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Magnitude and Impact of Youth Unemployment in Ghana

2011, West Africa Review

Youth unemployment in Africa today is of critical concern. Youths (ages 15-24) in the region constituted 36.9 percent of the total working age population over the period 1995-2005. Unemployed youths are forced to find alternatives to generate income, including survival-type activities in the informal sector and criminal activity in extreme cases. Urban youth unemployment is exacerbated by rural-urban migration. The article examines how the unemployment situation in Ghana is affecting the youth. Specifically, it looks at the magnitude of the unemployment problem facing the youth in the country and the impact of youth unemployment on the economy. A case study approach within the context of descriptive analysis was adopted. The methods of analysis include reviews of existing data sources and descriptive analysis of findings contained in the censuses of 1960 through to 2000 as well as validation exercise using information provided by the Ghana Living Standards Survey. The study recommen...

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Stephen Ameyaw

Youth unemployment is one of the biting problems bedevilling many countries including Ghana and majority of the youth around the world are actively searching for jobs without any success ILO (2012). Wa Municipality and according to Ghana Statistical Service (2012)) about eighty percent of the unemployed youth find themselves in prison for misdemeanours. The paper examines the reasons and implications of youth idling without jobs in the Wa Municipality. A cross-sectional design was used with some descriptive data and triangulated with qualitative data. Sampling was purposive and in many cases simple random sampling was used. An interview guide and questionnaires were also used for data and analysed concurrently. The study showed that youth impatience, corruption, low level of education, refusal of employers to pay employees what is due them, financial constraints were reasons why youth idle in the Wa municipality. Also, motorbike thefts, livestock stealing and electrical appliances a...

Miguel Alberto Novoa

Williams Abomaye-Nimenibo PhD

Canadian Social Science

Kakwagh Venatus

SCIREA Journal of Economics

Andy Dumevi

Purpose-Ghana has consistently been ranked among the ten fastest-growing African economies since 2017, but in 2020, falling oil prices and the COVID-19 pandemic plunged the country into economic recession. The objective of this study is to measure the heterogeneous effects of the COVID 19 crisis, through the prism of unemployment, populations, and the Ghanaian economy. This involves identifying which profiles of job seekers, and which territory profiles have been particularly vulnerable to the crisis. Design/methodology/approach-The methodology followed in this study consists in carrying out linear regressions on data from the World Bank database to see which variables affect the unemployment rate. Findings-The additional financial costs generated by unemployment and the fear of unemployment also contribute to increasing the state's public debt. Research limitations/implications-. Any scientific work has its limits. Our research only focused on the effects of unemployment in Ghana; we could have looked at the case of other countries in the sub-region, namely ECOWAS. Practical implications-. In Ghana, as in the rest of the world, youth unemployment seems to be a truly structural phenomenon, as the elasticity of youth employment concerning GDP growth is limited. Social implications-. It is noted that a young person in a situation of unemployment and underemployment, constitutes a loss for himself and the society because he does not participate in the economic life of his environment or even his country.

Irene Appeaning Addo

This is an exploratory study examining the effect of the 1987 education reforms on youth unemployment in Ghana. The reform ushered in the Junior High School (J.H.S) and Senior High School (S.H.S) concepts. The number of years spent by pupils at primary and middle schools reduced from ten to nine years for primary and Junior High School, and that of students in Secondary Schools reduced from seven to three years. Some two years diploma courses at Polytechnic institutions increased to three years for Higher National Diploma and Undergraduate Degree Programmes at Universities increased from three to four years. The reforms led to increasing enrolment of pupils and students due to progressive policies instituted, including School Feeding Programme and Capitation. The reform also led to early completion of school which is not matched with expanded job opportunities. The technical and entrepreneurial skills purported to be acquired by students through the reforms were not realised because the equipment and tools provided for practical work was done one-off and never continued. Thus, the early completion of school, lack of jobs coupled with lack of technical, vocational and entre-preneurial skills of graduates from the schools have led to massive youth unemployment in Ghana. The total number of unemployed university graduates in Ghana is about 700,000. The study recommends that the education system should focus more on technical, vocational and technological programmes to make many school products innovative, and also graduates secure employable skills to develop entrepreneurship.

