Jobs in Ghana: A Promise Unfulfilled

NPP’s 2016 Manifesto had a simple and powerful title: “Change. An Agenda for Jobs”. In it, the party’s goal was eloquently stated: “On the economy, our goal is simple: to build the most business-friendly and people-friendly economy in Africa, which will create jobs and prosperity for all Ghanaians”.

One of the major means to achieve this goal was the “One District, One Factory” initiative – NPP’s flagship programme, and also one of its flagship promises. According to Wikipedia, the programme “is aimed at creating jobs for Ghanaians through the setting up of factories and industries which will in turn move the country towards greater industrialization”.

Was “One District, One Factory” successful in creating jobs? And, in general terms, was NPP successful in its stated goal of creating jobs?

To find out, let’s look at the data.

In 2016, the unemployment rate in Ghana was 6.77%. In 2019, it was 6.78% (source: statista.com, https://www.statista.com/statistics/808481/unemployment-rate-in-ghana/). Basically, no change occurred.

In 2016, 18.6% of Ghanaian employees were active in the industrial sector. In 2019, the percentage was almost identical: 18.62% (source: statista.com, https://www.statista.com/statistics/447530/employment-by-economic-sector-in-ghana/). Again, no change occurred.

In 2016, the labor force participation rate for ages 15-24 (the proportion of the population ages 15-24 that is economically active) was 42.18%. In 2019, it was 41.67%. (Source: International Labor Organization, ILOSTAT Database.)

In 2016, the labor force participation rate for ages 15-64 (the proportion of the population ages 15-64 that is economically active) was 68.97%. In 2019, it was 68.95%. (Source: International Labor Organization, ILOSTAT Database.)

In 2016, the labor force participation rate for ages 15 and older (the proportion of the population ages 15 and older that is economically active) was 67.47%. In 2019, it was 67.42%. (Source: International Labor Organization, ILOSTAT Database.)

Apart from a very modest decline in labor force participation in the population ages 15-24, nothing really changed from 2016. (The data for labor force participation in Ghana can be studied here: https://www.indexmundi.com/facts/ghana/labor-force-participation-rate)

No matter whether we look at the unemployment rate, at the employment rate in the industrial sector, or at the labor force participation rate for various population ages, the result is the same: no changes occurred from 2016 until 2019.

And this can mean only one thing: NPP and Nana Akufo-Addo were unsuccessful in creating new jobs. In particular, the “One District, One Factory” programme had absolutely no relevance for job creation, given that the employment rate in the industrial sector remained unchanged since 2016.

Whether NPP and Nana Akufo-Addo were unsuccessful in this endeavour because they are incompetent, or because they weren’t really interested in job creation, it’s not for us to decide. We only analyse the data. And the data tell one thing only: namely, that NPP and Nana Akufo-Addo failed to fulfil their promise to create jobs for Ghanaians.

EconomyGhanaLabour ForceNana Akufo-Addo

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