The scale of the informal sector in the Moroccan economy amounts to 30% of GDP said a new study conducted by the Central Bank. The informal economy leaves workers in vulnerability without pension or health insurance and undermines the economy due to tax and anti-competitive practices. The repercussions of the informal sector are more apparent in the job market. In its annual 2019 report, the central bank warned that fewer job opportunities meant that many people had to seek jobs at Morocco’s large informal economy leaving many young people in vulnerable conditions. Nearly 3 million jobs are threatened by the informal production units which have the advantage of low production costs, according to Morocco’s employers’ association CGEM.

Source: The North Africa Journal January 09, 2021 11:26 UTC