Moroccan Households Fear Rising Unemployment Despite Economic Recovery Forecasts

85% of Moroccan households expect an increase in unemployment over the next 12 months. Thus, "the provisions of the Finance Act which grant an exemption from income tax to encourage companies to hire, do not seem too reassuring," writes l’Economiste. At the same time, the prospects for a 4.6% growth recovery by the High Commission for Planning and 4% by the World Bank do not restore confidence to households.

Consequently, "the balance of opinion remained negative, at minus 78.3 points in the fourth quarter of 2020, compared to minus 71.6 points a year earlier," noted the daily, adding that in the meantime, "the unemployment rate would have deteriorated by 3.6 points in 2020 to 12.8%", especially among young graduates and women. Moreover, just like employment, households also doubt the improvement in their standard of living. "Over the next 12 months, 41.7% of them expect a deterioration, 34% a maintenance at the same level and only 24.3% an improvement. Thus, with minus 17.4 points, the balance of opinion relating to this indicator has deteriorated compared to the fourth quarter of 2019," indicates the economic daily.

Furthermore, out of ten households, six indicated that their income covers their expenses in the fourth quarter of 2020, while a third are in debt or draw on savings. Of all households, barely 4.5% are able to save. As for the evolution of their financial situation over the next 12 months, 23.2% against 22.6% of households envisage an improvement.

At the same time, households believe that the current situation does not favor too much the acquisition of durable goods. This is "not very encouraging for companies, confirming the deterioration of their financial situation," the same source stressed.