At the Ghana National Chamber of Commerce and Industry Mid-Year Budget Review Seminar in Accra, Professor Godfred Alufar Bokpin, an economist, cautioned that Ghana's macroeconomic stability gains must translate into jobs to be meaningful. While the government has made progress in reducing inflation, improving fiscal discipline, and restoring debt sustainability, the country's economic framework continues to emphasize indicators over employment creation.
Macroeconomic Stability Falls Short of Job Creation
Prof. Bokpin stressed that macroeconomic stability should be viewed as a means to achieving transformation rather than an end in itself. "We have a target for inflation, we have a target for growth, we have a target for fiscal balance, but there is no nationally determined target for employment generation in the budget," he said. This lack of focus on employment creation has led to a situation where livelihoods and jobs are not improving despite stability gains.
Labour Market Statistics Paint a Grim Picture
Labour market statistics indicate unemployment at 13.0 per cent in the third quarter of 2025, with youth unemployment at 32.4 per cent. Nearly two million persons aged 15 to 35 years were not in employment, education, or training. Prof. Bokpin noted that about 500,000 people enter the labour market annually, warning that job creation was insufficient to absorb the growing workforce.
Call for Targeted Interventions
Prof. Bokpin called for targeted interventions to improve outcomes for women and young graduates. He urged the government to introduce measurable employment targets into national budgets, directing resources into agriculture, industry, and services. "It is in the real sector that jobs are created. It is in the real sector that income is generated. The fiscal and monetary sectors must complement each other to make the real sector the winner," he said.
Austerity Must Be Balanced with Investment
Prof. Bokpin also cautioned against excessive austerity amid infrastructure deficits, urging balance between consolidation and investment in roads, water systems, education, and healthcare. "We cannot celebrate austerity in the midst of huge infrastructure deficits," he said. This warning comes as the government reports gains from fiscal consolidation, reduced borrowing, and debt sustainability reforms under the IMF programme.
Recommendations for a Job-Rich Growth Strategy
Prof. Bokpin called on the Ghana Statistical Service to publish regular employment statistics and urged policymakers to adopt a job-rich growth strategy. He emphasized the need for the government to prioritize employment creation and ensure that the benefits of stability gains are shared by all. With Ghana's economic framework still prioritizing indicators over employment creation, it remains to be seen whether the government will heed Prof. Bokpin's call for a job-rich growth strategy.
Source: Joy Online