Arts and Design Studies

rufus akindola

This study employs qualitative and quantitative research methods to investigate the causes and effects of youth unemployment in Oye Local Government Area of Ekiti State. It was found that low level of education, the collapse of local industries, inadequate job creation and neglect of the agricultural sector by the State Government are largely responsible for youth unemployment in the local government area. The study also found that low standard of living and high crime rates are the direct results of youth unemployment and recommended the diversification of the economy to enhance the generation of full and part time job opportunities, including the revitalisation of collapsed local industries to absorb the growing number of unemployed youths. Keywords: Youth, Unemployment, Oye-Ekiti, Local Government, Crime, Nigeria

African journal of economic and sustainable development

Ebaidalla Mahjuob Ebaidalla

Yemisi Lydia Olaleye

This paper examines the effects of youth unemployment on socioeconomic development in contemporary Nigeria. Youth unemployment in Nigeria is due to high population growth, lack of employable skills due to inappropriate school curricula, perception of policy makers amongst other factors. Youth unemployment can make youths become frustrated as they have to depend on their family for sustenance because they cannot cater for their own needs. The implication of this is that the crises facing contemporary African youths in socioeconomic sectors, like employment, education, and other institutions, are addressed by the government. One striking revelation from this paper is that unemployment affects youth psychologically which can have many short term and long term effects. This paper concludes that tackling the problem of youth unemployment will really do the country good as it will become a better place, safer place and a country filled with talented and confident young men and women. It is, therefore, recommended that youth should be encourage not to only relying on white collar jobs alone but they should be ready to learn vocational jobs such as motor mechanic, fashion designing, catering, soap making, etc. while they are in secondary school. This can be done after school or weekend.

IOSR Journals

Ethiopia has the largest youth population in Sub-Saharan Africa. More than half of its population is under the age of 25, and 20% are between 15 and 24. From the total population of the Ethiopia, youth constitutes about 45 percent of the total population and 36.26 percent of which are urban population. A high level of unemployment is one of major social, economic and political problems in Ethiopia especially in recent time. Besides lack of employment opportunities for young people are among the critical development challenges facing the country and a key barrier to national efforts toward the achievement of the Millennium Development Goals. Currently, the Ethiopian youth unemployment rate is one of the highest in the world. However, some sources indicate that urban youth unemployment figures in Ethiopia shows a declining trend, although the high figures represent a major challenge. Compared with rural youth unemployment, urban youth unemployment is more prevalent. The objective of this study is to investigate the determinants of youth unemployment in Hawassa City. To this end the study conducted a cross-sectional study on a sample of 163 youth of Hawassa city using multistage sampling technique. The study also employed a probit model to identify determinants of youth unemployment Accordingly, the probit regression result reveled that five variables namely age of the youth, fathers' education of the youth, education of the youth, access to credit facilities and attitude towards job negatively and significantly affect unemployment. The study thus concludes that education (both of the youth and the parents), credit facilities and a positive attitude matters most in helping the youth get employed.

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Please note you do not have access to teaching notes, youth employment in ghana: economic and social development policies perspective.

World Journal of Entrepreneurship, Management and Sustainable Development

ISSN : 2042-5961

Article publication date: 27 October 2020

Issue publication date: 15 December 2020

Creating employment opportunities for the youth remains a dilemma for policymakers. In many cases, policies and programmes to tackle youth unemployment have produced little results, because such initiatives have failed to consider some fundamental inputs. In Ghana, youth unemployment rate has doubled or more than doubled the national average unemployment rate in recent years. The current study, therefore, examines how policies in the past two decades have affected youth unemployment rate and other development outcomes.

Design/methodology/approach

The study reviewed national economic development policy documents from 1996 to 2017 and other relevant policies aimed at creating employment opportunities for the youth, applying the content analysis procedure. Four main policy documents were reviewed in this regard. Data from secondary sources including International Labour Organisation (ILO), World Bank (WB), United Nations Development Programme (UNDP) and Ghana Statistical Service (GSS) were analysed to examine the trends in youth unemployment rate, human development index and GDP growth rate in Ghana over the years. There were also formal and informal consultations with youth and development practitioners.

