Rising youth unemployment threatens economy – Analyst
Economic analyst Emmanuel Boateng has warned that Ghana’s rising youth unemployment is undermining the nation’s economic progress through reduced tax revenues, falling productivity and heavier financial pressure on working populations.
His warning follows a World Bank report indicating that 1.2 billion young people in developing countries will reach working age over the next decade, with only half expected to find sustainable jobs.
Mr Boateng, speaking on Business Breakfast on Zed 101.9 FM, noted that current youth unemployment causes a loss of tax inflow, which would otherwise boost domestic revenue mobilisation. This remains a critical priority given Ghana’s current fiscal shortfalls.
He indicated that productivity losses are equally sobering, referencing a World Bank estimate that reducing youth unemployment could boost Africa’s GDP by 10 to 20 per cent.
“So, the point I am making is that by employing those 750,000 young people, Ghana could increase GDP by 10 to 20 per cent, which is about 40 to 80 billion Ghanaian cedis annually. There is much to be done. For Ghana, this translates to idle economic output worth between GHC 40 billion and GHC 80 billion annually,” Mr Boateng stated.
The economic analyst further noted that the social consequences of unemployment are grave, and that the burden on the working population intensifies, straining household finances and reducing national savings and investment.
Moreover, Mr Boateng stated that high youth unemployment poses a threat to political stability, as economic frustration among jobless youth increases the risks of political conflict and unrest.
He also noted that in Ghana, the Upper East Region’s youth unemployment rate of 39 per cent highlights the vulnerability of certain areas to social instability and even extremism, according to a recent United Nations development report.
Mr Boateng added that without urgent action, frustration among unemployed youth could escalate into broader societal problems fuelled by perceived inequality and exclusion.
