World Economic Forum Identifies Unemployment as Major Risk to Ghana's GDP
Ghana’s unemployment rate is skyrocketing, with significant increases in the last few quarters. In the third quarter of 2023, 1.85 million Ghanaians were reported as unemployed by the Ghana Statistical Service. The silence of the President concerning this issue during the 2024 State of the Nation Address (SONA) has only fuelled concerns. What’s more alarming is that the World Economic Forum’s 2024 Global Risk Report now lists unemployment as the highest risk factor in Ghana.
This report examines the probability of events or conditions that could negatively impact global or country-specific GDP, population or natural resources. Taking a look at the cases of the economic, environmental, geopolitical, societal and technological risk areas with 34 risk factors, one can see that a structural deterioration of work prospects or standards of work remains a severe problem. This deterioration ranges from the erosion of workers’ rights to stagnating wages, increasing unemployment and underemployment, displacement due to automation or the green transition, and stagnant social mobility. Public debt, inflation, cyber-crime and cyber insecurity, and economic downturn occupy the second, third, fourth and fifth slots as risk factors respectively.
The need to address this unemployment crisis cannot be overstated. Solutions must be found and implemented swiftly to prevent further deterioration in Ghana’s economic situation.
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