The results of the study show that policies that promote general growth in the economy reduce youth unemployment, while continuation of existing youth programmes, expansion, as well as addition of new ones by new governments reduces youth unemployment rate. In particular, GDP growth and youth unemployment rate trend in opposite direction; periods of increased growth have reduced youth unemployment rate and vice versa. The period of Ghana Shared Growth and Development Agenda I & II witnessed better reduction (5.7%) in youth unemployment rate than any of the policy periods. This was not sustained, and despite the current youth employment initiatives, unemployment among young people still remained higher than the national average.

Research limitations/implications

The study provides relevant information on how development policies and programmes affect youth unemployment rate over time. In as much as it is not the interest of the study, the study stops short of empirical estimation to determine the level of GDP growth rate that can reduce a particular level of youth unemployment, which is a case for further research. Nevertheless, the outcome of the study reflects the data and methodology used.

Originality/value

To the best of the knowledge of the authors, this is a first study in Ghana that has attempted to directly link development outcomes such as youth unemployment to national economic development policies, although there are studies that have analysed the policy gaps and implementation challenges. This paper, therefore, bridges the knowledge of how development policies affect youth employment opportunities, particularly for Ghana.

• Development
• Unemployment

Acknowledgements

We acknowledged funding support provided by Forum for Agricultural Research in Africa (FARA) for the work. We are also grateful to Paul Boadu and O. A. Fatumbi for review and editorial support. However, the authors are wholly responsible for the views and opinions expressed in the article.

Jumpah, E.T. , Ampadu-Ameyaw, R. and Owusu-Arthur, J. (2020), "Youth employment in Ghana: economic and social development policies perspective", World Journal of Entrepreneurship, Management and Sustainable Development , Vol. 16 No. 4, pp. 413-427. https://doi.org/10.1108/WJEMSD-07-2019-0060

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Addressing Youth Unemployment in Ghana Needs Urgent Action, calls New World Bank Report

ACCRA, September 29, 2020 — A new World Bank report titled “Youth Employment Programs in Ghana: Options for Effective Policy Making and Implementation” identifies agribusiness, entrepreneurship, apprenticeship, construction, tourism and sports as key sectors that can offer increased employment opportunities for Ghanaian youth. It also calls for more investments in career guidance and counseling, work-based learning, coaching, and mentoring to equip young people with the skills needed for work. The report suggests that although these are not new areas, the government could maximize their impact by scaling-up these priority areas in existing youth employment interventions and improve outreach to the youth.

“ This report is another milestone towards addressing the unemployment challenge,” said Ignatius Baffour Awuah, Ghana’s Minister of Employment and Labour Relations . “It presents specific options to guide the government in the short to medium-term to enhance effective coordination of youth employment programs.”

Ghana is faced with 12% youth unemployment and more than 50% underemployment, both higher than overall unemployment rates in Sub-Saharan African countries. Despite major investments by both government and private sector, this challenge will intensify if job opportunities remain limited. To tackle youth unemployment, the report highlights the importance of having disaggregated data on youth jobseekers by location, gender, skills and capabilities to inform policy and funding decisions and respond with appropriate and tailored employment programs.

“Ghana's youth employment challenge is vast and requires an all-round, deliberate, and consistent response,” said Pierre Frank Laporte, World Bank Country Director for Ghana, Liberia and Sierra Leone . “Considering the options outlined in this report, future youth employment policy planning should not only address youth unemployment but should also build the human capital needed to sustain Ghana’s economy.”

The authors lay out key priorities to promote youth employment in Ghana:

• Importance to align formal education programs and skills development initiatives in the context of a fast-changing labor market that requires new and different skill sets, and to adapt to new technology.
• Partner with the private sector —such as involving employers in the design of training curricula and introducing certifications for occupational standards in order to adapt to the future of work.
• Integrate pre-employment support activities as part of the country’s current education system to better prepare young people for the transition to work.
•   Promote social inclusion initiatives to improve access to credit and management training for women entrepreneurs, as well as improve both infrastructure and equipment available for persons living with disabilities and ensure that no one is left behind.

