In textiles, an employee costs four times more in Morocco than in Egypt
The hourly labor cost in the manufacturing industry is approximately 2.8 dollars in Morocco, compared with only 0.7 dollars in Egypt. Despite this one-to-four gap, the World Bank considers that Moroccan textiles retain several advantages over their competitors.
The comparison appears in the World Bank’s Country Private Sector Diagnostic 2026. Based on estimates for 2025, the hourly manufacturing cost is estimated at 0.7 dollars in Egypt, 1.5 dollars in Tunisia and 2.8 dollars in Morocco. It then rises to 4.8 dollars in Turkey and 6.3 dollars in Portugal.
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These amounts correspond to the hourly labor cost for the company, not to the net salary received by the employee.
Morocco remains competitive despite the gap
The World Bank itself points out that Moroccan costs are higher than those in Egypt and Tunisia. Nevertheless, it considers that proximity to Europe, speed of delivery and production flexibility allow the kingdom to remain an attractive base for international groups.
The textile and clothing industry employed approximately 234 000 people in Morocco in 2024, 64% of them women, and generated 4.6 billion dollars in exports, representing approximately 10% of Moroccan merchandise exports. Morocco was then the eighth-largest clothing supplier to the European Union.
The sector nevertheless remains largely concentrated on low-value-added garment-making operations, which account for 77% of exports, while more than 80% of the yarns and fabrics used are imported.
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The World Bank estimates that reforms enabling Morocco to move up the value chain could attract up to 1.9 billion dollars in private investment and create approximately 30 800 direct and indirect jobs in the medium term.
