Is Morocco Becoming Europe's Backyard? Engineers Earn €1,500 vs €6,500

Morocco World

24-07-2025

Marrakech – Morocco's Industry and Trade Minister, Ryad Mezzour, sparked controversy in mid-July when he presented the significant wage gap between Moroccan and European engineers as a strategic advantage during an official meeting at the German ambassador's residence in Rabat.
Mezzour revealed that the same highly skilled Moroccan engineer who would cost a company in Germany about €6,500 monthly can be hired in Morocco for just €1,000 to €1,500.
The minister described this stark disparity as an opportunity for foreign companies while suggesting engineers would be 'much happier' living in their home country with these wages.
'An engineer who graduates with distinction and goes to work in Munich will cost the company about €6,500 per month between salary and social contributions,' Mezzour stated.
He added that the same engineer could be employed in Morocco for between €1,000 and €1,500 for identical work, expressing his belief that 'the engineer will live much happier in his country with a salary that allows him to own an apartment and start a family life.'
Human outsourcing
Economic analysts told Morocco World News (MWN) that this wage gap raises fundamental questions about the country's development strategy and its role in global value chains.
Rather than developing technology or products, Morocco appears to be positioning itself as an exporter of affordable brainpower for multinational companies. While official discourse frames this as 'providing solutions,' critics view it as a form of human outsourcing.
The minister also acknowledged that Morocco's economy cannot currently absorb all its trained talent, pushing many skilled Moroccans to seek opportunities abroad.
Instead of rethinking the development model to retain these professionals, the government has doubled the number of medical graduates and increased engineering graduates tenfold to produce more exportable talent.
'We used to train 1,500 doctors annually, but 800 of them were recruited each year, especially to Germany,' Mezzour said, continuing that German universities would recruit entire classes of engineers before graduation.
Mezzour described these young graduates as 'hungry' to integrate into life and create a future for themselves, insisting they represent 'a tremendous force for those who deal with them respectfully and within a balanced partnership framework that ensures contribution to their valorization within Morocco.' Beyond 'cheaper is better' for sustainable growth
Mohammed Afzaz, a Qatar-based Moroccan economic analyst, told MWN that betting solely on the wage gap to attract foreign investment may backfire for the kingdom in the long run.
'Morocco's bet on the 'cheaper is better' principle to attract foreign investments may not be the most suitable wager for the kingdom amid strong competition from other Arab and Asian countries that adopt the same strategy,' Afzaz explained.
He cited Vietnam and Bangladesh as countries that tried this model before concluding they needed to support innovation rather than simply being open territory for mobile capital.
For Morocco to retain its high-caliber talent, Afzaz suggested a five-point strategy: achieving fair wages with growth guarantees, enabling continuous training opportunities at home and abroad, investing heavily in research and development, supporting innovation and entrepreneurship rather than turning engineers into 'stagnant employees and numbers among other numbers,' and providing social and health protection for professionals and their families.
'Morocco in this critical period of its rising development project needs its competencies to play a central role in leading the desired economic takeoff,' Afzaz stressed, though he acknowledged that preventing talent migration entirely would be impossible given global market demands.
Afzaz pointed out that the global context presents unique challenges, adding: 'Trump's ongoing trade wars' and persistently 'high inflation levels no longer exempt any country in the world.' He warned that 'if wages do not move to keep pace with rising prices, purchasing power gradually declines.'
Cultural factors offset wage disparities
Contributing to the discussion, economist and Director of the Government Work Observatory Mohammed Jadri spoke to MWN about several structural factors he believes help explain why the wage gap hasn't triggered a full-blown talent exodus.
'The lifestyle and cultural attachment: A significant portion of Moroccan engineers prioritize family stability, cultural proximity, and quality of life that the country can offer, especially in major cities like Casablanca, Rabat, or Tangier,' Jadri said.
He pointed to growing local opportunities thanks to industrial strategies launched since 2014, the relatively lower cost of living, and government policies encouraging training and professional integration as factors helping Morocco maintain its talent pool.
Jadri specifically mentioned the Industrial Acceleration Plan launched in 2014 and continued by the current ministry, which has created interesting prospects in several sectors, including 'automotive, aeronautics, electronics, and offshoring' that offer career advancement and specialization opportunities.
He also underlined the role of government training initiatives through OFPPT (Office of Professional Training and Work Promotion), the Cités des Métiers et des Compétences (CMC), and ANAPEC employment contracts in structuring a skills pipeline aligned with industrial needs, which strengthens local employability.
