A US-based Ghanaian economist has warned that Ghana’s labour market faces deep structural weaknesses that cannot be ignored.

According to Dennis Nsafoah, an Assistant Professor of Economics at Niagara University, one of the biggest challenges confronting policymakers is the lack of sufficiently reliable and timely labour market data to design effective employment policies.

Outlining the topic “Ghana’s Jobs-First Conversation Is Long Overdue — But the Bank of Ghana Must Remain Focused on Price Stability”, he said policymakers in most cases simply do not have a complete picture of the true state of employment, underemployment, wages, productivity, and labour force dynamics in the economy.

He commended that National Development Planning Commission (NDPC) for placing the labour market at the center of the development conversation.

The Chairman of the National Development Planning Commission (NDPC), Dr. Nii Moi Thompson, recently advocated a “jobs-first” policy approach, sparking an important national conversation about the future direction of Ghana’s economic policy framework.

Dr. Nsafoah said this conversation is both timely and necessary.

“For too long, discussions about macroeconomic performance in Ghana have centered almost exclusively on inflation, exchange rates, fiscal deficits, and GDP [Gross Domestic Product] growth while paying insufficient attention to the structure and quality of employment in the economy. For the average Ghanaian household, however, the true measure of economic progress is not merely whether inflation has declined, or GDP has expanded, but whether meaningful and sustainable jobs are being created”.

Beyond the data challenges, Dr. Nsafoah said a significant share of employment in Ghana remains concentrated in the informal sector, where productivity is generally low, incomes are unstable, and workers often lack adequate social protection. “Many young graduates continue to struggle to transition into productive employment, while underemployment remains widespread even among those considered statistically employed.

According to him, this has created a disconnect between economic growth and improvements in living standards, caution that Ghana may record respectable GDP growth rates while many households continue to experience weak job opportunities and stagnant incomes.

The implications, he said are significant and it includes lower household income growth, reduced domestic demand, rising inequality, declining confidence among the youth and increasing pressure for migration.

He stated that a jobs-first policy framework therefore has the potential to improve both economic inclusion and long-term growth sustainability.

Why a Jobs-First Policy Could Benefit Ghana

Dr. Nsafoah is optimistic that a properly designed jobs-first policy framework could strengthen Ghana’s economy through several important channels.

First, he alluded that a stronger employment growth increases household incomes and purchasing power, which supports domestic demand and private sector expansion.

Second, he mentioned policies focused on skills development, industrialisation, and productivity improvements that can enhance the quality and efficiency of the labour force.

Third, he said a stronger labour market broadens the tax base, improves fiscal sustainability, and reduces pressure on government support programs.

Importantly, he pointed out that better labour market outcomes can also improve social stability and economic resilience, particularly among the youth.