[ 2016-05-11 ]

Where are the jobs? - Unemployment rate soars
In a country where the underemployment rate is 33%
and 69% of the working population are in
vulnerable employment, in addition to a situation
where the chances of a major economic turnaround
is faint, the prospects of a decent job for the
fast-growing youth population look bleak.

Education experts and researchers have painted a
grim picture about the growing graduate
unemployment levels and warned that it is likely
to climb to more than 271,000 this year from the
current 200,000.

Studies by policy think-tanks such as the
Institute of Statistical, Social and Economic
Research (ISSER), Centre for Economic Policy
Analysis (CEPA), and the Centre for Democratic
Development (CDD) have warned that unemployment
among young people, particularly among graduates,
have reached unacceptable levels.

A new study by CDD revealed that 14% of Ghana’s
energetic unemployed school leavers have decided
to travel abroad for greener pastures should their
situations remain the same in six months.

The graduates have been unemployed in the labour
market for a period of five years spanning from
the time they completed their National Service.

Human Resource Consultant, Tahiru Mahmous
believes unemployed graduates and youth
unemployment in the country could be in the
millions.

According to him, unemployed graduates in Ghana
could be a little above one million whilst youth
unemployment - mainly dropouts from senor high
schools and junior high schools - are in the
millions.

3,000 Applicants chase 5 positions

Speaking to The Finder, Mr Tahiru said though it
is difficult to get independent and accurate
labour figures, a survey by his institution shows
that the unemployment situation in the country has
reached an alarming rate.

For example, he said: “We advertised five
positions for skilled workers this year and we got
a little over 3,000 applicants. That tells you the
extent of unemployment in Ghana.”

Today, unemployment seems to be the most serious
development challenge confronting the nation, so
much so that it has become the number one concern
of Ghanaians that they want the government to
address.

Constitution on employment

In Ghana, the importance of employment is
underscored by the recognition of the right to
work not only as a basic human right but also as a
constitutional right.

Article 24 (1) of the 1992 Constitution, for
instance, defines this right as an economic right:
“Every person has the right to work.”

Article 34 (2) even makes it obligatory on the
government to report annually the realisation of
the right to work.

This right to work, however, is gradually
becoming very difficult for both government and
individuals to realise due to the rising levels of
joblessness.

2015 Ghana Living Standards Survey 6

The 2015 Ghana Living Standards Survey 6
(GLSS)-Labour Force Report of Ghana Statistical
Service is a nationwide household survey which
provides information in assessing the living
conditions in Ghanaian households, providing some
startling statistics.

According to the survey, 80% of Ghanaians aged 15
and above are economically active, which means
they are either employed or looking for a job.

It noted that 5.2% of the population aged 15 and
older are unemployed, but many believe this figure
is too low and does not represent the actual
situation on the ground.

It stated that 75% of the population aged 15 and
older are employed and the breakdown is as
follows: Industry - 14%, Services - 41%; and
Agriculture - 45%.

Services employ 41% of workers

It is commendable that the services employ 41% of
workers in the country. However, most employees in
the services yearn for a different job, and some
even consider themselves unemployed because of low
remuneration.

For example, it was reported in the media last
year that, averagely, workers of a big restaurant
were being paid GH¢3 per day – far below the
daily minimum wage of GH¢7.

According to the report, staff receive between
GH¢60 and GH¢250 as monthly earnings in this
popular restaurant.

Therefore classifying such people is misleading
considering the high cost of living in the
country.

Agriculture employs 45% but…

The contribution of agriculture, the backbone of
Ghana’s economy, to the country’s Gross
Domestic Product (GDP) has dropped by an alarming
12.8% in just seven years.

It dropped from 31.8% in 2009 to a mere 19% as of
September 2015, a period of seven years.

With this alarming decline in the fortunes in
agriculture, it is obvious that the fortunes of
farmers have also declined.

Consequently, it is possible that most farmers no
longer consider their profession as a good
employment avenue and may be looking for other
jobs.

It must be noted that most farmers depend on
small land sizes; therefore, proceeds from their
farms are woefully inadequate to take care of
their families.

As a result, most farmers in the country,
especially in areas where land is scarce and the
farmers depend on rain-fed agriculture, see their
profession as unsustainable employment.

It is common to receive the request from the
youth in rural areas to help them secure jobs in
urban areas since they can no longer depend on
agriculture for a living.

Industry employs 14%

Business associations have over the years
lamented the impact the high cost of doing
business in Ghana is having on their operations.

Issues bordering on new and high taxes, increased
utility tariffs, rising inflation and interest
rates are some of the major factors hampering the
growth of companies in the country.

Consequently, companies have laid off staff,
especially during last year when the Industrial
and Commercial Workers Union (ICU) said over
13,000 Ghanaians lost their jobs as a result of
the crippling power crisis, called dumsor.

Source - peacefmonline.com

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