Over one million Ghanaians have lost their jobs since 2017, a study by the Centre for Socioeconomic Studies (CSS) shows.
According to the study, the job cuts span the country’s industrial, banking, and mining sectors. It also covers the media and services sectors.
“The socioeconomic impact of these significant job losses on the general economy implies that well over three million livelihoods have been adversely affected given that one job loser can be said to have two dependants, though the empirics could mean worse,” a research fellow at the Centre, Albert Wotorgbui said.
He warned that the Ghana government’s revenue target cannot be met following the massive job losses.
Disastrous phenomenon
The report says several jobs have been lost just within two years under President Akufo Addo. The latest is in the country’s brewery sector where over 1500 workers lost their jobs earlier this week.
Mr Wotorgbui said: “The status quo has disastrous social implications for crime and security.”
“As the legitimate expectations from expected long-term stable employment rapidly fades away, the level of frustration of the individuals increases,” he added.
What needs to be done?
The Centre asked President Akufo-Addo to ensure that the government’s spending adequately responds to sustainable job creation.
He said that was necessary “given the low levels of investment in productive capacity evidenced in the high recruitment expenditure trends against significantly low capital expenditure.”
The Government, the Centre further asked should reconsider its approach in the financial sector crisis management.
It wants the government to adopt a “Stakeholder Approach” that effectively meets the needs of potential job losers, shareholders or investors in indigenous and rural banks as well as the interests of depositors.
The group also requested the government to review tax thresholds downwards in the 2019 budget. This it says will mitigate the hikes in prices due to excessive taxes.
Meanwhile Ghana’s President on Wednesday commissioned the first batch of 100,000 youth benefiting from a program to secure them jobs.
The program will cost over $600 million to execute. Young people who are jobless are to be trained in various professions in order for them to gain employment after graduating.
Source: Africafeeds.com
