News Guide Africa

Tag: unemployment in Ghana

  • Private sector must take lead role in job creation – Ato Forson

    Private sector must take lead role in job creation – Ato Forson

    Minister of Finance, Dr. Cassiel Ato Forson, has urged the private sector to absorb the majority of Ghana’s labour force as the government pursues a more strategic and sustainable approach to public sector recruitment.

     

    Dr Forson, speaking on a radio interview, explained that the government cannot continue to carry the weight of mass employment, particularly when infrastructure and economic capacity do not match the increasing demand for jobs.

     

    He noted that while the state will continue to employ essential workers such as doctors, nurses and teachers, those decisions must be tied to the availability of facilities. “If you employ doctors, you must have hospitals for them to work in. The same applies to teachers, you need classrooms,” he said, stressing the need for a careful balance between hiring and the provision of public goods.

     

    Dr. Forson said the government is not halting recruitment but is shifting to a more deliberate model aimed at protecting the economy.

     

    He explained that the 2026 Budget has directed allocations to sectors capable of creating large-scale employment through private investment and enterprise growth. According to him, this approach aligns with global trends where governments employ only between 15 and 20% of the workforce.

     

    “Government cannot say they won’t employ, but we have to employ strategically and sustainably. In most countries, the government does just 15 to 20% of the employment, and the private sector does the rest.

     

    “The private sector is the most sustainable, not the government sector, so it should take the bulk of the employment force,” Dr Forson said.

  • YEA expands job modules to tackle youth unemployment nationwide – YEA PRO Jawando

    YEA expands job modules to tackle youth unemployment nationwide – YEA PRO Jawando

    The Youth Employment Agency (YEA) is intensifying efforts to tackle Ghana’s growing youth unemployment crisis, with new programmes and partnerships aimed at creating sustainable job opportunities across sectors. This was disclosed by the Public Relations Officer of YEA, Abdul Wahab Jawondo.

    According to the Ghana Statistical Service, the country’s overall unemployment rate stands at 13.1% as of 2024, with youth unemployment covering ages 15 to 35 hitting a staggering 22.5%.

    Each year, approximately 100,000 graduates emerge from tertiary institutions, yet only about 10% are absorbed into the public sector.

    Mr. Jawondo noted that experts cite several contributing factors to the unemployment situation, including population growth, economic constraints, and a mismatch between skills and market demand. A key concern, he explained, is the orientation of young people, many of whom “have too much desire for public sector jobs,” coupled with “inadequate capacity for creativity” and “skills mismatch.”

    To address these challenges, he stressed the need for a “re-orientation of youth” and a renewed focus on “improving skills and education.”

    The Youth Employment Agency, operating under the Ministry of Youth Development and Empowerment, is mandated “to create and coordinate employment opportunities for young people.” Established by the Youth Employment Agency Act, 2015 (Act 887), YEA replaced the former Ghana Youth Employment and Entrepreneurial Development Agency (GYEEDA).

    According to Mr. Jawondo, YEA works closely with private companies, NGOs, and development partners to deliver training, job placement, and entrepreneurship support. “YEA partners with private companies, NGOs and development agencies to provide training, job placement and entrepreneurship opportunities,” he confirmed.

    Eligible beneficiaries, he explained, include “Ghanaian youth between the ages of 15 and 35, including graduates, school leavers, women, persons with disabilities (PWDs), and vulnerable groups.”

    Sectors covered

    YEA’s interventions span multiple sectors such as education, health, security, environment, and corporate/private sector support. Programmes include:

    Education: Teaching assistants, school support

    Health: Community health workers, community first responders

    Security: Community protection assistants, fire assistants, prison assistants

    Environment: Sanitation, coastal cleanup, eco-friendly jobs

    Corporate and Private Sector Support: Job centre, opportunities for working abroad, artisan directory, corporate internships

    Achievements so far

    The Agency, through Mr. Jawondo, says it has already created tens of thousands of opportunities:

    12,000 youth have been engaged as Community Policing Assistants with the Ghana Police Service

    5,000 as Fire Assistants with the Ghana National Fire Service

    5,000 ongoing placements as Prison Office Assistants with the Ghana Prison Service

    6,000 ongoing as Community First Respondents with the Ghana Ambulance Service

    3,000 Arabic instructors currently engaged

    5,000 youth engaged through the Job Centre

    5,000 under the Work Abroad programme

    2,000 youth being registered for sustainable charcoal production under the YEA Waste to Wealth Project, in partnership with Zacoal Company Limited. The initiative promotes the use of agricultural waste such as coconut husk to produce clean, eco-friendly charcoal, reducing pollution from traditional methods.

