Ghana’s economic growth is being hindered by a significant skills gap, with 74% of the workforce having no education beyond Junior High School (JHS), according to labour economist Prof. William Baah-Boateng. Speaking at the launch of the Productivity, Employment, and Growth Report on February 24, 2025, he highlighted that 20% of Ghana’s workers have no formal education, while 54% have only completed JHS.
He described this as a major structural issue limiting productivity, making it difficult for the country to compete globally or implement policies like a 24-hour economy. Ghana’s labour productivity currently averages $6 per hour, compared to $70 in the United States—a gap too wide for sustainable economic progress.
The report revealed that despite an average annual productivity growth of 3.2% from 1991 to 2019, most workers remain in low-productivity sectors like informal urban services and household agriculture. While the mining sector recorded the highest productivity growth at 21.7%, it has not translated into significant job creation.
Additionally, wages are not keeping pace with productivity growth, particularly in the informal sector, where most Ghanaians are employed. Prof. Baah-Boateng urged the government to invest in education and skills training, especially for the youth, where unemployment stands at 29.6%. He also called for a focus on high-productivity sectors like manufacturing and commercial agriculture to boost job creation and wages.
