Youth Jobs Crisis Looms as Ghana’s Workforce Grows Faster Than Employment Opportunities

Ghana’s job market is struggling to keep pace with its rapidly growing working-age population, leaving millions of young people without adequate employment opportunities, according to the World Bank’s 9th Ghana Economic Update, launched Thursday in Accra.

The report, titled “Addressing Labor Market Challenges and Opportunities in Ghana’s Economic Landscape”, highlights a worrying trend: between 2012 and 2023, the number of Ghanaians in employment grew by only about 250,000, while the working-age population expanded by nearly 2.7 million — largely due to a surge in youth entering the job market.

This sharp imbalance has triggered a steep drop in labour force participation, especially among young people aged 15 to 29. Their participation rate fell from 62% to just 41% over the period, meaning fewer youth are actively working or seeking work.

Middle-Skilled Jobs in Short Supply
The World Bank notes that Ghana’s economy has not created enough middle-skilled jobs to absorb new entrants. This gap forces many young people into informal, low-paying work, while others leave the labour market altogether. A growing number are also seeking opportunities abroad, contributing to rising out-migration.

Experts warn that the implications of this trend are far-reaching. Without steady job creation, Ghana risks losing the productivity potential of its youthful population — a demographic advantage that, if harnessed, could drive economic growth for decades.

Call for Skills and Private Sector Growth
The report urges the government to focus on boosting job creation through policies that encourage private sector expansion, investment in labour-intensive industries, and stronger skills training programs. Bridging the mismatch between education output and market demand, the Bank says, is critical to equipping young Ghanaians for available opportunities.

“Ghana’s youth population is growing rapidly, but the economy is not creating enough decent jobs to match. Without urgent action, this could undermine long-term development goals,” the update warns.

With the right mix of investment, training, and structural reforms, the World Bank believes Ghana can turn its demographic surge into a “demographic dividend” — but the window of opportunity is narrowing.