ECONOMY

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

By our African Marketing Confederation News Team | 2025

But the study by the Ghana Statistical Service emphasises that the informal economy contributes only 27.4% to national GDP.

Ghana’s informal sector employs nearly 80% of the country’s workforce but contributes only 27% of GDP – emphasising a worrying productivity gap. This is according to the newly released ‘National Report on Productivity, Employment and Growth’ from the Ghana Statistical Service. 

 

The report notes that, despite providing a livelihood for most workers, the informal sector is beset by low productivity, underemployment and stagnant wages. These are a significant barrier to economic growth. 

 

“By this, 80% of Ghana’s workforce found in the informal sector contribute less to the GDP, compared to the remaining 20% operating in the formal economy,” comments the online news website My Joy Online.

An informal fish seller in Ghana. Photo: Sir Amugi, Wikimedia Commons

“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.

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Rozanne
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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.