Youth-focused_Labor_Market_STUDY_REPORT_ENGLISH_September_30.pdf

EDDATA II

TASK ORDER 10: Morocco Youth-Focused Labor Market Study Final Report September 2010

EdData II Technical and Managerial Assistance, Task 10 Task Order Number EHC-E-09-04-00004-00 RTI Project No. 09354.010

This publication was produced for review by the United States Agency for International Development. It was prepared by RTI International.

TASK ORDER 10: Morocco Youth-Focused Labor Market Study Final Report September 2010

Prepared for CTO: Kristen Potter and Dominique Zemrag Office of Education United States Agency for International Development (USAID/Morocco)

Prepared by RTI International 3040 Cornwallis Road Post Office Box 12194 Research Triangle Park, NC 27709-2194

RTI International is a trade name of Research Triangle Institute.

The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government

Table of Contents Table of Contents ............................................................................................................... iii

Exhibits .............................................................................................................................. iv

Acronyms ........................................................................................................................... vi

Acknowledgements .......................................................................................................... viii

Glossary ............................................................................................................................. ix

Executive Summary .............................................................................................................x Introduction ..............................................................................................................x Analysis of Key Youth Issues ..................................................................................x

Future Demands ...........................................................................................x Key Players’ Capacity................................................................................ xi Labor Market Signals ................................................................................. xi Conclusions ............................................................................................... xii

Recommendations ................................................................................................ xiii

I. Introduction

1.1 Purpose and Scope of the Study

1.2 Methodology

1.3 Constraints

II. Context and Background

2.1 Context

2.1.1 Country Background

2.1.2 Economic Situation and Challenges

2.1.3 Social Situation

2.2 Youth Issues

2.2.1 Youth Unemployment

2.2.2 Educational Attainment

III. National Youth Strategy and Programming

3.1 National Youth Strategy

3.2 Youth Programming

3.2.1 Governmental Initiatives

3.2.2 Bi-lateral and Multi-lateral Initiatives

IV. Findings

4.1 Key Informants and Stakeholders

4.1.1 Future Demands

4.1.1 Regional Highlights

4.2 Youth

4.2.1 Youth Findings

4.2.2 Labor Market Signals

4.3 Youth Associations

TASK ORDER 10: MoroccoYouth-Focused Labor Market Study - Final Report iii

4.3.1 Youth Association Findings

4.4 Vocational Training Service Providers

4.4.1 Vocational Training Service Provider Findings

4.4.2 Conclusions and Recommendations from Vocational Training

Service Providers

4.5 Private-Sector Enterprises

4.5.1 Private-Sector Enterprise Findings

4.5.2 Recommendations for Out-of-School Youth and Private Sector

Employment

V. Strategic Options for USAID Programming

5.1 Mapping the Key Stakeholders

5.2 Geographic Priority Areas

5.3 Considerations for Developing Programmatic Areas

5.3.1 Introduction

5.3.2 An Integrated Vocational Training and Employment-Related

Service Delivery System

5.3.3 Programmatic Development

5.3.4 Institutional Capacity Development

5.4 Programmatic Priority Areas

VI. Conclusions and Recommendations

6.1 Conclusions

6.2 Recommendations

VII. Appendices

Appendix 1: Assessment of Youth-Focused Labor Market in Morocco....................... 1-1

Appendix 2: Focus Group Discussion Guides .............................................................. 1-2

Appendix 3: Youth Focus Group Member Informants ................................................. 1-3

Appendix 4: List of Youth Associations ....................................................................... 1-4

Appendix 5: List of Vocational Training Service Providers ......................................... 1-5

Appendix 6: List of Private-Sector Businesses............................................................. 1-6

Appendix 7: Profile of Vocational Training and Employment-related Service Providers1-7

Appendix 8: Governmental Vocational Training and Employment Service Coverage by Program, Region, and Sector ............................................................................... 1-8

Appendix 9: Programmatic Areas to Increase Access to Employment ........................ 1-9

Appendix 10: References ........................................................................................ 1-10

Exhibits Table 1. Government Entities Related to Education, Training, and Employment of iv EdData II Task Order 10 – Morocco Youth-Focused Labor Market Study – Draft Report

Youth

Table 2. Economic Sectors and Type of Entry-level Worker

Table A-1. Revised Deliverables

EdData II Task Order 10 – Morocco Youth-Focused Labor Market Study – Draft Report v

Acronyms ADB African Development Bank

ALEF Advancing Learning and Employability for a Better Future

ANAPEC National Agency for Promoting Employment and Skills (l’Agence Nationale de Promotion de l’Emploi et des Compétences)

CATS Credit Accumulation and Transfer System

CBMT Competency-based Modular Training

CBO Community-based Organization

CIOPE Information and Orientation Center for Employment (Centre d’Information et d’Orientation pour l’Emploi)

