Moroccan job cuts continue despite rising textile exports

19 Feb '15

3 min read

Despite an increase in exports of textile and leather products, the Moroccan textile industry recorded a loss of about 32,000 jobs between 2013 and 2014, says a study released by the High Commissioner for Planning (HCP).

As part of its monitoring and analysis of economic activity, the HCP revealed disconnect between employment and exports within the textile and leather industry, between 2013 and 2014.

According to the HCP, the added value of textile and leather industries improved by 1.2 per cent year-on-year in 2014, after falling 2.7 per cent in 2013, mainly driven by increase in number of textiles and clothing production units.

Improved foreign demand was also a primary reason for the revival of textile and leather activities, and exports of readymade clothing increased by 5.3 per cent in 2014.

However, the contribution of textile and leather industry in Moroccan total exports was 16.7 per cent in 2014, against an average share of 17.6 per cent over the past four years and 23.4 per cent between 2007 and 2010.

The recovery in exports last year, compared to 2013, failed to immediately create new jobs, the HCP said in its analysis. A loss of 32,000 jobs was recorded between 2013 and 2014, showing a 7 per cent drop annually.

There was a reduction of 14 per cent in the workforce in the textile sector, 4.6 per cent in clothing, and 8.6 per cent in the leather and shoe sector.

In fact, the downward trend in the number of people employed in the textile and leather sector had been continuing since 2007. Between 2008 and 2014, textiles and leather industry lost about 119,000 jobs as companies readjusted their staff numbers in response to slowdown in their activity, exacerbated by the international economic crisis.

In 2014, companies in the textile and leather industry were more cautious about the impact of the effects of recent resumption of exports, mainly because of poor economic performance in leading export destinations like France and Portugal, HCP said.

The share of textile and clothing units employing less than 6 people exceeds 51 per cent, while the share of those employing more than 50 people is 15.7 per cent.

The textile and leather industry accounts for nearly 42 per cent of industrial employment in Morocco. The textile segment contributes up to 19 per cent of the total production by this industry, whereas the clothing segment accounts for approximately 78 per cent, and the leather and travel goods segment for the remaining 3 per cent. (RKS)

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