The Ghana Federation of Labour (GFL) has urged the government to initiate policies that will provide more youth opportunities and address the country’s high unemployment rate. The GFL said that the current situation of youth unemployment is a threat to national security and social stability.
According to the GFL, the youth unemployment rate in Ghana was 12.4% in 2017, which was higher than the overall unemployment rate of 6.7%. The GFL also cited a report by the World Bank that estimated that about 48% of Ghanaian youth were underemployed, meaning that they worked less than 40 hours per week or had low incomes.
The GFL said these figures indicate a lack of decent and productive jobs for the youth, especially those with higher education and skills. The GFL blamed the situation on the poor performance of the economy, the lack of industrialization, the over-reliance on imports, and the inadequate investment in human capital development.
The GFL said that the government should prioritize job creation and economic transformation as part of its post-COVID-19 recovery plan. The GFL suggested some measures that could help address the youth unemployment challenge, such as:
- Expand and diversify the agricultural sector to create more value-added activities and agro-processing industries.
- Promoting entrepreneurship and innovation among the youth by providing access to finance, mentorship, and market linkages.
- Enhancing technical and vocational education and training (TVET) to equip the youth with relevant skills and competencies for the labor market.
- Strengthening social protection systems to cushion the vulnerable and marginalized groups from the effects of unemployment and poverty.
- Improving labor market information systems to match the supply and demand of labor and facilitate career guidance and counseling.
The GFL said these measures would require a strong collaboration between the government, the private sector, the labour unions, and other stakeholders. The GFL also called for a national dialogue on youth unemployment to generate consensus and commitment on the way forward.
The GFL’s statement comes at a time when youth unemployment has become a global concern, especially in Africa. According to the International Labour Organization (ILO), the global youth unemployment rate was 13.6% in 2020, which was the highest in history. The ILO also projected that the youth unemployment rate in Africa would increase from 20.8% in 2019 to 22.4% in 2021.
The ILO attributed the rise in youth unemployment to the impact of the COVID-19 pandemic, which disrupted economic activities, reduced incomes, and increased inequalities. The ILO warned that if not addressed, youth unemployment could have long-term consequences for social cohesion, political stability, and human development.
However, despite the challenges, some experts believe there are opportunities for creating more jobs for the youth in Africa. For instance, a recent report by McKinsey & Company identified six sectors that could generate up to 30 million new jobs by 2030 in Africa. These sectors are agriculture, manufacturing, retail and hospitality, health care, construction, and renewable energy.
The report also highlighted some enablers that could facilitate job creation in these sectors, such as improving infrastructure, enhancing digital connectivity, fostering regional integration, supporting small and medium enterprises (SMEs), and investing in education and skills development.
Therefore, there is hope that with concerted efforts from all stakeholders, Ghana and other African countries can overcome the youth unemployment challenge and harness their demographic dividend for sustainable development.
Source: Citi Newsroom
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