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Unemployment Rate Falls to 13.1% but Youth Joblessness Remains Acute, Says GSS

2 months ago
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Unemployment Rate Falls to 13.1% but Youth Joblessness Remains Acute, Says GSS

Ghana’s national unemployment rate recorded a marginal decline at the close of 2024, according to the July 2025 edition of the Quarterly Labour Statistics released by the Ghana Statistical Service (GSS).

Data collected from over 9,000 households showed that the unemployment rate eased from 13.3 percent in the third quarter of 2024 to 13.1 percent in the fourth quarter.

Government Statistician, Dr. Alhassan Iddrisu, described the decline as a positive signal but cautioned that labour market distress persists, particularly among the youth.

The data indicates that young people continue to face the harshest conditions in the labour market. In 2024, unemployment among those aged 15 to 24 stood at 32 percent, while individuals between 15 and 35 years recorded an average of 22.5 percent.

“This modest decline we’ve seen signals progress but reveals persistent distress. In 2024, youth unemployment remains alarmingly high at 22.5 percent for ages 15 to 35 and 32 percent for ages 15 to 24,” Dr. Iddrisu noted.

“This evidence highlights the urgency of expanded and more focused labour market practices and policies such as retraining and re-skilling programmes to combat skills mismatch and boost employability,” he added.

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Dr. Iddrisu stressed that the persistent youth joblessness calls for urgent interventions, pointing to the government’s 24-hour economy policy as one potential avenue for absorbing the country’s growing youthful labour force.

“This reflects persistent youth unemployment challenges and disengagement from both work and education, reinforcing the need to expand economic opportunities. We can do this through programmes such as the 24-hour economy, which is currently under implementation, to create more flexible and accessible job opportunities,” he said.

Beyond macro-level policies, the GSS recommended reforms and targeted initiatives to address labour underutilisation and the mismatch between education and industry demand. These include scaling up apprenticeships, graduate employment schemes and job placement services, as well as reforming and expanding Technical and Vocational Education and Training (TVET).

“There would also be the need for government to reform and expand the TVET to match training with demand, especially in digital, industrial and green economy sectors. We recommend also that government should provide affordable credit to small businesses to boost job creation, especially for women and youth,” Dr. Iddrisu added.

While Ghana’s overall unemployment rate shows a modest improvement, analysts caution that sustained reductions will depend on how effectively policies target youth joblessness and align workforce skills with emerging economic opportunities.

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