As Ghana’s economy continues to grow, a troubling trend is emerging – a large portion of the country’s youth remain either unemployed or trapped in low-paying, informal jobs.
A new digital tool called the Africa Youth Employment Clock, launched this week by World Data Lab (WDL) and the Mastercard Foundation, paints a concerning picture of the youth employment landscape in the West African nation.
According to the Clock’s data, while 6 million Ghanaian youth between the ages of 15 and 35 are employed, a significant number of these jobs are in the informal sector or in low-productivity agriculture and services.
Dr. Reshma Sheoraj, Vice President of Strategic Engagements at WDL, highlighted this issue:
“It’s not a question of unemployment, it’s a question of people getting more dignified, fulfilling jobs, and higher wages.”
The data reveals that approximately 1.2 million Ghanaian youth live in extreme poverty, defined as earning less than $2.15 per day. “We saw a lot of informality, and people are actually not taking home substantial income. So they’re living in what we call working poverty,” Dr. Sheoraj explained. “It goes back to the quality of the jobs, the higher paying jobs, and how do we boost more productivity in the sectors to kind of deal with the issue of low wages in an economy.”
The situation is particularly dire for young women, with the Clock showing low labor force participation rates among this demographic. “Women’s participation in the labor force is important in most economies, and I think there’s more that can actually be done to improve women’s labor force participation and get them into real employment in Ghana, because I think the economic benefits of women contributing would be enormous as well,” said Dr. Sheoraj.
She proposed that offering incentives and support systems, like childcare assistance, could help reduce the burden of household responsibilities, allowing more women to participate meaningfully in the workforce.
The Africa Youth Employment Clock, available at www.africayouthjobs.io, is designed to provide policymakers, development actors, and other stakeholders with real-time data and projections on youth employment trends across Africa. This tool is a collaborative initiative between WDL and the Mastercard Foundation, which aims to enable 30 million young Africans to secure dignified and fulfilling employment by 2030.
“This tool will play a key role in delivering precise labor market insights to support our youth empowerment efforts,” said Rica Rwigamba, Country Director for Ghana at the Mastercard Foundation. “As we witness unparalleled growth in the continent’s youth population this decade, we recognize young women and men of Africa as the dynamic workforce and leaders capable of solving local and global problems.”
Experts contend that tackling the youth employment crisis in Ghana and throughout Africa demands a comprehensive strategy, encompassing investments in education, skills training, and job creation endeavors, especially in sectors with promising growth prospects. Enhancing access to finance and offering entrepreneurship support to young individuals could also prove instrumental in nurturing sustainable livelihoods.
With Ghana’s population on the rise, neglecting to confront the youth employment dilemma could lead to significant social and economic ramifications. The Africa Youth Employment Clock offers a data-driven instrument to assist policymakers and stakeholders in unleashing the potential of the continent’s burgeoning workforce.