    500 youth engaged as National Insurance Enforcers with the National Insurance Commission

    Mr. Jawondo also revealed that YEA will soon roll out additional modules including Community Health Workers, School Support Programme, and Community Education Teaching Assistants.

    Interested youth, he added, can apply through the official YEA website or visit any regional or district YEA office for assistance.

  • Mahama to prioritize sustainable job creation

    John Mahama giving a speech

     

    Adnan Adams Mohammed

    The Flagbearer of the National Democratic Congress (NDC), John Dramani Mahama for election 2024 has reecho the surge in the unemployment rate in the country.

    The situation, he lamented was alarming and ought to be addressed. But, he wants, the menace gradually transiting into a catastrophe, to be addressed by providing sustainable employment opportunities.

    Assuring that, the next NDC government will prioritize the implementation of policies aimed at fostering genuine and sustainable job creation.

    According to him, the current administration has failed in addressing the challenge while downplaying current initiatives such as; NABCo, which he believe failed to provide a lasting solution to unemployment.

    John Dramani Mahama said, “To have that 14.7% unemployment rate, tertiary-trained graduates are a bigger chunk than those below secondary and basic education, and so it is something that we need to look at.

    “And so the next government’s major focus must be putting in policies that will create jobs, jobs, and jobs. And these should not be artificial jobs like we normally do; you do NABCo and you know that you have no sustainable place to put them after the three years when they graduate from NABCo, and yet, it is just done to win political points.

    “[Government claims it has] given 100,000 young people jobs, and now when they finish the NABCo and you owe them nine months’ allowance arrears, and the government is refusing to pay them.

    “And so we must aim more at sustainable jobs. And we can’t get those sustainable jobs in many places, including the agricultural value chain,” he added.

    Economy Times editorial board buy into the idea of providing sustainable decent jobs to the teeming youth and unemployed graduates.

  • Unemployment situation to worsen amidst implementation of new taxes

    Adnan Adams Mohammed

     

    Business owners in the country have expressed a worsening situation of unemployment in coming months as their cost of doing business is set to increase since the government has remained heedless to their plea.

     

    Members of trade unions; Ghana Union of Traders Association (GUTA), Association of Ghana Industries (AGI) and Ghana Chamber of Commerce and Industry (GCCI) have in the past weeks used all available lobbying and advocacy processes to catch government’s attention to reconsider the full scale implementation of the three new tax policies contained in the tax amended laws passed and assented by president recently since they have high tendency to collapse and stifle growth of businesses thereby resulting in layoffs.

     

    The business operators fear that, the situation will also result in increase in prices of goods and services in the coming days which will erode the gains made so far. GUTA has explained that, it members (employers and shop owners) cannot absorb the taxes and would be forced to push it to the end consumer.

     

    ”Business people must protect their interests by increasing prices and cutting down on costs because you cannot make young people work without pay,” Deputy General Secretary of GUTA, Mr Richard Amamoo, lamented in an interview last week. ”When you come to the trading sector of the economy, shop owners have asked many of their sales boys and girls to go home to enable them to maximise cost.”

     

    He said shop owners who had 20 salespeople have laid off 10 to cut costs, noting that, in the wake of the high cost of doing business, it is increasingly becoming difficult for traders to stay afloat.

     

    Already, the Ghana Statistical Service has revealed in its Quarterly Labour Statistics Report that, about 1.76 million persons were unemployed in the third quarter of 2022. Within the three quarters, about 157,000 persons experienced an unemployment spell that is they were unemployed in all the quarters.

     

    The report further said close to 7.5 million persons remained employed throughout the three quarters out of the about 11 million persons employed in each quarter.

     

    Despite this gloomy picture of the unemployment situation in the country, the Ghana Revenue Authority (GRA) announced the kickstart of implementation of the three new taxes starting May 1, 2023.

