Job Creation Lags Behind Growing Labour Force – GSS
Despite marginal improvements in employment figures, job creation in Ghana remains insufficient to absorb the growing number of people entering the labour market, particularly young people, the Ghana Statistical Service (GSS) has reported.
According to the GSS, the national unemployment rate declined slightly from 13.1 per cent in the fourth quarter of 2024 to 12.8 per cent in the first quarter of 2025 and further eased to 12.6 per cent in the second quarter of the year. However, the trend reversed in the third quarter of 2025, with unemployment rising again to 13 per cent.
Releasing the Labour Force Statistics for the first three quarters of 2025 in Accra on Thursday, December 18, the Government Statistician, Dr Alhassan Iddrisu, said the data pointed to a structural challenge in the labour market rather than a short-term fluctuation.
“The key message here is that jobs are increasing, but the unemployment rate is not falling in a sustained way. New job creation is still not fast enough to absorb new entrants, especially young people and urban job seekers,” he said.
The report revealed that unemployment among young people remains a major concern, consistently exceeding the national average. The highest unemployment rate, 32.4 per cent, was recorded among persons aged 15 to 24.
In addition, the GSS noted that 21.5 per cent of people within the same age group were not in employment, education or training (NEET), highlighting a growing segment of young people disengaged from both the labour market and the education system.
“This represents a significant loss of productive potential and underscores the urgency of targeted youth employment and skills interventions. Urban unemployment remained higher than rural unemployment, and females continued to experience higher unemployment rates than males,” Dr Iddrisu added.
Beyond headline unemployment figures, the report also raised concerns about the quality of jobs available, particularly in vulnerable sectors. Urban areas continued to record higher unemployment levels compared to rural communities, while women were disproportionately affected across most labour market indicators.
Policy Priorities
Based on the findings, the GSS outlined four major policy priorities for addressing Ghana’s labour market challenges.
First, it emphasised the urgent need to tackle youth unemployment through expanded apprenticeship programmes, improved school-to-work transition systems, digital and technical skills training, and reintegration pathways for NEET populations.
Second, the Service called for improvements in job quality by reducing vulnerable employment. This, it said, would require increased formalisation, enterprise development, better access to finance, and strengthened labour protections, particularly within agriculture and rural economies.
Third, the GSS stressed the importance of aligning skills development with labour market demand. This would require closer coordination between government, training institutions and employers, as well as continuous monitoring of skills utilisation.
Fourth, it recommended the responsible support of shift-based and flexible work arrangements, with clear standards to protect workers’ safety, health and income security, especially as Ghana advances its 24-Hour Economy agenda.
The GSS further encouraged households and individuals to prioritise skills development and lifelong learning, while urging businesses to invest more deliberately in staff training, internships and workforce development initiatives to strengthen the country’s human capital base.
