Ghana's informal sector accounts for 75% of the workforce – UNDP report

The 2023 Ghana Human Development Report, released by the United Nations Development Programme (UNDP) in collaboration with the Ghana Statistical Service (GSS) and the National Development Planning Commission (NDPC), has revealed that the informal sector accounts for a whopping 75% of Ghana's total workforce.

According to the report, youth unemployment remains alarmingly high, with 65% of young people aged 15-24 experiencing joblessness, underscoring a pressing challenge for the nation's future development.

The informal sector has maintained its dominance in Ghana's labour market since post-independence, employing a significant 75% of the country's workforce.

However, the sector often provides unstable and low-income jobs, making it a major contributor to widespread underemployment.

To this end, the 2023 Ghana Human Development Report, released by UNDP in collaboration with the GSS and the NDPC, proposed a raft of interventions to stem the tide.

According to the report, addressing these issues is crucial for Ghana's long-term development goals, demanding the urgent need for strategic investments in human capital, technology, and digital infrastructure to foster sustainable job creation and inclusive economic growth.

The report, themed "The Future Value of Work in Ghana: Pathways to Sustainable Jobs," advocates for a holistic approach to bridge the gap between current employment opportunities and the evolving job market.

It further called for reforms in education to include STEM/STEAM education and entrepreneurial training, equipping the youth with skills essential for future employment.

The report again recommends collaborative efforts from the government, private sector, civil society, and individuals alike.

By prioritizing a national consensus on long-term development plans as Ghana approaches key milestones such as the Sustainable Development Goals (SDGs) by 2030 and its centenary of independence in 2057, it aims to ensure that every citizen enjoys the benefits of decent work and improved living standards.