The World Bank has identified weak labour demand in Ghana’s productive sectors as one of the major challenge to job creation, warning that it continues to limit economic opportunities for many workers.

In its latest Ghana Economic Update launched in Accra, the World Bank noted that high-quality job creation in higher productivity sectors such as manufacturing and services remain constrained.

As a result, many workers are being pushed into lower productivity sectors and accepting low-quality jobs, leading to a shortage of mid-level employment opportunities.

According to the report, Ghana has experienced minimal structural transformation over the past decade, with agriculture still employing a significant share of the workforce.

However, the bank stressed that the agricultural sector often fails to offer the productivity and income growth needed to lift workers into more sustainable livelihoods.

The World Bank pointed to several factors slowing private sector growth and its potential for job creation. These include regulatory inefficiencies, trade barriers, and inadequate infrastructure — all of which continue to limit investment in sectors that could absorb more skilled labour.

The report called for targeted reforms to improve the business environment, strengthen infrastructure, and promote value addition in agriculture and industry. Such measures, the World Bank said, would help stimulate demand for labour in productive sectors and create better-quality employment opportunities.