KEY POINTS
- The shortage of educated labor force in Ghana creates barriers to productivity improvements throughout the economy.
- Labour productivity in Ghana stands considerably lower than the level of developed nations, and wages remain insufficient.
- Experts urge urgent investment in education and vocational training to boost economic transformation.
Ghana’s economic growth is facing a significant challenge due to a poorly skilled workforce, with 74 percent of workers lacking education beyond Junior High School (JHS), according to labour economist Prof. William Baah-Boateng.
Speaking at the launch of the Productivity, Employment, and Growth Report on February 24, 2025, he emphasized that this skills gap is holding back productivity and economic transformation.
Baah-Boateng revealed that out of the workforce, 20 percent lacked any education, while 54 percent stopped at the Junior High School (JHS) level.
This, he said, limits productivity growth and prevents the country from achieving its full economic potential. “We cannot expect to compete globally or transform our economy with a workforce that lacks the necessary skills,” he stated.
Low productivity and wage disparities
The labour productivity of Ghana shows noticeable progress but still trails the productivity rates of well-developed nations.
Workers in Ghana produce an average of $6 per hour, compared to $70 per hour in the United States. According to Baah-Boateng, the large productivity deficit demonstrates the immediate necessity for reforms.
Although the mining sector recorded the highest productivity growth at 21.7 percent, it has not significantly contributed to job creation.
The majority of jobs in household agriculture and informal urban services generate minimal contribution to economic expansion because they operate at low productivity levels.
Additionally, the wages in Ghana fail to catch up with the rate of productivity growth in the country. Laborers mostly working within the informal economy do not receive compensation that corresponds to their actual work value.
According to Baah-Boateng, the economic inequality gap alongside workforce participation reluctance results from this imbalance.
Call for investment in education and skills training
Baah-Boateng pressed the government to allocate immediate funds for educational development and vocational training as a solution to both intellectual shortages and productivity improvement.
According to Graphic Online, he pointed out that youth unemployment at 29.6 percent requires specific skills development initiatives to resolve this critical issue.
He advocated for strong backing of manufacturing and commercial agriculture and utilities since these sectors can both create new jobs and pay higher wages.
“The future of manufacturing will be crucial to Ghana’s economic growth,” he noted. “It is a sector with the capacity to create jobs and increase productivity, and it must be given serious attention.”
Ghana faces potential barriers to its 24-hour economy vision as experts predict that immediate workforce skill enhancement is crucial or the country will fail to execute President John Dramani Mahama’s strategic economic initiative.
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