Like other countries around the world, the COVID-19 pandemic has evolved in Morocco from a health crisis to an economic and social crisis with repercussions on employment. The African Development Bank (AfDB) and the International Labor Organization (ILO) have jointly conducted a study to analyze the effects and submit recommendations.
According to the study, two thirds of very small and medium-sized enterprises (MSMEs) in the Kingdom recorded lows in turnover of more than 15% in the first semester of 2020. This situation led, at the end of 2020, to the termination of 430,000 jobs compared to 2019 and an increase in underemployment.
As 73% of jobs were based in MSMEs, the latter have been the most affected. The study thus analyzes the pre-crisis situation, and also reveals the importance of the informal sector, which involves 81% of MSMEs and 60% of jobs in the private sector. The document also highlights pre-existing structural constraints, exacerbated by the pandemic.
In order to mitigate the economic repercussions of the crisis, the Moroccan authorities have implemented workers' compensation measures, and granted financial and tax facilities to MSMEs. These efforts had a cushioning effect helping to preserve 71% of the jobs threatened following the first quarantine. Without these measures, GDP growth would thus have experienced a more notable deceleration with an additional decline of 6%, according to the study, which offers concrete policy recommendations.