CFA Training and Apprenticeship Center

CJNA National Council for Youth and the Future

CNEF National Education and Training Charter

CRI Regional Investment Center (Centre Regional d’Investissement)

CV Curriculum Vitae

EEA Education and Employment Alliance

EEP Education Emergency Program

EN Entraide National

FAM Forum des Alternative Maroc

FG Focus Group

GDP Gross Domestic Product

GOM Government of Morocco

ILO International Labor Organization

INDH National Initiative for Human Development

IPEC International Programme for the Elimination of Child Labor

LMIS Labor Market Information System vi EdData II Task Order 10 – Morocco Youth-Focused Labor Market Study – Draft Report

MDG Millennium Development Goals

MENA Middle East and North Africa

MOA Ministry of Handicrafts

NGO Nongovernmental Organization

NPNJ New National Policy for Youth

OFPPT Vocational Training and Labor Promotion Office (Office de la Formation Professionnelle et de la Promotion du Travail)

RPL Recognition of Prior Learning

SSY State Secretariat for Youth

UNDP United Nations Development Programme

UNFPA United Nations Family Planning Agency

UNICEF United Nations Children’s Education Fund

USAID United States Agency for International Development

VT Vocational Training

VTC Vocational Training Center

WHO World Health Organization

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Acknowledgements The evaluation team would like to thank the Ministère de l’Emploi et Formation Professionnelle and the Ministère de la Jeunesse et du Sport for important contributions to this report. Additionally, the evaluation team owes special thanks to many other individuals who were interviewed and consulted during the course of the study. These special thanks should be extended to:

• Mr. Mohamed Lemrabet, Directeur du Centre Régional d’Investissement à Doukala- Abda

• Mr. Ahmed Ammor, Business Engineer du Centre Regional d’Investissement à Fez

• Mr. Mehdi Belkhayat, Vice President of Chamber of Commerce, Fez

• Mr. Mohamed Sottou, Directeur, Chamber of Commerce, Tetouan

• Mr. Hassam Salmi M’Rabet, Chef Division Investissement, du Centre Régional d’Investissement à Tangier/Tetouan

• Mr. Allal Kadim, Délégué de l’Artisanat à Salé

• Mr. Ahmed Doudlali, Cadre Administratif à la Délégation de l’Artisanat à Salé

• Mr. Mohamed Bahter, Coordinateur du Terrain. Near East Foundation–Casablanca

• Mr. Hamman Hatbi, Délégué de l’Entraide Nationale–Mohammedia–Casablanca

• Mr. Youssef Cheffouii, Président de l’Association Amal Salé à Salé

• Mrs. Ibtissam Lissan El Hak, Assistante Sociale, Fondation Hassan Snoussi, Salé

• Mr. Sifeddine Ameziane, Directeur Régional de l’ANAPEC, Fez

• Ms. Iman El Bakkali, Coordinatrice, Fondation Sedraoui, Tetouan

• Ms. Fouzia Mamoun, Présidente, ANJAL, Tetouan

• Ms. Aouatif Amria, Directrice, ALCI Mouvement Alternative Citoyenne, Fez

We also express our gratitude to the participants of the focus groups and interviews held across the five regions of the study. These participants were youth, vocational training service providers, youth associations, private sector representatives, and representatives from national and local government. At the same time, we thank all of the people we met during the study for their time, openness, enthusiasm, and cooperation.

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Glossary Competency-based training—Training that gives more emphasis to a trainee’s ability to master specific practical tasks or competences than to the level or type of certification— or to the length of training—they have received.

Demand-driven—When training is demand-driven, it is determined by whether there is a labor market demand for particular skills.

Non-formal vocational training—Structured, organized vocational skills development training programs outside the Ministry of Education and Vocational Training skills development system (e.g., Entraide Nationale).

Formal vocational training—Skills development system and organized training used for the development of craftsmen in training centers under the mandate of the Ministry of Employment and Vocational Training. Training is provided to youth who have completed their formal education and certificates and/or whose diplomas are not recognized by the formal school system. The training can be variable in length—from modular courses, to short duration courses, to courses that last 1 to 2 years.

Qualifications framework—An instrument for the development, classification, and recognition of skills, knowledge, and competencies along a continuum of agreed-upon levels. It is a way of structuring existing and new qualifications, which are defined by learning outcomes, i.e., clear statements of what the learner must know or be able to do, whether learned in a classroom, on-the-job, or less formally.

Skills development—The acquisition of practical competencies, know-how, and attitudes necessary to perform a trade or occupation in the labor market. Skills can be acquired either through formal public or private schools; institutions or centers; non-formal, traditional apprenticeships or non-formal, semi-structured training.

