Economic growth not matching job quality in Ghana

The nation’s economy is expanding, but many of its workers are “running on a treadmill,” shifting from one job to another without any real improvement in income, security or living standards.

That is the central message of the World Bank’s latest Ghana Economic Update. The report warns that while growth has created new opportunities, it has not generated enough quality jobs to keep pace with the country’s demographic changes.

Between 2012 and 2023, Ghana added 720,000 jobs in industry and services but lost 470,000 in agriculture. Urban areas absorbed 2.4 million more working-age people over the decade, yet average real wages fell by three percent.

Job creation has not kept up with the country’s population growth. Youth participation in the workforce is declining, and an estimated one million young Ghanaians now live abroad in search of better prospects.

Weak Growth in Middle-Skilled Sectors

Sectors typically seen as engines of upward mobility, including manufacturing, construction and domestic services, remain among the slowest-growing in terms of employment. This has limited opportunities for workers to transition into better-paying, more secure positions.

The World Bank also highlighted a troubling shift in the role of education. While education remains a powerful tool for economic mobility, its ability to lift incomes is weakening as the supply of graduates increasingly outstrips the availability of high-quality jobs.

Persistent Gender Gaps

The report underscored the enduring inequalities faced by women in Ghana’s labour market. Women are overrepresented in low-productivity roles and face significant pay gaps and barriers to advancement, further limiting their economic potential.

Urgent Call for Reform

With the working-age population projected to grow by 4.8 million to 25.3 million over the next decade, the World Bank stressed the urgent need for bold reforms. It called for policies that attract private investment, raise productivity and build stronger pathways from education to employment.

Without decisive action, the report warns, many Ghanaians will continue “working hard but going nowhere” as growth fails to translate into widespread improvements in living standards.