As in many least developed countries (LDCs), unemployment is a major problem in
Morocco. The official unemployment rate of 10 per cent, in itself high,1 reflects only partially
the severity of the labor market disequilibrium in the country.2 Taking into account
underemployment, that is, where individuals are compelled to work less than the standard
working week (40 hours), conveys an even worse picture. The Department of Statistics in
Morocco provides an estimate of underemployment in 2007 of 10 per cent. Combining both
figures doubles the share of individuals willing to work more but failing to do so. An even
more worrying aspect of unemployment in Morocco is its high level among university
graduates. In 2007, their unemployment rate reached 21 per cent, a situation that reveals
both the mismatch between the demand and supply of skills and the inability of the economy
to offer jobs for skilled jobseekers.