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Executive Summary

Introduction U.S. Agency for International Development (USAID)/Morocco tasked RTI International with conducting a Youth-Focused Labor Market study in June 2010 to identify potential formal-sector employment opportunities for marginalized, out-of-school youth across five geographical regions of Morocco. The purpose of the study is to help identify strategic roles that will enable USAID to build the capacity of Morocco’s workforce development initiatives for marginalized youth. An evaluation team of four members conducted 27 focus group meetings and 50 individual interviews with representatives from four different stakeholder groups1 to determine current and potential capacity to transition marginalized youth into entry-level, formal-sector employment as well as specific assistance opportunities for USAID. The study was conducted across five different geographical regions—Casablanca, Fez, Tetouan, Salé, and Doukala—during a six-week period of time in June and July 2010.

Analysis of Key Youth Issues

Future Demands The economic sectors that offer the greatest opportunity for unskilled and semi-skilled entry-level workers across the five regions of the study are the handicraft sector, service sector, and agro-industrial processing. Other sectors that also have potential for unskilled and semi-skilled workers, but have a greater need for skilled workers, are commerce, construction, textiles, and tourism. The economic sectors were identified via systematic interaction with a number of local Centres Regionaux d’Investissement (CRIs, Regional Investment Centers) and Chambers of Commerce, and were validated by l’Agence Nationale de Promotion de l’Emploi et des Compétences (ANAPEC, the National Agency for Promoting Employment and Skills). The type of worker that was needed per sector was identified by private-sector enterprises. Certain sectors, such as tourism and handicrafts, have been supported by vocational training service providers, such as the Office de la Formation Professionnelle et la Promotion du Travail (OFPPT, Vocational Training and Job Promotion Office) and the Ministère d’Artisanat (Ministry of Handicrafts). However, other sectors, such as the construction or service sector, do not have strong links with the vocational training service delivery system for entry-level workers.

At the same time, the specific skill sets that unskilled and semi-skilled entry-level employees must possess were identified by the vocational training service providers and

1 Unemployed and employed youth, youth associations, representatives from the vocational training service delivery system, and representatives from the private sector.

x EdData II Task Order 10 – Morocco Youth-Focused Labor Market Study – Draft Report private-sector enterprises. The skill sets included technical competence in the specific trade relevant to the sectors noted above; work experience; and personal attributes, such as a sound work ethic, responsibility, honesty, motivation, physical strength, and communication skills. It is important to note that some of these are general or “soft” skills. The skill sets across most of the entry-level positions for unskilled and semi-skilled workers were similar, irrespective of the economic sector. This suggests that efficiencies in training could be high.

Key Players’ Capacity Several key providers for training and capacity building were assessed: (a) youth associations; (b) non-formal vocational training service providers, such as Entraide Nationale or Maison des Jeunes; and (c) public and private formal vocational training service providers, such as OFPPT. Some of the weaknesses brought to light in the assessment can be corrected; some are structural and difficult to correct. However, if the system was well-integrated across non-formal and formal service providers and was to have a common qualifications framework (which is not currently the case), one sector’s weaknesses could be offset by another’s strength, and youth would receive better service.

The relative strengths and weaknesses of the key players’ capacities are as follows.

The greatest asset that youth associations possess with respect to marginalized, out-of-school youth is the degree of trust that exists between the associations and the target population. Youth understand very well that the mission of the youth associations is to assist them in their efforts to become contributing members of society. While the youth associations have the trust of marginalized, out-of-school youth, they do not have the financial or technical capacity to provide all of services that are needed by youth to become oriented toward, prepared for, and transitioned into formal-sector employment.

The non-formal vocational training service delivery system does not have the technical capacity or the institutional linkages with the private sector to prepare marginalized youth for entry-level employment.

The formal-sector (both public and private) vocational training system has more capacity to train marginalized youth for formal-sector employment. However, marginalized, out-of-school youth cannot gain access to the formal vocational training system because they do not meet the minimum entry requirements (i.e., education qualifications such as grade 9 certification).

As will be seen, presently these organizations cannot play to their own relative strengths because there is no clear system within which they belong and complement one another.

In addition, there is no governmental strategy and/or initiative to concertedly improve on their weaknesses.

Labor Market Signals Out-of-school youth learn about entry-level unskilled or semi-skilled employment opportunities through an informal network of personal contacts, word-of-mouth, and/or

EdData II Task Order 10 – Morocco Youth-Focused Labor Market Study – Draft Report xi door-to-door visits to employers. There is no national organization or institution that provides employment-related services to unskilled and semi-skilled workers regarding entry-level employment opportunities. The organizations with which marginalized youth have close contact—youth associations—do not have established linkages with or access to private-sector enterprises. Linkages and communication mechanisms between entry-level job seekers, youth associations, non-formal vocational training service providers, and private-sector enterprises are informal and, for all practical purposes, non-existent.