In addition, the report emphasizes the need for greater collaboration among different stakeholders to reduce duplication and fragmentation of youth employment programming.

This report is accompanied by an inventory of public job programs in Ghana to inform policy makers and stakeholders on the existing landscape of youth employment programming.

• Story: Options for Effective Planning and Implementation in Ghana’s Youth Employment Sector
• Download the report: Youth Employment Programs in Ghana: Options for Effective Policy Making and Implementation
• Download the report: Ghana Jobs: An Overview of Public Jobs Programs in Ghana

Youth unemployment in Ghana: a research into this trend in the capital city, Accra

Addressing youth unemployment in Ghana by supporting the agro-processing and tourism sectors

Subscribe to africa in focus, ernest aryeetey , ernest aryeetey former brookings expert, secretary-general, african research universities alliance - united nations university priscilla twumasi baffour , and priscilla twumasi baffour senior lecturer, department of economics - university of ghana festus ebo turkson festus ebo turkson senior lecturer, department of economics - university of ghana.

June 29, 2021

As elsewhere in Africa, the issue of jobless growth in Ghana has become a major concern, particularly due to rising unemployment among the youth. Services have emerged as the driver of growth in Ghana, contrary to the experiences in East Asia and other newly industrialized countries where manufacturing exports led growth and added capacity to absorb low- to medium-skilled workers. In fact, in Ghana, manufacturing has performed abysmally, with an average growth rate of 3.2 percent between 2008 to 2017.

Despite the generally strong performance of the Ghanaian economy over the last two decades, (albeit with a slowdown in recent times), there is a disconnect between GDP growth and employment—a trend that has persisted for many years, as the country has averaged an employment-to-growth elasticity of 0.5 over the last two decades. However, recent evidence points to the role of emerging high-productivity sectors, such as agro-processing, tourism, and horticulture, among others, that share characteristics with manufacturing (particularly in the employment of low- to medium-skilled workforce), in solving the youth unemployment challenge through the generation of decent jobs in Ghana.

Thus, to examine how Ghana might best leverage recent growth trends for job creation, we recently published a paper identifying which of these sectors might play this role in Ghana . This research is part of a larger, multicountry project on policies for enabling “industries without smokestacks” (IWOSS) to both grow and absorb low-skilled labor. (For more on this project, see “ Exploring new sources of large-scale job creation: The potential role of Industries Without Smokestacks .”)

The state of the Ghanaian economy

The Ghanaian economy’s strong performance over the last two decades has not translated into job creation nor improvements in employment conditions, especially for the country’s growing youth population (Figure 1). Moreover, the country’s traditional reliance on primary commodities—notably gold, cocoa, and, more recently, oil—for exports has exposed it to international commodity price fluctuations, making the need for diversification and structural transformation more urgent.

Figure 1. GDP growth and employment in Ghana

Source: Authors’ illustration based on data from WDI.

With an average national unemployment rate of about 6 percent, unemployment among the youth (persons aged 15-35) is much higher at 12.1 percent with an additional 28 percent out of the labor force as discouraged workers. In the absence of unemployment benefits in the country, unemployment is simply not an option for most people, particularly the youth who often turn to the informal sector to earn an income. In fact, 1 in 3 young people in Ghana are self-employed in the nonagricultural sector as own-account workers in vulnerable jobs.

Employment projections show IWOSS sectors will dominate employment in the future

In our paper , we find that IWOSS sectors—particularly agro-processing and horticulture, transport and storage, hotels and restaurants (tourism), and construction—will contribute a little above 50 percent to total employment by 2035 (see Table 1).

Table 1. Employment in IWOSS and non-IWOSS (2017-2035)

Note: This table is a truncated version of Table 20 in the full paper. Source: Authors’ calculations based on National Income Accounts (published by the Ghana Statistical Service), GLSS V and GLSS VI, National Budget and Economic Policy Statements. See Appendix C for the Methodology used in the projections to 2035.