Jadri characterized the wage gap not as social dumping but as an acknowledged comparative advantage in Morocco's strategy. 'Morocco positions itself as an intermediate alternative between low-cost countries like Bangladesh or Ethiopia and European countries. For multinationals, it's an opportunity to optimize costs without compromising quality,' he stated.
'Morocco does not practice a race to the bottom,' Jadri insisted. 'The minimum wage (SMIG) is regularly revalued, collective agreements are developing in certain industrial zones, and mechanisms for social dialogue exist.'
Looking forward, Jadri argued this cost differential is only sustainable if accompanied by structural transformation of Morocco's industrial fabric. 'The simple cost advantage will eventually erode with rising social and wage demands,' he went on to say.
'It is therefore necessary to invest in continuing education and technical and scientific fields, promote R&D partnerships between industrialists and Moroccan research centers, strengthen the ecosystem of industrial and deep tech startups, and integrate global value chains at a higher level,' he concluded.
International integration will drive wage growth
Offering a critical perspective, economist and researcher at Mohammed V University in Rabat, Zakaria Firano explained to MWN that Morocco's current level of human capital remains average by global standards, leaving substantial room for improvement.
'Morocco is situated in terms of human capital in the world average, according to the World Bank index, at a level of 0.5 to 0.55, which means that the qualification of Moroccan human capital remains average compared to different countries of the world,' Firano observed. This moderate productivity level partly explains the salary gap with European counterparts.
Firano provided concrete examples to illustrate this point: 'We are in the industrial sector always at a level of contribution to added value to gross domestic products around 28% to 29%.'
For him, 'this means that any improvement in human capital in the medium and long term will allow the industrial sector to reach the objective we want, which is to reach more than 40% of added value, not only in terms of quantity but also in terms of quality and also in terms of quality competitiveness internationally.'
Firano linked the salary differential to productivity gaps, remarking that 'in European and developed countries, [highly qualified human capital] remains a bit more important than what we find here in Morocco.' To reduce this gap, he argued Morocco must raise both the level of human capital and its contribution to added value, especially in industrial and service sectors.
Comparing minimum wages across countries, Firano stated: 'If we take a minimum wage, we will simply compare it with Spain, it's around 300 euros in Morocco compared to more than 1,084 in Spain,' adding that the minimum found in countries with relatively low minimum wages in Europe, 'like Croatia, Poland, etc., is double, triple what we find, triple the minimum wage in Morocco.'
On the sustainability question, Firano gave a firm 'probably not' to whether the wage differential can persist long-term. 'We cannot have a certain sustainability through salary attractiveness if we are in an economy that is beginning to integrate internationally,' he stated. With Morocco's international integration level around 65% and continuing to open up, prices will increasingly align with international levels.
'The obligation to converge with new international professions in technology, robotics, and artificial intelligence will require increased qualification and human capital,' Firano added. This human capital improvement will generate higher added value and productivity, inevitably leading to higher wages.
Young talents seek fulfillment beyond salary
Weighing in on the debate, economist and academic Mohammed Chiguer shared with MWN that salary isn't the decisive factor behind brain drain decisions, and put it bluntly: 'Moroccans flee their country, but French people also flee their countries.'
'I believe that the minister's statement is simply to support the movement observed for some time, the return of Moroccan talents who even resided in France,' Chiguer said. He pointed to many Moroccan professionals born and educated in France who have chosen to settle in Morocco, with Casablanca serving as a vital platform for those wishing to work with Africa.
Chiguer placed the situation in its international context, particularly considering Europe's employment challenges. 'France is experiencing problems in this area. In fact, the unemployment rate for graduates is beginning to worry them,' he asserted.
According to Chiguer, young talents seek self-fulfillment through multiple channels. 'The main reason for brain drain or the return of brains is that young people seek to realize themselves not only through a more or less high salary but also through other conditions,' he clarified, referencing Morocco's efforts to establish itself as a true African hub.
'It's a question that really needs to be placed in its context and take into consideration the international situation, take into consideration the situation in Europe in particular and in France more particularly,' Chiguer concluded.
Read also: Morocco's Auto Labor Cost: Just $106 Per Vehicle Tags: Moroccan EngineersRyad Mezzourwages