Conclusions

1. Entry-level employment opportunities do exist in all of the economic sectors across the five-regions of Morocco; however, the majority of entry-level positions are for skilled labor. Lack of properly functioning labor market signals (including inefficient recruitment processes, mismatch in available employee skill sets and available positions, and mismatch in employee expectations regarding pay and benefits, all hamper the clearing of the unskilled job market).

2. Many marginalized youth have had negative experiences with private-sector enterprises and they feel as if they are underpaid and do not receive the benefits that labor laws entitle them to. At the same time, youth are pessimistic about their chances of finding a job because of a lack of opportunities and their own lack of qualifications. They also expressed frustration with perceived favoritism where even qualified youth are denied employment because the positions are given to those who have connections (and not necessarily qualifications). For these reasons, youth frequently seek self-employment opportunities, such as street vending. Despite the seemingly insurmountable difficulties that the youth face, participating youth remain hopeful that in the future their situation will change for the better. The sense of specific pessimism with respect to current opportunities, but general hopefulness with regard to the broader future, is something that could be capitalized on, if the service providers’ weaknesses could be remedied, and if there were a better-integrated system.

3. Despite the need in the private sector for unskilled laborers, there are limited linkages and communication between the private sector and youth associations and non-formal vocational training service providers.

4. Private-sector formal employment opportunities should not be the only employment option considered for marginalized youth. Informal sector employment as well as self-employment options should be supported.

5. Youth associations and non-formal vocational training programs lack capacity and/or resources necessary to provide marginalized youth with the full support services needed for formal-sector employment, but they do have the capacity to provide some important services, including orientation and other support services (e.g., “accompaniment” or supervised, on-the-job training).

xii EdData II Task Order 10 – Morocco Youth-Focused Labor Market Study – Draft Report

6. Despite limited communication and/or collaboration between the different youth-serving stakeholders, important synergies and commonalities exist between them and should be exploited. Both non-formal and formal vocational training and employment-related service providers strive to help youth successfully integrate into their communities and become contributing members of society. The knowledge that the formal and non-formal sectors have about these different client groups could contribute to the development of a common vocational technical system.

7. Non-formal vocational skills development programs have shown success in giving marginalized populations, including out-of-school youth, a better opportunity to obtain informal-sector employment; however, it is unknown whether non-formal programs can provide marginalized populations with transferable skills that are needed to respond to changes in the labor market and work environment.

8. Private-sector employers found that even graduates of OFPPT were not well prepared, and that additional on-the-job training was needed. In fact, in some cases, even basic skills, such as literacy and numeracy, as well as soft skills such as solid work ethic and an ability to work in teams, were found wanting.

Recommendations In many respects, the current training system in Morocco is like a market without weights and measures, where some merchants sell by volume and some by weight, where the units of volume and weight are not standardized, and where there are no quality standards. The result is that it is exceedingly difficult for individuals to interact with each other (providers to users, providers to providers, etc.), and there is low portability or even knowledge about who has what real skills (including those acquired informally). The only vocational training and employment-related services that out-of-school Moroccan youth are able to gain access to are those that are provided by non-formal governmental and nongovernmental service providers, because they do not have the educational certifications nor the basic skills associated with such certification needed to gain entrance into formal vocational training programs.

To ensure that out-of-school youth can progress upwardly through a vocational training service delivery system, both the non-formal and formal vocational training systems must develop and embrace a common structure that will facilitate progression for trainees through successive trainings in either a horizontal or vertical manner. Successful progression for a trainee can be achieved through a Credit Accumulation and Transfer System (CATS), which allows a trainee to achieve mobility and lifelong learning through transferability of credits; Recognition of Prior Learning and Record of Achievement mechanisms; and establishment of a Vocational Qualifications Framework for certification purposes. Without a better-integrated certification and qualification system, including more modular (and public domain) approaches to training and certification, it will be difficult to make progress in the long run; in the current set-up, both competition and collaboration are stymied.

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Specific recommendations to increase access to employment for marginalized youth follow, and are summarize in a table provided in Appendix 9.

1. Promote the development of an Integrated Vocational Training and Employment- Related Service Delivery Framework that is linked to the private sector across both non-formal and formal service providers.

Over the years, many youth have left school before completing grade 9 of general education and, because of this, are not able to enroll in formal skills development programs such as OFPPT. Until an integrated vocational training and employment-related service delivery system is established, near term interventions could be initiated that would assist marginalized youth to gain access to the formal vocational training system.

Here are several measures that should be promoted as a means by which to reform the current system.

The grade 9 prerequisite should be removed from OFPPT courses and replaced by course-specific entry requirements and challenge tests that are more closely aligned to the training being delivered.

a. The formal vocational qualifications framework (currently being developed by the Europeans) should incorporate qualifications and pathways that allow those with limited education to undertake formal programs that lead to nationally recognized qualifications.

b. Courses that specifically cater to the needs of the lowly educated should be added.

