Ghana’s economic gains not creating enough decent jobs – World Bank warns
By Rebecca Okine
An economist at the World Bank Country Office, Kwabena Gyan Kwakye, has cautioned that Ghana’s strong economic growth over the past two decades has failed to translate into sufficient decent jobs for its citizens.
His remarks follow the launch of the World Bank’s 9th Economic Update for Ghana, titled ‘Addressing Labour Market Challenges and Opportunities in Ghana’s Economic Landscape.’
The report highlights structural weaknesses in Ghana’s job market, including weak demand for labour in productive sectors, overdependence on agriculture, and the growing pressure of nearly half a million young people entering the labour market every year.
Speaking on the Business Breakfast on Zed yesterday, Mr Kwakye explained that although Ghana’s economy has expanded faster than many other countries in the past two decades, much of that growth has been driven by oil production and high export prices.
“Ghana’s economy has grown faster than many other countries over the past two decades. However, the growth that we’ve had has not led to enough good jobs for most people. Most workers are still in low-paying, insecure jobs, especially outside of farming,” he said.
The World Bank economist stressed that while productive sectors such as mining and finance generate significant value, they employ only a small portion of the labour force. As a result, many workers leaving agriculture end up in informal, self-employed activities, which often provide little income and no job security.
“Apart from farming, which you could decide to be in for the rest of your life depending on how much you earn, most people are in insecure jobs. Sectors like mining and finance are very productive, but they employ only a small number of people. So many leaving agriculture end up in the informal self-employed sector, which doesn’t pay well or offer stability,” Mr Kwakye explained.
The report also draws attention to Ghana’s stalled structural transformation.
According to Mr Kwakye, countries that have successfully transitioned from low-income to high-income status typically move from agriculture into industry before developing a more highly productive services sector. In Ghana’s case, however, this middle phase has been weak.
“It looks like in Ghana, once productivity starts improving, we are not able to get that particular middle sector to absorb semi-trained workers moving out of agriculture,” he noted.
The World Bank’s Economic Update aims to “engender public discourse and put across pertinent issues for policymakers to pick up,” Mr Kwakye said, adding that reforms in industrialisation, skills development, and private sector growth will be critical to reversing the trend.
With Ghana’s youth population continuing to expand, the report warns that failure to create quality jobs could undermine the country’s economic progress.
For Mr Kwakye, the way forward lies in targeted policies that strengthen industries, expand training opportunities, and build pathways for young people into decent employment.
