Informal workers comprise 80% of Ghana’s workforce – new report

“The report pointed out that informal employment has remained highly pervasive in Ghana, with no substantial reduction over the past decades.” 

According to the Ghana Statistical Service, labour productivity grew by an average of 3.2% annually between 1991 and 2019, with key gains concentrated in capital-intensive sectors such as mining and finance. 

Report reflects slow industrial expansion 

The manufacturing sector recorded a 14% productivity increase between 2013 and 2022, yet employment grew by only 2.5% in the same period, reflecting slow industrial expansion. 

Similarly, the mining sector saw high productivity growth but little job creation, highlighting Ghana’s reliance on industries that do not generate widespread employment opportunities. 

Notes the news website CitiNewsroom.com: “The report also reveals a widening gap between productivity and wages. While sectors such as finance, insurance and professional services have seen stronger wage growth, industries like household agriculture, trade, and repair services have recorded slow or stagnant wage increases despite productivity improvements. 

“A sectoral breakdown shows that commercial agriculture, transportation, utilities and manufacturing are among the industries contributing to both job creation and productivity gains. 

“However, Ghana’s economic transformation remains slow, with many workers transitioning from traditional trades to low-productivity urban services, limiting overall economic benefits.” 

To address these challenges, the report calls for greater investment in industrialisation, expansion of commercial agriculture, and policies to integrate informal businesses into the formal economy.