Basic literacy and numeracy training could be provided by youth associations as well as non-formal and formal education centers.

c. Institutional instructors and managers should receive professional development on how to assess skills and develop and deliver courses for trainees with low levels of education.

d. Pre-vocational course pathways to address any basic skills gaps should be established so those with little prior education can enter into formal training, such as apprenticeships.

The more long-term goal of adopting an Integrated Vocational Training and Employment Service Delivery Framework would require the development of the following components:

- Competency-based modular training programs

- CATS

- Recognition of Prior Learning

- Trainee Record of Achievement

- Vocational qualifications network

- Accreditation of non-formal and formal schools and programs

2. Assist youth associations to develop employment-related services.

xiv EdData II Task Order 10 – Morocco Youth-Focused Labor Market Study – Draft Report

Out-of-school youth can be served by an array of employment-related services to help them obtain gainful employment. The type of employment-related services that youth associations can provide for out-of-school youth should include (1) career guidance and orientation; (2) basic education (literacy and numeracy); (3) employability/life skills training; (4) job matching; and (5) support services, such as job placement, job search, and follow-up. Youth associations can serve an intermediary role between out-of-school youth, non-formal vocational skills development programs, and the private sector. The function of this role is to (1) gather information on local labor market needs; (2) inform youth of employment opportunities; (3) link them to non-formal vocational skills development service providers; and/or (4) link them to formal-sector or self-employment opportunities. At the same time, youth associations can assist private-sector enterprises in recruiting youth for entry-level positions.

However, before youth associations are able provide any of these services, their capacity across all of these services must be further developed. In addition, the service outlined cannot be developed in isolation by the youth associations. To develop effective and efficient employment-related services, linkages must be developed so that both the service provider and the private sector jointly determine the nature of the services.

3. Assist non-formal training institutions to develop industry-specific skills development programs.

To effectively prepare marginalized, out-of-school youth for formal-sector employment, non-formal vocational skills development programs need to align their training efforts and develop skills development programs that address the demands of the economic sectors that provide the greatest opportunities for entry-level employment. To provide demand-driven vocational skills development training, the non-formal skills development programs need to identify the skill sets needed for entry-level employment opportunities by conducting training needs assessments for targeted employment positions in the different economic sectors. Based on the information collected from the training needs assessments, training curricula should be developed by the skills development service providers and validated by private-sector enterprises. Training courses should be designed to provide practical, hands-on experience for the trainees that will provide them with the knowledge, skills, and attitudes demanded by private-sector enterprises for entry-level employment. At the same time, the pedagogical and technical skills of the non-formal institution teaching staff should be further developed to ensure that they are able to deliver the new course curricula.

4. Strengthen linkages among the private sector, youth associations, and non-formal vocational skills development service providers, and encourage employers to develop youth employment services.

Private-sector employers from economic sectors that need entry-level workers are potential opportunities for youth associations and non-formal vocational skills development programs that strive to integrate out-of-school youth into gainful employment. If a pipeline for entry-level workers can be established so that private-sector enterprises know that youth are being trained for formal-sector, entry-level employment opportunities, and youth associations as well as non-formal vocational training programs

EdData II Task Order 10 – Morocco Youth-Focused Labor Market Study – Draft Report xv know that private-sector enterprises will hire competently trained youth, then there is greater likelihood that these stakeholders will develop a mutually beneficial partnership.

Also, by establishing stronger linkages and enhanced communication through such mechanisms as public-private-sector dialogue, the representatives of the private sector will have greater opportunities to communicate with other key stakeholders. Such communication could be useful for (1) identifying opportunities for workplace training as part of a vocational training program; (2) providing opportunities for visits and projects in a variety of workplaces; (3) encouraging private-sector enterprises to undertake in-house vocational training; (4) partnering with vocational training institutions and/or associations to prepare and deliver employability skills training as a core module of vocational training programs; and (5) identifying job opportunities for vocational training graduates.

5. Consider self-employment as an option for some marginalized youth.

A comprehensive career counseling and orientation program should introduce out-of-school youth to various employment options, and self-employment is a viable employment option for potential job seekers. Each individual should make an informed decision after considering the economic profile of the region as well as his/her aptitude and interests. Youth associations and non-formal training service providers should provide courses and counseling regarding how to establish one’s own business.

6. Conduct future research studies related to marginalized youth and employment.

Additional research is needed to deepen understanding of the barriers to youth participation in the Moroccan economy. The knowledge gleaned from this research could guide future interventions designed to mitigate the barriers to youth participation.

Recommended areas for further exploration include the following:

a. Trainee Tracer Study

b. Evaluating Apprenticeship Programs

c. Evaluating the Self-Employment Environment xvi EdData II Task Order 10 – Morocco Youth-Focused Labor Market Study – Draft Report

EdData II Task Order 10 Morocco Youth-Focused Labor Market Study

Draft Report September 2010

I. Introduction

1.1 Purpose and Scope of the Study

The United States Agency for International Development (USAID)/Morocco tasked RTI with conducting a Youth-Focused Labor Market study across five regions of Morocco in June 2010. This study responds to a growing interest in international youth programming within USAID. In Morocco, the study is overseen by the Education Department and viewed as an integral aspect of the Agency’s Youth Strategy for 2009–2014.

