoed the Several labour-related reforms were launched during underlying weaknesses of the labour market and the 2010s. Three international ILO conventions economy. These factors linked the lack of inclusion in the concerning Occupational Safety and Health (OSH), labour market sticking to youth and women. Low quality migration for employment, and social security were of jobs caught by informal employment furthermore ratified in June 2019. It is important to realise that grasps gaps in social protection coverage. around one out of two Moroccan workers operates in the informal economy that loopholes in labour and business The Moroccan out-migration flow faced brain-drain for regulations, often due to lack of awareness or incentives. decades. Personal remittances became a significant part of the economy, and its volume hovered above the Several tripartite mechanisms are operational, but foreign direct investments. The entry to Europe has labour-relations are challenged in practice, e.g. become increasingly difficult for African job-seeker Moroccan employers often consider cooperation in migrants and around 700,000 ends settled in Morocco. labour-employer relations at low-medium ranking. They mostly lack legal status and end operating in the Tensions mounted between the government and the trade informal economy. An impact of COVID-19 tightened the union movement in recent years. To cool the social influx of asylum seekers and put many in critical health dialogue frictions, the government, trade unions, and situations and further economic insecurity in limbo. employers’ organisation signed the Social Dialogue Agreement in April 2019 to improve tripartite During the last two decades, the declining child labour consultation on work-related issues. This agreement has rate was aided by impressive growth in school enrolment not yet reached significant improvements in the tripartite as well as curbing the gender gaps. Nevertheless, the negotiations. quality of the education system has been blighted by severe drop-outs rates; and around one out of three in Enterprises with at least 50 workers are required to employment have less than basic education. organise bipartite OSH committees. Since a large majority is micro- or small enterprises most pass this The country’s social security system is fragmented with regulation. Bipartite collective bargaining agreements’ deep coverage disparities. Although the social protection coverage is meagre but under development. Unionism is coverage concerning insurance or health assistance contested in raising the membership rate from several scheme has increased significantly during the 2010s, the fronts. The trade union density of employment reached private out-of-pocket health expenditure rests high. In 6.9% in 2019, which was relatively low in comparison to recent years, the novel health insurance scheme for self- other Northern Africa countries. Organised workers are employed workers and the Job Loss Allowance Code countered by “regular violations of rights”, according to demonstrated modest results in the scope. A reform of the Global Rights Index. the few pending subsidies schemes is stalled shielded by the low international energy prices, and to avoid its The population’s structure changed because of the potential significant increase in poverty. declining fertility rate and halving the dependency ratio. Page ii Danish Trade Union Development Agency Morocco Labour Market Profile 2020/2021 The table below presents key labour market indicators in On the next page, Page iv, the second table presents an the framework of the Decent Work Agenda (DWA) that overview of the current value and targets of the are related to central unionism issues. Sustainable Development Goals indicators’ in relation to the labour market issues. Status of key labour market indicators in the framework of the Decent Work Agenda (DWA) in Morocco Creating decent jobs Yes, active labour programmes on wage subsidies for unemployed graduates, youth training, and entrepreneurship promotion through training and financial assistance Policy reforms addressing creation of decent have been implemented. Other sectoral plans (e.g. Morocco's Global Jobs and employment Moroccan Green Plan) aim to promote job creation through macroeconomic and sectoral policies (e.g., compensation reform, flexible exchange rate policy, pro- growth sector strategies). The only registered legislation related to the informal economy is Act No. 18-97 of 5 February 1999 on microcredit. A tripartite National Informal Economy Forum has ILO standard setting on improvement of status of not yet been established.
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