• UN agency estimates informal employment at 60–80% of Morocco’s labor force
• Over 2 million informal production units were operating in 2023
• Gradual formalization is seen as key to productivity and social protection

Between 60% and 80% of Morocco’s working population is employed in the informal sector, according to estimates by the United Nations Economic Commission for Africa. Published in November 2025 in the regional report on the Sustainable Development Goals, the assessment highlights the structural nature of informality, which is widespread in both urban and rural areas. It covers a broad range of activities, from self-employment and small unregistered businesses to a large share of agricultural jobs.

National data reinforce this picture. Morocco had more than 2 million informal production units in 2023, mainly concentrated in trade, services, and handicrafts, according to the High Commission for Planning. The institution notes that the informal sector remains a major entry point into the labor market, particularly for low-skilled workers and young people, at a time when formal job creation is insufficient to absorb the growing labor force.

At the global level, the World Bank points out that informality plays a social buffer role by providing income opportunities for a large segment of the population. However, it also stresses that the dominance of informal employment limits productivity gains, constrains tax revenue mobilization, and slows the expansion of social protection. Over time, this situation contributes to persistent labor market segmentation and weighs on the upgrading of Morocco’s economy.

In the medium term, a gradual reduction in informality relies on a phased approach. The Economic Commission for Africa underscores the need to combine targeted policies, including simplified formalization procedures, expanded social coverage, and support for very small enterprises. The goal is not to eliminate informality, but to facilitate its progressive integration into the formal economy, while improving job quality and stability.

Félicien Houindo Lokossou