The Ghana Statistical Service (GSS) reports that employment increased in Ghana in 2024, primarily in the informal sector, which it describes as “insecure.” This expansion is indicative of a decrease in the country’s unemployment rate.
With 14.2 million people aged 15 and over in the workforce, the national unemployment rate decreased from a peak of 14.9% in the first quarter of 2023 to 13.1% in the fourth quarter of 2024, according to the Statistical Service.
The government statistician, Dr. Alhassan Iddrisu, stated on Thursday that employment increased gradually, adding 409,000 jobs in the fourth quarter of 2024 compared to the third.
The Quarterly Labour Statistics of the Annual Household Income and Expenditure Survey (AHIES), which offers a thorough analysis of Ghana’s labor market dynamics, was released in July.
Along with sectoral and demographic trends, the report offers deconstructed insights on important labor metrics such as employment, unemployment, underemployment, and labor underutilization.
According to the Government Statistician, the nation’s unemployment rate decreased by one percentage point from 14.6 percent in 2023 to an average of 13.6% in 2024.
“This modest decline we’ve seen signals progress but reveals persistent disparities. Employment is growing, but too many jobs remain informal and insecure,” Dr. Iddrisu stated.
With an average of 5.5 million employees in 2024, the services sector continued to be the largest employer, followed by agriculture (4.8 million) and industry (2.1 million).
Seven out of ten unemployed people fall into the youth category, with the youth unemployment rate in 2024 averaging 32 percent for those aged 15 to 24 and 22.5 percent for those aged 15 to 35.
“This evidence highlights the urgency of expanded and more focused labour market practices and policies, such as retraining and reskilling programmes to combat skills mismatch and boost employability,” the Government Statistician noted.
He stated that addressing young and chronic unemployment, closing regional gaps, formalizing informal labor, and matching skill development to market demands continue to be the nation’s top goals.
In addition to reforming Technical and Vocational Education and Training (TVET) to better meet training and demand, he encouraged the government to expand apprenticeship and job placement services and open up channels for small enterprises to obtain inexpensive loans.
Dr. Iddrisu stated that the government would not be the only entity tackling the nation’s unemployment problem. He encouraged the private sector to create structured internships and entry-level positions for recent graduates and to expand collaborations with educational institutions to ensure that academic programs align with the demands of the labor market.
In order to have the greatest possible impact, he requested the nation’s development partners to connect donor programs with Ghana’s employment priorities and allocate more funds to scalable youth employment projects and rural job creation outlets.
Source: newsthemegh.com