     

    According to the government, the new taxes: Excise Amendment Act, 2023; Income Tax Amendment Act, 2023; and the Growth and Sustainability Levy Act, 2023, will raise revenue and meet the conditions for a US$3 billion International Monetary Fund (IMF) programme.

     

    The new tax policies are expected to rake in GH¢4 billion for the country annually.

     

    Meanwhile, the Ghana National Chamber of Commerce and Industry is warning of the collapse of many businesses in Ghana, following the implementation of the three new tax laws.

     

    According to the Chief Executive of the Chamber, Mark Badu-Aboagye, is dangerous and would force many businesses to relocate to other countries.

     

    “We are not happy, we are highly disappointed that this bill has been assented and has become a law. Actually, we sent a petition to the president of Ghana to at least give us a hearing, and also inform him about the difficulties we are going through and even forward some recommendations on how they can still get the revenue and also bring some relief to businesses”.

     

    “But unfortunately the president [Akufo-Addo] has ignored all the concerns that we raised; so definitely, we are not happy but this does not take away the fact that these taxes are inimical and counterproductive and is not going to help businesses”, he lamented.

     

    Mr. Badu-Aboagye pointed out that businesses are already overwhelmed with so many taxes and therefore any additional taxes will be inimical to their growth.

     

    “We’ve made it clear that already, businesses are suffering. The cost of doing business is high, we have a lot of taxes that businesses are already paying, so any additional taxes to the existing tax is not going to be in the interest of businesses”.

     

    He continued that research conducted by his outfit revealed that though business in Ghana are profit and growth oriented, too many taxes and rising interest rates have pushed them into loss positions.

     

    “In fact, the research that we conducted not long ago indicated that businesses in Ghana are profit and growth oriented, but when these taxes and interest rates are factored in, then most of them begin to run at a loss. So with these taxes, businesses are going to collapse and others have started relocating…… those who would want to take advantage of better deserved conditions are relocating and businesses

     

    Also, the Chamber of Agribusiness Ghana is alarmed with the wholesome implementation of the taxes, saying, they are nuisance taxes on agribusinesses, agripreneurs and consumers in the agribusiness value chain.

     

    Sharing its position on all the policies and the likely outcome of the implementation, the Chamber posited that, on the Growth and Sustainability Levy, the Chamber said “it will be challenging to collect this levy from mining and petroleum companies that have stability clauses in their agreements”.

     

    The clause states that no change in fiscal legislation shall affect them until after their stability period (which can be anywhere from 15 to 25 years, depending on the agreement).

     

    The chamber explained that those without such provisions will likely try to internalise them, which will raise their production costs and lower their profits, ultimately increasing their taxable corporate income”.

     

    With regards to the Income Tax (Amendment) Act, the chamber argued that “it’s fascinating to see that these people pay taxes at the same rate (35%) as mining and petroleum firms, which is far higher than the rates paid by companies in the hospitality industry (25%), the banking sector (22%), leasing and agricultural sectors (20%).

     

    It added that “if these wealthy people want to avoid paying taxes at a rate of 35%, why not form corporations and have their dividends subject to a final tax rate of 8%?”

     

    Touching on the Excise Duty (Amendment) Act, it refuted the assertions that the act will help shore up revenue.

     

    “Taxation is not all about raising revenue and so this act should not be seen exclusively as a revenue raising measure but a measure to deal with importation and consumption of harmful goods. In as much as the increased raises will bring-in some revenue that cannot be the main purpose”.

     

    The chamber in the meantime urged its members to diversify their raw material sourcing, making use of alternatives available locally.

     

    “Leverage the value-based pricing method to cost your products and services consciously cut the use of utility and fuel that is electricity and water. Ensure your factory or agribusiness limits wastage. Start making investments in other forms of electricity generation like solar. Leverage suitable technologies to minimise labour cost and extra expenditure”.

  • BoG blames cedi depreciation on fiscal operations

    BoG blames cedi depreciation on fiscal operations

    By Elorm Desewu

    The Bank of Ghana, (BoG) has blamed the recent sharp depreciation of the cedi on fiscal operations of the government.

    According to the BoG, the Ghana cedi came under pressure in September and October on fiscal concerns. Pressure to the currency came from energy and corporate demand. Also, the strength of the US dollar weighed on the Ghana cedi.