The purpose of the assessment was to identify strategic roles that will enable USAID to build the capacity of Morocco’s workforce development initiatives and enhance the transition of marginalized youth into entry-level, formal-sector employment. The assessment focused on the identification of workforce-related needs and priorities for sectors with the greatest potential for entry-level employment growth, with the goal of contributing to the USAID Mission’s workforce initiatives in Morocco. Specifically, the focus was directed toward the following four elements.

1. Future Demands: Identification of sectors with the potential to increase entry-level employment opportunities for marginalized male and female youth and the identification of skill sets required for unskilled and semi-skilled employment.

2. Key Players’ Capacity: Identification of stakeholders’ (a) priorities for unskilled and semi-skilled employment opportunities and (b) willingness and institutional capacity to address job creation and skill development opportunities and challenges for entry-level, formal-sector employment.

3. Current Programs: Identification of relevant skill development activities currently provided by nongovernmental organizations (NGOs) and the public and private sectors.

4. Evaluation of Labor Market Signals: Evaluation of the effectiveness of labor market communication mechanisms vis-à-vis demand and supply signals for entry-level positions across those sectors with the greatest potential.

1.2 Methodology

To address the focus of the evaluation, the Evaluation Team took the following steps.

1. Reviewed authoritative reports on the status of youth, government, and donor programming strategies and other relevant documents.

EdData II Task Order 10 – Morocco Youth-Focused Labor Market Study – Draft Report 1

2. Met with (i) USAID officials and staff from other international development organizations; (ii) staff from previous and current USAID projects; (iii) government representatives from key ministries, departments, agencies, and programs; (iv) representatives from the private sector and private vocational training service providers; and (v) representatives from youth associations.

3. Conducted structured focus groups and interviews with the key stakeholders: private-sector companies, vocational training service providers, youth associations, and marginalized youth. (The detailed Scope of Work is attached in Appendix 1.)

The study was implemented by two Evaluation Teams (each team had two members) that were responsible for conducting the study across five regions2 that had been selected by USAID/Morocco. Prior to the field visits, the Evaluation Teams conducted preliminary meetings with USAID to clarify assessment goals, resources, plans, and assessment locations. Focus group and interview questionnaires were developed to reflect the project’s assessment goals.

Each visit to a region was initiated by a visit to the Centre Regional d’Investissement (CRI, Regional Investment Center) and the local Chamber of Commerce. The CRIs are active in each region and work to attract investment. They provided information on local economic activities as well as private-sector and government investment trends. The Chambers of Commerce represent the local business community perspective and provided relevant information. In addition, both the CRIs and the Chambers of Commerce helped identify key players for consideration as participants in the focus groups and interviews. At the same time, the Evaluation Teams liaised with an umbrella youth association in each region to mobilize local youth associations and marginalized youth to participate in the scheduled focus groups and interviews. Focus group discussions, as well as individual and group interviews with key stakeholders from the five regions, were conducted during a seven-week period from June 29 to August 6, 2010.

The following are the principles that guided the implementation of the study:

Work with and through bilingual (Arabic-French) Evaluation Team members. This allowed the field work activities to be carried out in either Arabic or French, depending on the participant/interviewee language preference.

Work in partnership with USAID. The Evaluation Teams were in frequent communication with the USAID Mission in Morocco. The Evaluation Team participated in the initial, mid, and final briefings of the study. In addition, a USAID staff member frequently accompanied the Evaluation Team to the meetings that took place in Rabat and Casablanca.

2 The five regions in which the study was conducted were Casablanca, Doukala, Salé, Tetouan, and Fez (urban and rural).

2 EdData II Task Order 10 – Morocco Youth-Focused Labor Market Study – Draft Report

Listen to Moroccan youth. To better understand the situation of Moroccan marginalized youth vis-à-vis access to formal-sector employment, frequent interaction with the target population was facilitated through the organization of focus groups and interviews. Local youth associations helped the Evaluation Team choose 112 focus group participants according to specific criteria, to ensure that each group was representative of the population in each selected area, ranged in age from 18 to 25 years, included both genders, included different education attainment levels, and represented both employed and unemployed youth. Appendix 3 provides a breakdown of focus group participants by gender, employment status, and region.

Listen to Key Stakeholders. The Evaluation Team conducted focus groups and individualized interviews with representatives from the different stakeholder groups, such as government officials, representatives from the private sector, vocational training and employment-related service delivery providers, community leaders, and representatives from youth associations across the five regions. Support from these key stakeholders is considered critical to the future success of any youth initiative that supports the transition of marginalized youth into entry-level, formal-sector employment.

