Morocco Q1 jobless rate stable at 9.6 pct
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Morocco Q1 jobless rate stable at 9.6 pct UPDATED 11 May 2009 | 11:03  
Morocco Q1 jobless rate stable at 9.6 pct

RABAT (Reuters) - Morocco's unemployment rate was unchanged year-on-year at 9.6 percent in the first three months of the year as growth in services offset a decline in the industrial workforce, official figures showed on Monday.

The number of jobless was 1.09 million in the first quarter, compared to 1.08 million in the same period a year earlier, the state High Planning Commission said in a statement. The number of Moroccans of working age grew 0.5 percent to 11.33 million.

Morocco's export industries have bled jobs as recessions in its biggest markets shrink demand for the north African country's textiles, auto parts and electronic components.

Some 60,000 jobs were lost in industrial sectors compared to the first quarter of 2008, a decline of 4.5 percent, the HCP said.

Service industries created a net 113,000 jobs while construction -- underpinned by infrastructure and social housing projects -- created 53,000 jobs.

The weakness in industry is complicating government efforts to create enough work in Morocco's fast-growing towns and cities and reduce the economy's reliance on agriculture.

According to an official report, Morocco needs to create 400,000 jobs per year over a decade from 2006 to prevent mass unemployment.

Non-farm growth slowed to an estimated 1.3 percent in the first quarter.

The central bank sees overall growth of around 5 percent this year thanks mostly to an increase in farm yields which is likely to boost household incomes.

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