The job creation potential of agro-processing and tourism

In our research , we identify agro-processing and tourism as the IWOSS sectors best poised to address this challenge in Ghana because of their high employment generation potential and the demand for low to moderate skills—a feature that is consistent with the skills spectrum of the unemployment pool in the country. Indeed, the prospects for both agro-processing and tourism sectors in Ghana are high in terms of growth and other positive spillover effects with opportunities for job creation. The agro-processing industry is dominated by micro and small firms involved in value-addition along the agricultural value chain in horticultural products, vegetables, roots and tubers, and palm oil for both domestic and foreign markets. In the area of tourism, Ghana has several natural, cultural, and heritage resources (e.g., historical forts and castles), national parks, a beautiful coastline, and unique art and cultural traditions that can be a source of great attraction to the international community.

1 in 3 young people in Ghana are self-employed in the nonagricultural sector as own-account workers in vulnerable jobs.

Moreover, these IWOSS sectors have been strategically targeted under the government’s flagship industrial transformation program to address challenges of job creation, promote import substitution, increase revenues from exports, and boost rural income generation.

What skills are required to develop the IWOSS sectors?

Despite this promise, though, a number of obstacles stand in the way of these sectors’ growth and ability to absorb jobs. Prominent among these challenges is the persistent skills gap among the youth: Our projections generally suggest that low-skilled jobs (i.e., those requiring less than secondary education) will continue to dominate, and their importance may decline only marginally. Thus, we find that deliberate public effort is required to ensure the youth can be absorbed in the IWOSS sectors, which requires upskilling.

To better understand the nuances of these gaps, we conducted a survey with a sample of firms in agro-processing and tourism in which we inquired into requisite skills for potential employees. Results from the survey show that most employees possess basic and social skills, which conveniently meet the needs of employers. Conversely, system skills—developed capacities used to understand, monitor, and improve sociotechnical systems and also sorely needed by employers—were found to be lacking in both tourism and agro-processing firm employees. Figure 2 reveals the differences between the current skill level of workers and employers’ expectations.

Figure 2. Skills deficit in tourism and agro-processing firms

Source: Authors’ calculations based on survey data.

Importantly, given that surveyed firms largely reported that digital skills like data management and analytics, production management, mobile transactions, and social selling (in agro-processing), and online communication and mobile transactions (in tourism) will be vital to future employees, policymakers must strive to better incorporate such capacity building into curricula.

Unlocking growth potential of IWOSS and overcoming skills gaps

In order to unearth the employment generation capacity of IWOSS sectors, key constraints that inhibit the growth of these sectors have to be addressed. In the case of firms in tourism, such constraints include tax rates, policies, and administration; access to credit; and electricity supply. For firms in the agro-processing sector, these constraints include electricity supply, access to credit, unfair practices of informal competitors, and customs and trade regulations.

First, we recommend an overhaul of the overall policy environment toward the training of young people in the requisite skills to be productive in all sectors of the economy. More specifically, the government must prioritize and increase enrollment into technical and vocational education and training (TVET) for hands-on employable skills to support growth and provide a pathway for sustainable employment for young people.

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Second, the establishment of industrial parks, which is based on the positive spillover effects and upstream and downstream linkages associated with clustering and agglomeration, is often acknowledged to be essential for industrial development. Support to the private sector by the Ghana Free Zones Authority and Ghana Investment Promotion Centre for the establishment of industrial park infrastructure and special economic zones is anchored on such potential benefits.

Third, we recommend the strategic development of infrastructure as a critical stimulus to the drive for diversification and industrialization in the country.  Fourth, government should intensify efforts at providing long-term financing to support the value chains of these sectors and upgrade them to address the issue of IWOSS firms not being well advanced, with a relatively low degree of value-addition by all firms at various stages.

In the end, we find that the agro-processing and tourism sectors can be critical for addressing the country’s jobless growth challenges, if interventions like improved infrastructure, better access to long-term financing, and enhanced digitization, among others, can be implemented. These efforts must be complemented with various incentives to local firms as well as institutional arrangements to increase local demand. ( See the paper for a full list of policy recommendations. ) Finally, given the increasing importance of technologies in both agro-processing and tourism, the country must invest in complementary digitalization for actors to adapt and be competitive in the changing nature of work globally.

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Exploring Graduate Unemployment Problem in Ghana: Challenges and Strategies

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