Representatives of the different stakeholder groups were identified in the following manner. First, non-formal and formal service providers that provide vocational training services to youth between the ages of 18 to 25 were invited to participate in the focus groups and/or interviews. Second, local private-sector enterprises were identified randomly from a list of enterprises provided by CRIs and the Chambers of Commerce for those sectors that have the greatest potential for entry-level unskilled and semi-skilled workers. Third, the youth associations were identified by lists of such associations that worked with marginalized youth in the local communities. These lists of associations were obtained from an umbrella association to which all youth associations belong.

Based on the desk research and qualitative information collected, RTI identified the labor market trends and formal-sector workforce access opportunities/barriers for marginalized, out-of-school youth. Given the findings from the study, RTI identified several strategic options and programmatic interventions that USAID might consider in its workforce development initiatives to support an enabling environment for marginalized, out-of-school youth and to enhance the transition of this target population into entry-level, formal-sector employment opportunities.

1.3 Constraints

During the latter weeks of July 2010, the Evaluation Teams found it increasingly difficult to mobilize certain key stakeholders because many were on annual leave and unable to participate in certain activities, such as focus groups and/or interviews.

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II. Context and Background

2.1 Context

2.1.1 Country Background

Morocco is a country located in the northwestern corner of the African continent. The system of government is a constitutional monarchy that regained its independence from France in 1956. The population of Morocco is approximately 31.2 million, with a gross domestic product (GDP) per capita of $4,108 (United Nations Development Programme [UNDP] Human Development Report, 2009). Morocco is a middle-income country, where 15% of the population is living below the poverty line (CIA World Fact Book, 2010), the life expectancy rate is 71.0 years, and approximately 70% of the population has access to health services (World Health Organization [WHO] Country Profile, 2004).

To further understand the Moroccan context, it is important to note that the county is experiencing a demographic transition with moderate rates of fertility (2.27) and mortality (4.74), rapid urbanization, and a modestly growing economy that posted a GDP growth rate of 2.6% in 2009 (European Training Foundation, 2003). Based on estimates from 2007, the 2010 UNDP Human Development Report ranks Morocco 130 out of 182 in its Human Development Index ranking, putting it ahead of Egypt and Yemen, but below Algeria and Tunisia in the Arab World (UNDP Human Development Report, 2010).

The Constitution of Morocco provides for compulsory, free, and universal education for children between the ages of 6 and 15. As a result, the gross enrollment rate for primary education was 107% in 2007, though the net enrollment rate was only 89% because of inappropriate timing of entry and/or repetition. In lower secondary, the gross enrollment rate was 74%; by upper secondary it descends to 38%, showing the system’s low capacity to provide access to all youth (World Bank, 2010).

Even though education is available to almost all children at the primary level, 44.4% of the general population in Morocco is illiterate, and among the female population, the illiteracy rate is 63% (UNDP, 2010). Floris (2007) suggests that 32.6% of rural youth are illiterate. This figure is significant in the Moroccan context because 45% of the population lives in rural areas. With respect to length of school attendance, the World Bank (2010) states that nationally, the median length of school attendance is 10 years, and boys remain in school longer than girls (CIA Fact Book, 2010). Difficult economic conditions for many families contribute to the fact that 1 million children between the ages of 9 and 14 are out of school, and more than 300,000 students drop out every year (Agarwal-Harding, 2008).

2.1.2 Economic Situation and Challenges

The major sectors of the Moroccan economy are agriculture, industry, and services (CIA World Fact Book, 2010). Morocco, like other countries in the Middle East and North

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Africa (MENA) region, has been increasingly faced with political, social, and economic challenges. Modest economic growth coupled with the increase in population has contributed negatively to the challenges of unemployment and poverty, particularly at the urban level. According to the European Training Foundation (2003), the urban population is growing at a higher rate (5%) than the national economy, which had a real GDP growth rate of 2.7% in 2007, 5.6% in 2008, and an estimated 4.9% in 2009 (CIA World Fact Book, 2010). As a means by which to address this concern, King Mohammad VI introduced the National Initiative for Human Development (INDH) in 2005 in an effort to address poverty and exclusion issues, including how these issues relate to youth. This initiative focused on a rural electrification program, review of the tourism and agricultural sectors, and the provision of decent housing for urban slum dwellers

Despite the improvement in recent years in the Moroccan national economy and the positive impact that this improvement has had on the overall unemployment rate, which dropped from 16% in 1994 to 11% in 2005 (Boudarat and Ajbilou, 2007), the imbalance between population and economic growth has produced an urban unemployment rate of 21.7% for the general population and above 30% for youth. Boudarat and Ajbilou (2007) suggest that the Moroccan labor market has been deteriorating since the 1980s (the national unemployment rate rose from 8.8% in 1971 to 16% in 1994), and that such deterioration has led to a transition from formal-sector wage employment to informal-sector employment opportunities. This transition has produced an increasingly more difficult and less accessible job market for all youth.

