Ghana’s Growth Failing To Deliver Jobs, World Bank Warns

The World Bank has raised concern that Ghana’s economic expansion over the past decade has not translated into sufficient job creation, warning that the gap between growth and employment threatens the country’s development prospects.

In its latest Ghana Economic Update, the World Bank noted that while the economy recorded steady growth between 2012 and 2023, net employment rose by only 250,000 despite a 2.7 million increase in the working-age population.

The report, titled “Addressing Labour Market Challenges and Opportunities in Ghana’s Economic Landscape”, revealed that most of the new jobs were concentrated in low-productivity sectors, with manufacturing and higher-value services witnessing only marginal gains. As a result, many Ghanaians remain in low-quality employment with limited opportunities for upward mobility.

The Bank further observed that while more educated workers are entering the labour market, the supply of high-quality jobs has not matched the rising pool of skilled labour. It said average earnings have been declining, underemployment remains high, and workers are often moving between equally low-paying jobs.

Commenting, World Bank Country Director for Ghana, Sierra Leone and Liberia, Robert Taliercio, said “despite GDP growth, job creation in Ghana has not kept pace with the expanding labour force. Job creation in Ghana’s most productive sectors has been limited, forcing many workers to remain in low-productivity roles with low-quality pay.”

The report also highlighted a mismatch between education and labour market demand, with youth and women disproportionately affected. Many young people continue to face difficulties in transitioning from school to work, while gender disparities in access to quality jobs remain wide.

To address these challenges, the World Bank recommended an integrated approach combining investment in human capital with business-enabling policies and private sector growth. It called for reforms to improve education quality, align training with market needs, and promote high-potential sectors such as manufacturing, agro-processing and digital services.

Also, World Bank economist and lead author of the report, Kwabena Gyan Kwakye, said “job creation hinges on unlocking private investment in sectors with potential for scale and productivity gains.”

The report also identified agriculture as a major employer that could deliver productivity gains if supported with value-chain development and climate-smart practices. It also urged the strengthening of social protection systems to cushion vulnerable groups during economic transformation.

The bank warned that Ghana’s working-age population is set to rise further in the coming years, and failure to act urgently could lead to higher unemployment, widening inequality, and mounting social pressures.

“More and better jobs are essential for achieving inclusive growth and higher living standards. If Ghana can align economic growth with strong labour market outcomes, it will be well-placed to reap the benefits of its demographic transition,” Kwakye said.