Morocco’s COVID-19 Crisis Leads to 726,000 Job Losses in Formal Sector

This survey focuses on assessing the immediate impact of this health crisis on the situation of companies in Morocco. The survey results show that 27% of companies have had to temporarily or permanently reduce their workforce. As a result, nearly 726,000 jobs have been cut, or 20% of the workforce of organized companies.

By category of companies, this proportion is 21% for VSEs, 22% for SMEs and 19% for LEs. More than half of the reduced workforce (57%) are employees of VSMEs (very small, small and medium-sized enterprises), it is specified.

According to the HCP, the sectors most affected in terms of job cuts are mainly the services sector with 245,000 jobs, or 17.5% of total employment in this sector, followed by the industrial sector with a reduction of 195,000 jobs, or 22% of the workforce in this sector. The construction sector has also seen a reduction of nearly 170,000 jobs, or 24% of total employment in this sector.

By branch of activity, the clothing industry recorded a 34% reduction in total employment in this branch, followed by the accommodation industry with 31% of jobs reduced, then the building construction and catering branches which would have reduced their workforce by 27% and 26% respectively, the survey reveals.