Ghana’s labour market is burdened by deep structural weaknesses, warns US-based economist Dr. Dennis Nsafoah. He highlights a critical lack of reliable data as a major hurdle for policymakers. This deficiency prevents the creation of effective employment policies.
Dr. Nsafoah, an Assistant Professor of Economics at Niagara University, stated that policymakers often lack a complete understanding of key labour market dynamics. This includes employment figures, underemployment rates, wages, and productivity levels. Without this information, designing targeted solutions becomes extremely difficult and may even be ineffective.
Ghana’s economic discussions have historically focused more on inflation and GDP growth. This often overlooked the quality and structure of employment. For most Ghanaian families, the real measure of economic success is job security and decent wages, not just abstract economic indicators. The National Development Planning Commission (NDPC), however, is now placing the labour market at the forefront of development planning with its "jobs-first" agenda, which Dr. Nsafoah finds commendable and timely.
A significant portion of Ghana’s workforce operates in the informal sector. These jobs typically offer low productivity and unstable incomes. Workers in this sector often lack access to social protection or benefits. Many young graduates face difficulties finding productive employment after completing their studies. Underemployment is also a widespread problem, even for those considered employed. This situation creates a gap between reported economic growth and actual improvements in people’s lives and incomes.
The economy might show good GDP growth figures. However, many households continue to face limited job opportunities and stagnant earnings. This disconnect can lead to several negative outcomes. These include lower household income growth, reduced consumer spending, and widening income inequality. It can also erode the confidence of young people and increase the pressure for international migration. The "jobs-first" policy approach holds the potential to foster greater economic inclusion and ensure long-term growth sustainability.
Dr. Nsafoah believes a well-designed jobs-first policy could benefit Ghana significantly. Firstly, increased employment boosts household incomes and spending power. This, in turn, supports domestic demand and encourages private sector expansion. Secondly, policies focused on skills development, industrialisation, and productivity enhancements can improve the workforce’s overall quality and efficiency. Thirdly, a stronger labour market widens the tax base. This improves the government’s financial stability and reduces reliance on support programs. Finally, better job outcomes can contribute to social stability and economic resilience, particularly among the youth.