Ghana Urged to Boost Investment in Green, Digital, and Care Economies to Tackle Youth Unemployment
Ghana must undertake a series of strategic policy interventions to address the pervasive issue of youth unemployment, according to Anthony Oduro-Denkyirah, a Labour Economist at the Ghana Statistical Service (GSS). Despite a recent decline, the number of young people not in education, employment, or training (NEET) remains alarmingly high, highlighting an urgent need for effective policy action.
A GSS study reveals that the NEET youth population has decreased by nearly half a million as of Q3 last year, yet almost two million young Ghanaians are still idle. To combat this, Oduro-Denkyirah has outlined several critical areas for policy focus.
Strategic Investment in Emerging Sectors
Oduro-Denkyirah advocates for increased investment in the green, digital, and care economies. He argues that these sectors hold significant potential for job creation. Investment in the green economy can promote environmental sustainability while generating employment. The digital economy offers vast opportunities through technology and digital infrastructure development. Similarly, the care economy, encompassing healthcare and childcare services, is poised to create numerous jobs.
Implementation of Active Labour Market Policies (ALMPs)
To tackle youth unemployment, Oduro-Denkyirah proposes the implementation of ALMPs combined with income support measures. These policies should be delivered as integrated packages, encompassing employment services, job creation programs, subsidized employment and wages, training, and entrepreneurship promotion. Such measures, he contends, should be executed in collaboration with local stakeholders to effectively reach the most disadvantaged youth.
Access to Affordable Credit
The economist underscores the importance of providing affordable credit to facilitate business start-ups and expansion. He notes that young entrepreneurs often face significant challenges in securing financing through conventional banks, and affordable credit can be crucial in supporting their ventures and creating further employment opportunities.
Investment in Education and Training
Oduro-Denkyirah emphasizes the need for substantial investment in public education and training, particularly in expanding sectors. Quality education, along with Technical and Vocational Education and Training (TVET), is essential to equip young people with relevant skills, easing their transition into the labor market. Additionally, promoting quality apprenticeships can further enhance job readiness.
Macroeconomic Policy Considerations
The economist calls for macroeconomic policies that prioritize youth employment outcomes. He argues that such policies are essential to support better employment opportunities for young people, thereby driving economic growth.
Alarming Regional Disparities
The GSS report highlights significant regional disparities in NEET rates. The Greater Accra Region records the highest NEET rate at 26.9%, followed by the North East Region at 19.5%. The NEET rate is notably higher for females (21%) compared to males (15%). Despite overall improvements, Greater Accra is the only region where NEET rates have increased.
Economists Sound the Alarm
Prominent economists, including Prof. Godfred Bokpin and Prof. Peter Quartey, have echoed the urgency of addressing youth unemployment. They warn that the high NEET rate poses a threat to national security and economic growth. Prof. Bokpin stresses the need for intentional spending in job-rich sectors with high growth potential, while Prof. Quartey calls for the effective implementation of youth-focused policies, particularly in technology-enhanced agriculture.
Addressing Ghana’s youth unemployment crisis requires a comprehensive and multi-faceted approach. Strategic investments in emerging sectors, robust ALMPs, access to affordable credit, substantial investment in education and training, and youth-focused macroeconomic policies are essential. Effective implementation of these measures could significantly reduce the NEET rate, fostering economic growth and stability in Ghana.
