Employment Conundrum: Limited business expansion constrains job opportunities
Chief Executive Officer (CEO) of the Ghana Employers Association (GEA), Alex Frimpong, has offered insights into the challenges confronting the nation’s employment sector.
Mr Frimpong in an interview on PM Express underscored that the inability of businesses to expand within the prevailing macroeconomic environment is hindering their ability to absorb the influx of fresh graduates from tertiary institutions.
Shedding light on the pragmatic approach businesses are adopting in the face of economic uncertainties, the CEO of GEA clarified that the scarcity of vacancies is not a reflection of the lack of quality of graduates emerging from Ghana’s institutions but rather a consequence of limited expansion within the corporate sphere.
“We are not expanding as a business in recent times because of the current macroeconomic environment, and the best thing to do now is to try and keep the little that we have.
“We don’t have the requisite vacancies to employ all these people and this has nothing to do with the quality of graduates coming out of our institutions”, he asserted.
His remarks were prompted by the latest Ghana Statistical Service unemployment report, revealing a notable surge in unemployment among graduates and individuals with higher education.
Addressing the changing dynamics of the job market, Mr Frimpong revealed that businesses are now more inclined to seek candidates with existing skills, thereby reducing their readiness to train fresh graduates. The assertion aligns with a broader sentiment voiced by Seth Twum Akwaboah, CEO of the Association of Ghana Industries (AGI), who emphasized the importance of skills over academic qualifications, particularly in the manufacturing sector.
The discourse further touched upon the expectations of graduates, with Mr Frimpong pointing out that some demand high salary levels and improved working conditions. However, he clarified that the primary obstacle lies in the limited capacity of businesses to absorb new talent.
Seth Twum Akwaboah echoed the sentiment, emphasizing that the manufacturing sector prioritizes skills and contributions to the business over educational qualifications. The implication is that possessing a higher degree may not automatically translate into enhanced employability without a corresponding set of practical skills.
“So don’t think that because you have a PhD, automatically you should command this level of salary and working conditions. For us, it’s about the skills and what you are bringing to the business and the manufacturing firms”, he quipped.