    However, this pressure has been partly moderated by the central banks special forex auction for Bulk Distribution Companies. Furthermore, the currency is being supported with inflows from the cocoa syndicated loan, mining, remittances and forex purchases from the mining companies.

    However, as the dollar continues to strengthen due to policy rate hikes and U.S safe-haven status, the cedi may continue to experience some volatility in the near term. Also, Energy related and corporate demand may persist, but successful negotiations of the US$3 billion IMF package may offset some of the pressures.

    In the interbank market, the cedi depreciated by 53.83 percent, 45.50 percent and 46.84 percent against the dollar, pound and the euro respectively on a year-to-date basis. This was against an appreciation of 3.54 percent against the euro and a depreciation of 2.38 percent and 2.57 percent against the dollar and pound respectively during the same period in 2021.

    Historically, the cedi was weaker in 2022 on a year-to-date and monthly basis compared to the same period from 2017-2021. Also, the cedi was more volatile during the first 226 transaction days in 2022 compared to the same period from 2017-2021.

    In reference to the major trade partners’ currency movements, the Ghana cedi depreciated by 36.6 percent in nominal trade weighted terms and 35.6 percent on forex transaction weighted terms in October 2022.

    This compares with 0.28 percent and 0.27 percent depreciation in nominal trade weighted terms and nominal foreign exchange transaction weighted terms over the same period in 2021.

    In real bilateral terms, the Ghana cedi depreciated by 32.4 percent, 34.9 percent and 38.1 percent against the US dollar, euro and the pound sterling during October 2022. Comparatively, for the same month in 2021, the Ghana cedi’s real exchange rate depreciated by 0.6 percent, 0.4 percent and 2.3 percent against the dollar, the euro and the pound sterling respectively, over the same period in 2021.

    The Ghana cedi depreciated by 34.8 percent and 32.7 percent in real trade weighted terms and real forex transaction weighted terms in October 2022. These compare with a depreciation of 0.6 percent and 0.6 percent in real trade weighted terms and real FX transaction weighted terms respectively for the same period in 2021.

  • Job unavailability on the rise

    Job unavailability on the rise

    By Elorm Desewu

    Job availability in the country has declined significantly by 8.4 percent for the first two months of 2022. The number of jobs advertised in selected print and online media, which partially gauges labour demand in the economy, decreased in February 2022 relative to the corresponding period a year ago.

    Cumulatively, the number of jobs advertised in the first two months of 2022 decreased by 4.4 percent to 5,370 from 5,618 recorded in the corresponding period of 2021. The year-on-year decline in the number of jobs advertised reflected some of the difficulties faced by businesses as a result of the coronavirus pandemic.

    In total, 2,746 job adverts were recorded as compared with 2,999 for the same period in 2021, indicating a decline of 8.4 percent year-on-year. On a month-on-month basis, the number of job vacancies in February 2022, however, increased by 4.6 percent.

    Total number of private sector SSNIT contributors, which partially gauges employment conditions, improved to 828,061 up by 2.4% year-on-year in January 2022 compared with 808,301 for the same period in 2021. On a month-on-month basis, total number of private sector SSNIT contributors decreased by 4.1 percent from the 863,094 individuals recorded in December 2021.

    The Bank’s updated Composite Index of Economic Activity (CIEA) recorded an annual growth of 4.2 percent in January 2022, compared with 13.9 percent recorded in the corresponding period of 2021.

    The consumer and business confidence surveys conducted in February 2022 revealed a softening of sentiments with business confidence declining by a greater extent. The Consumer Confidence Index eased from 88.1 in December 2021 to 87.4 in February 2022 on account of the persistent increases in fuel prices, increases in transportation fares and rising inflation.

    Businesses were concerned about the impact of these on macroeconomic conditions as well as on their short-term targets and profitability for 2022. Consequently, the Business Confidence Index dipped from 98.4 in December 2021 to 88.8 in February 2022.

    Real sector activity is expected to continue to recover, although still below potential. In the outlook, activity is expected to improve in the medium-term on the back of positive real sector expectations and rising foreign demand. However, tighter monetary conditions and the on-going fiscal consolidation are likely to moderate the pace of the recovery in the forecast horizon.