Job Creation in Ghana’s Productive Sector Constrained by Weak Labour Demand, Says World Bank
Ghana’s economy is failing to generate enough high-quality jobs in its most productive sectors, limiting opportunities for workers and constraining long-term growth, the World Bank has warned.
In its latest Ghana Economic Update, launched in Accra, the Bank said that manufacturing and modern services — typically engines of higher productivity — remain too small to absorb significant numbers of workers.
Instead, large swathes of the labour force are pushed into low-productivity activities, particularly in agriculture and informal services, where income growth is limited.
The report highlighted the country’s “minimal structural transformation” over the past decade, with agriculture still employing a significant share of the workforce despite its low productivity.
It blamed regulatory inefficiencies, trade barriers and inadequate infrastructure for slowing private sector expansion and deterring investment in sectors that could create more mid-level and skilled jobs.
The Bank urged targeted reforms to improve the business environment, enhance infrastructure and promote value addition in agriculture and industry, arguing such measures would stimulate labour demand and support more sustainable livelihoods.
