Morocco’s Informal Labor Crisis: Over Half of Workers Lack Employment Contracts

In Morocco, more than half of employees (55.2%) do not have any contract formalizing their relationship with the employer (54.9% in 2019), according to an HCP note. According to this document, a little over a quarter (26.4%) have an indefinite-term contract, 12.2% have a fixed-term contract and 6.2% have a verbal contract. Those most affected by work without a contract are employees aged 15 to 29 (62.7%) and people without a diploma (74.4%).

A little over half (54.3%) of the employed active population have no diploma, 30.5% have a medium-level diploma and 15.2% have a higher-level diploma, details the same source, adding that the labor market is characterized by low protection.

Thus, in 2020, a little less than half (46.1%) of employees benefit from medical coverage provided by the employer, 53.4% in urban areas and 25.1% in rural areas, 57.3% among women and 43.3% among men. Nearly one in four employed persons (24.1%) is affiliated with a pension system, 36.3% in urban areas and 7.1% in rural areas. The coverage rate by a pension system is slightly higher among women than men, 27.5% and 23.1% respectively.