Editorial: Economic Recovery Must Reflect In Jobs

The Minister for Finance, Dr Cassiel Ato Forson, last week presented the 2026 Mid-Year Budget Review to Parliament with an optimistic message that Ghana’s economy is on a strong path to recovery. According to the Minister, the economy recorded a first-quarter GDP growth of 6.4 percent, inflation has declined to 5.3 percent, and there is no need for new taxes or a supplementary budget.

Government has attributed these gains to fiscal discipline, improved tax compliance, exchange rate stability and measures such as the establishment of the Ghana Gold Board to maximize the country’s mineral wealth.

Much as the government deserves the praise for the current status of the economy, it must, in our view, exercise restraint in celebrating these gains because there is another side of the economic story that cannot be ignored.

While the macroeconomic indicators may be encouraging, the reality confronting the ordinary Ghanaian youth should concern the government. The latest figures from the Ghana Statistical Service reveal that youth unemployment remains disturbingly high. Thousands of graduates continue to roam the streets with certificates in their hands, but without jobs to match their qualifications.

According to the GSS, unemployment among persons between the ages of 15 and 24 remains above 30 percent, while approximately 1.34 million young people are neither in education, employment nor training. More worrying is the fact that seven out of every ten unemployed persons in Ghana are below the age of 35.

These are not mere statistics -they represent shattered dreams, wasted talents and growing frustration among the country’s youthful population. A nation that neglects its youth does so at its own peril.

It is for this reason that we are cautioning against the excitement surrounding the improved economic figures. Economic recovery should not be measured only by GDP growth, inflation or exchange rate stability. It must also be reflected in the ability of citizens to secure decent and sustainable employment.

Successive governments have failed this country in the area of youth employment. Various programmes, including GYEEDA and NABCO, were introduced with much fanfare, but ultimately failed to provide lasting solutions. Many beneficiaries returned to the unemployment queue immediately after those programmes ended.
Today, many young people believe that political affiliation rather than competence is the surest route to employment.

That perception should worry every patriotic Ghanaian because it undermines meritocracy and weakens public confidence in state institutions.
The Chronicle has also observed a growing disconnect between Ghana’s educational system and the needs of the labour market.

Every year, universities produce thousands of graduates, yet the economy is unable to absorb them. We are not suggesting that government should stop expanding access to higher education, far from it. Our concern is that education must go hand in hand with deliberate job creation and industrial expansion.

The truth is that Ghana’s manufacturing sector remains too weak to absorb the growing number of graduates. Many local industries still depend heavily on imported raw materials, while businesses continue to battle high interest rates, expensive electricity, multiple taxes and regulatory bottlenecks. Under such conditions, expecting the private sector to become the engine of employment is easier said than done.

Government has consistently encouraged the youth to venture into entrepreneurship. While there is nothing wrong with that advice, entrepreneurship cannot flourish where access to capital remains a nightmare. Young entrepreneurs continue to face high lending rates, stringent collateral requirements and limited financing opportunities. Without affordable credit, entrepreneurship will remain an attractive slogan rather than a practical solution.

The Chronicle, therefore, urges President John Dramani Mahama and his economic management team to make youth employment the next major priority. Restoring macroeconomic stability is commendable, but that achievement will ring hollow if it does not translate into decent jobs for the millions of young Ghanaians who continue to struggle for survival.

At the end of the day, economic recovery is not about the figures announced on the floor of Parliament. It is about whether the ordinary Ghanaian can find work, earn a decent income and live with dignity. Until that happens, the celebration of economic recovery will remain incomplete.

 

For more news, join The Chronicle Newspaper channel on WhatsApp: https://whatsapp.com/channel/0029VbBSs55E50UqNPvSOm2z

The post Editorial: Economic Recovery Must Reflect In Jobs appeared first on The Ghanaian Chronicle.

Read Full Story