Al-Skouri: State Support Drives Some to Work in the “Shadow Economy” and Hinders Professional Integration

Al-Skouri: State Support Drives Some to Work in the “Shadow Economy” and Hinders Professional Integration

- in Society

El Kory: State Support Drives Some to Work in the "Black Market" and Hinders Professional Integration

The Minister of Economic Integration, Small Enterprises, Employment, and Skills, Younes El Kory, revealed that the direct social support program presents significant challenges to efforts aimed at professional integration and combating unemployment. He asserted that a segment of beneficiaries is reluctant to enter the formal job market, fearing the loss of this support.

During a presentation to the Social Sectors Committee in the House of Representatives on Wednesday, July 2, 2025, El Kory explained that many beneficiaries refuse to register with the National Social Security Fund and prefer to work in the informal sector, with wages reaching 23 dirhams per hour, which negatively impacts the national economy.

The minister noted that this reality creates pressure on employers, especially given the limited wages that can be offered legally. He stated, "When a client visits one of the factories, they do not find enough workers, which adversely affects economic performance and competitiveness."

El Kory questioned whether public administrations understand these indicators, to which he answered: "No." He added that three months ago, he launched a parallel program to the official one to listen to politicians, parliamentarians, business people, and the unemployed to comprehend phenomena not covered by the current public policies.

The minister also addressed the employment situation in densely populated neighborhoods, such as the Al Rahma neighborhood in Casablanca. He pointed out that the decrease in the national unemployment rate during the first quarter of this year and the creation of 300,000 job opportunities (of which 282,000 were net positions according to the High Commission for Planning) do not reflect the reality of these neighborhoods, where young people refuse to move to job locations like Berrechid or Agadir, preferring to stay with their families for comfort.

El Kory mentioned, "I visited factories in Berrechid and found them nearly empty of workers," stressing that the issue of unemployment is not tied to a lack of job opportunities but rather to the imbalance between the geographical distribution of opportunities and the preferences of youth.

He explained that some regions have job offers with salaries that do not cover living expenses, but in areas like the Eastern region, where unemployment is high, such opportunities are absent, further complicating the situation.

The minister confirmed that the new government roadmap for employment concluded that revising the labor code is an essential condition to address the unemployment crisis, noting that young people without qualifications do not accept low wages unless they live close to their workplaces.

In conclusion, El Kory indicated that his ministry is coordinating with the Ministry of National Education to combat school dropouts through the "Second Chance" program, which has to date attracted only 20,000 beneficiaries. He emphasized the need for proactive planning and enhanced integration between policies to reduce youth unemployment and improve professional integration.

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