Concerns of unemployment, poverty, illiteracy, and access to relevant education are impacting negatively, both on the labor market and on Moroccan youth. A poorly functioning labor market limits access to economic opportunity for the general population and presents significant challenges for out-of-school, marginalized youth. Floris (2007) suggests that as many as 400,000 unskilled youth are confronted with the challenge of integrating into the labor market on an annual basis.

Therefore, the fact that the Moroccan economy, even if it grows at a reasonable pace, is still not growing fast enough to generate employment opportunities for the growing population, suggests strong labor market and skill imbalances and labor market inefficiencies. It seems unwise or unlikely that sheer economic growth could be ramped up enough to absorb all available labor in spite of the skills and labor market imbalances.

Thus, there is an even more urgent need for the labor market to function effectively to facilitate the transition of youth into gainful employment.

2.1.3 Social Situation

Population growth and urbanization. The current growth rate of the Moroccan population is 1.1% (CIA World Fact Book, 2010). Presently, 55% of the population lives in urban areas and 45% in rural areas (CIA World Fact Book, 2010). Current forecasts indicate that Morocco’s urbanization level will increase to 63% in 2015 and 70% by 2020 (UNDP Human Development Report, 2010). Estimates suggest that 50% of the national

EdData II Task Order 10 – Morocco Youth-Focused Labor Market Study – Draft Report 5 population (approximately 31.2 million) is under the age of 25; the median age in Morocco is 25 years.

Rural poverty. Although Morocco is a middle-income country, it continues to face high levels of poverty and inequality. The national poverty level has increased from13.1% in 1990–1991 to 19.0% in 1998–1999, an increase from 3.4 to 5.3 million people (World Bank Country Assistance Strategy Note, 2008). Poverty is predominantly a rural phenomenon, as 45% of the population lives in rural areas. Estimates suggest that 27.2% of the rural population lives under the national poverty line, compared to 12% in urban areas. It is estimated that approximately 64% of the poor population is illiterate.

2.2 Youth Issues

The youth population (15 to 25 years of age) in Morocco has been increasing slowly but steadily according to the International Labor Organization (ILO) (2005). ILO statistics suggest an increase of 19.6% in 1981, 20.7% in 1994, and 21.3% in 2002. These figures reflect a youth population of 3.9 million in 1982, 5.4 million in 1994, and approximately

6.4 million in 2004. At the same time, 30 to 50% of the youth population, across both urban and rural settings, is not gainfully occupied in either academic pursuits or work-related activities. This is due in part to the large percentage of the Moroccan population that is under 25 years of age, as well as a less than optimal economic growth situation and an education and training sector that may not be responding adequately to the needs of the labor market.

Evidence of this is the fact that youth unemployment in Morocco is not a phenomenon experienced only by those who have dropped out of school. In fact, according to Floris (2007), youth unemployment rates are also high among the most educated groups in the country. For example, there is a 30% unemployment rate among those who have completed the baccalaureate and a 45% unemployment rate for those who have a university diploma, whereas the unemployment rate for those who do not have a diploma is only 8%.

Many of Morocco’s university graduates cannot find jobs. In fact, 30% of university graduates go on to study in professional training institutes (EDC, 2007). These statistics suggest that youth unemployment is not just a phenomenon experienced by urban youth who have dropped out of the educational system and lack educational credentials. The sentiments across all youth groups, irrespective of educational credentials, vis-à-vis their prospects toward gainful employment, are characterized by feelings of frustration, anxiety, and disappointment (EDC, 2007).

Despite the fact that youth unemployment in Morocco is a challenging issue, many children and youth leave school early every year for different reasons. UNICEF (2007) figures suggest that 22.5% of all children aged 9–15 are out of school in Morocco and estimates that 50% of children and youth drop out between primary and middle school.

Lastly, of the 1 million children who have dropped out of school, estimates suggest that

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600,000 to 800,000 are currently working, despite national legislation that prohibits the employment of minors under 15 years of age (ILO, 2004).

UNICEF (2003) found that the primary reason that children leave school early is to find a job and produce income. Unfortunately, these employment opportunities require working long hours for little pay and sometimes under hazardous conditions. UNICEF learned that the major underlying reasons for dropping out of school are poverty; unattractive and useless educational content; emotional and physical violence by teachers and peers;

parents’ analphabetism and ignorance; and bad educational results due to poor attendance, lack of interest, and lack of support.

2.2.1 Youth Unemployment

Internationally, according to the ILO, youth unemployment rates are much higher than overall unemployment rates across all regions of the world. The ILO (2005) estimates that the youth-to-adult employment ratio is 3:5.