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A recent study by the French association Evalliance highlights Morocco as the country with the third highest minimum wage among the main clothing suppliers in the European Union. With a minimum wage of $307 per month, Morocco outperforms rivals such as Bangladesh, Pakistan and Myanmar and outperforms Tunisia by 50%.
This advantageous salary position offers undeniable advantages to workers in the Moroccan textile sector, improving their purchasing power and living conditions. However, it also presents potential challenges for companies in the sector, which are under pressure to maintain their global competitiveness.
The study shows that Moroccan manufacturers may need to adjust their pricing strategies or reduce their profit margins to remain competitive in the international market compared to competitors with lower labor costs.
Balancing worker well-being and economic competitiveness
The study highlights the need to consider broader economic factors that go beyond simple salary comparisons. With a robust GDP of around $140 billion in 2023, the Moroccan economy appears dynamic, bringing higher wages into a global context.
Monetary valuation with the strong dirham, supported by a euro-dominated basket, offers a relative advantage. Nevertheless, the study suggests that the Moroccan textile industry needs to adapt to move up the value chain and position itself in the middle to high end of the market.
By placing greater emphasis on design, innovation and value-added services, Moroccan manufacturers can reduce the impact of labor costs on the final price of their products. This strategy could not only improve competitiveness but also open up opportunities in high-end markets.
Finding the balance between worker well-being and economic competitiveness represents a complex challenge for the Moroccan textile industry. While current wages have certainly improved workers’ lives, the study highlights the need for a strategic adjustment towards higher production Value creation and market diversification to ensure the long-term sustainability of the industry. By embracing innovation, the Moroccan textile industry can compete in the global competitive environment while protecting the well-being of workers and contributing to national economic growth.
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