Tackling Long-Term Unemployment Challenges in Ghana

Ghana Statistical Service (GSS) has published Ghana 2022 Annual Household Income and Expenditure Survey (AHIES) Third Quarter Labour Statistics. According to the report, there were approximately 1.76 million unemployed individuals in the third quarter of 2022. Two out of every three unemployed members of this population were female. Approximately 157,000 people experienced unemployment in each of the three quarters, or were unemployed in each quarter. Out of the roughly 11 million people who were employed in each quarter, approximately 7.5 million remained employed throughout the three quarters. This shows that over the course of the three quarters, approximately 3.5 million people entered and exited the labour force, highlighting their vulnerability.

According to Felic Kwame Quainoo, Ghana’s current unemployment situation can be compared to a patient on life support who requires urgent and critical medical attention, a situation which, if left unchecked, could be disastrous in the near future unless immediate steps are taken to reverse the situation. It is alarming, a “ticking time bomb,” and a national security concern.

The magnitude of the adolescent employment problem in Ghana necessitates a comprehensive, deliberate, and consistent response.

Priorities for promoting youth employment in Ghana include:

  • Aligning formal education programs and skills development initiatives with a labor market that is rapidly changing and requires new and diverse skill sets, and adapting to new technology.
  • Collaborate with the private sector, such as by involving employers in the design of training programs and introducing certifications for occupational standards, to adapt to the future of work.
  • Integrate pre-employment support activities into the current education system in order to better prepare young people for the transition to the workforce.
  • Promote social inclusion initiatives to improve access to credit and management training for women entrepreneurs, as well as to improve infrastructure and equipment for people with disabilities, ensuring that no one is left behind.
  • In addition, we emphasize the need for increased collaboration between various stakeholders in order to reduce duplication and fragmentation of adolescent employment programming.

To equip the large number of graduates who enter the labor market each year with employable skills, Ghana’s educational system must be reformed to meet labour market demands. Providing coordinated and comprehensive preemployment support services, such as internships, job search and help, coaching and mentoring training, as well as shaping digital skills, soft skills, and work ethic, is essential for preparing young people for the rapidly evolving global labor market. The aforementioned list of support services must be effectively incorporated into the Ghanaian education system in order to prepare undergraduates for a seamless transition into the workforce.

Finally, we suggest establishing public-private partnerships by providing private sector partners with incentives to train their employees, involving employers in the design of training curricula, introducing certifications for occupational standards, and encouraging private companies to engage young people. Targeted initiatives, such as enhancing female entrepreneurs’ access to credit and management training, as well as enhancing the infrastructure and instruments available to young people with disabilities, can promote social inclusion. These efforts will be essential to increase youth participation in the labor market and ensure that no one is left behind.

Taking into account the options outlined in the report, future policy planning for youth employment should not only address youth unemployment but also construct the human capital required to sustain Ghana’s economy.

References

Dadzie, C. E.; Mawuko, F., & Suleiman, N. (2020). Youth Employment Programs in Ghana: Options for Effective Policy Making and Implementation. International Development in Focus;.Washington, DC: World Bank. http://hdl.handle.net/10986/34349.

Fosu, K.Q. (September 29, 2020). Addressing Youth Unemployment in Ghana Needs Urgent Action, World Bank Report: Press Release. No. 2021/045/AFR.

Ghana Statistical Service (March, 2023). Ghana Annual Household Income and Expenditure Survey. Quarter 3 of 2022 Labour Statistics Report.

Leave a comment