Ghana Statistical Service Report Reveals Slow Earnings Growth Compared to Productivity Gains
The Ghana Statistical Service (GSS) has released the first edition of the “National Report on Productivity, Employment, and Growth,” revealing that average earnings in Ghana have increased at a slower pace than productivity growth over the years.
The report, which examines labour and total productivity trends from 1991 to 2022, highlights that sectors such as utilities, construction, and tourism recorded the highest earnings growth relative to productivity.
Conversely, more informal sectors, including household agriculture and trade and repair services, have experienced slower earnings growth relative to productivity gains.
Speaking at the launch of the report, Government Statistician, Professor Samuel Kobina Annim, emphasized the importance of the findings in shaping policy direction.
“We are gathered here in pursuance of the new focus that we have adopted as a Service. This new focus has to do with not presenting statistical outputs but presenting statistics in a manner that is policy-relevant. What we are doing today is focusing on three key areas: productivity, employment, and economic growth,” he stated.
Prof. Annim further explained key distinctions in productivity measurements, stating, “Labour productivity measures how efficiently workers produce goods and services over a specific period. Total productivity measures how efficiently multiple inputs, like labour, capital, and materials, are used together to produce output and drive growth.”
The report indicates that Ghana has achieved a moderate level of labour productivity growth, with accelerated growth between 2010 and 2016 following the start of oil extraction. While Ghana’s annual labour productivity is higher than the average for lower-middle-income countries, it remains below that of upper-middle-income economies.
However, total productivity growth has been limited, with gains concentrated in a few sectors, such as mining, rather than broadly distributed across the economy.
Sectoral analysis reveals significant disparities. While productivity has increased in household agriculture and trade, these sectors have also experienced job losses as workers transition into lower-productivity roles in construction and urban services.
The mining sector has recorded high productivity growth but has not translated into substantial job creation. In contrast, commercial agriculture, manufacturing, transportation, and utilities have shown both productivity gains and employment growth.
The findings underscore the need for strategic investment in sectors capable of generating both productivity and decent employment growth.
The report concludes by identifying commercial agriculture, transportation and utilities, and manufacturing as key sectors requiring intensified investments in labour and capital due to their contributions to economic growth and job creation.
