HR Frontiers with Senyo M Adjabeng: Job creation in a high unemployment environment

Unemployment remains one of the most pressing economic and social challenges globally, particularly in developing economies like Ghana where job creation struggles to keep pace with population growth and technological disruptions.

High unemployment rates lead to reduced consumer spending, increased poverty, and social instability, making it imperative for governments, businesses, and policymakers to adopt sustainable job creation strategies.

In environments where unemployment is persistently high, traditional approaches to job creation often fall short.  Factors such as automation, globalization, and economic recessions further complicate efforts to generate sufficient employment opportunities.

However, by leveraging innovation, fostering entrepreneurship, and implementing targeted policies, economies can stimulate job growth even in the most challenging conditions.

This article explores the dynamics of job creation in high-unemployment environments, examining the role of government policies, private sector initiatives, education reforms, and technological advancements.  Drawing from global case studies and expert insights, we will outline actionable strategies to address unemployment and foster inclusive economic growth.

High unemployment is often a symptom of deeper structural issues within an economy.  But unconventionally of me, I intend to ask some hard questions about the structure of our educational systems and its contribution to the high unemployment situation in Ghana.

In countries with weak industrial bases or over reliance on a single sector such as oil or agriculture, economic shocks can lead to sudden job losses, leaving millions without viable employment options.

Persistent unemployment creates a vicious cycle,  as reduced household incomes lead to lower consumer demand, which in turn discourages business investment and further job cuts.  Long-term unemployment also erodes workers’ skills, making reintegration into the labor market increasingly difficult.

Ghana, like many developing nations, faces a paradox. Despite significant investments in education, unemployment remains persistently high, particularly among the youth.  While access to secondary and tertiary education has expanded over the years, structural mismatches between education outcomes and labour market demands contribute to joblessness.

Education Expansion and Unemployment Trends in Ghana

Ghana has made notable progress in improving education access.  The government’s Free Senior High School (SHS) policy, introduced in 2017, significantly increased secondary school enrolment (Ministry of Education, 2022).

Similarly, tertiary institutions have expanded, with over 200 accredited universities and colleges (National Accreditation Board, 2023).  Despite this, Ghana’s unemployment rate stood at 13.4% in 2023, with youth unemployment exceeding 32% (Ghana Statistical Service, 2023).  This disconnect suggests that education alone does not guarantee employment, rather, the quality, relevance, and alignment of education with labour market needs play a crucial role.

Ghana’s education system remains heavily theory-based, with limited emphasis on technical, vocational, and digital skills. Many graduates lack competencies required by employers, particularly in technical and vocational fields (e.g., construction, manufacturing, agribusiness), Digital and ICT-related jobs (e.g.,software development, data analysis) and Entrepreneurial and soft skills (e.g., problem-solving, teamwork)

A World Bank (2022) report found that only 18% of Ghanaian employers believe graduates possess job-ready skills, leading to prolonged job searches.  Tertiary institutions produce a high number of graduates in humanities, social sciences, and general business, while industries demand more STEM (Science, Technology, Engineering, Mathematics) and technical professionals.

This imbalance leads to graduates working in unrelated, low-paying jobs, working in jobs they are not passionate about and just to pay the bills.  There is also increased competition for limited formal-sector jobs and high levels of brain drain, as skilled workers migrate for better opportunities.  An example is the exodus of health workers from Ghana in droves in recent years.

While access to secondary and tertiary education has expanded over the years, structural mismatches between education outcomes and labour market demands contribute to joblessness.

Unlike countries such as Germany and South Korea, where apprenticeships and industry partnerships ensure smooth school-to-work transitions, Ghana’s education system operates in isolation from employers. There is very limited internship and apprenticeship opportunities, outdated curricula which is not aligned with modern industry needs and inadequate career guidance, leaving students unaware of high-demand fields.

Many Ghanaian graduates aspire to white-collar government or corporate jobs, but the formal sector creates fewer than 10% of new jobs annually (Ghana Employers’ Association, 2023).  The majority of employment comes from the informal sector e.g., petty trading, subsistence farming, and self-employment and micro-enterprises often lacking stability.  This mismatch leads to frustration, as educated youth reject available opportunities in favour of elusive formal jobs.

While Ghana’s expansion of secondary and tertiary education is commendable, without structural reforms, it risks exacerbating unemployment.  The key lies in aligning education with labour market needs, prioritizing technical skills, digital literacy, and entrepreneurship.  By fostering stronger industry-education partnerships and diversifying economic opportunities, Ghana can transform its educated youth from job seekers into job creators.

Governments play a crucial role in stimulating job creation through fiscal policies, labour market reforms, and public investment.  Investing in infrastructure, such as roads, bridges, and digital networks creates immediate employment in construction while laying the foundation for long-term economic growth.

A study by the World Bank (2022) found that every $1 million invested in infrastructure generates between 10 to 20 direct and indirect jobs, depending on the sector.  SMEs account for over 60% of employment in emerging economies (OECD, 2021).  Governments can boost job creation by providing access to credit, reducing bureaucratic hurdles, and offering tax incentives for small businesses.  For example, Rwanda’s SME growth initiatives helped reduce unemployment from 16% in 2017 to 13% in 2022 (World Bank, 2023).

Flexible labour laws that balance worker protections with business needs can encourage more hiring.  Countries like Germany have implemented “Kurzarbeit” (short-time work) programs, where the government subsidises wages during economic downturns to prevent layoffs (IMF, 2020).

Such policies help maintain employment levels during crises.  Government policies are also tilting steadily towards green and sustainable jobs globally.  The transition to a green economy therefore presents significant job creation opportunities.  Renewable energy projects, reforestation programs, and sustainable agriculture can generate millions of jobs. The International Renewable Energy Agency (IRENA) estimates that renewable energy employment could reach 38 million by 2030 (IRENA, 2023).

The Role of the Private Sector

While government policies set the stage, the private sector is the primary engine of job creation.  Businesses can contribute to employment growth through many diverse profit led interventions.  Companies that invest in new markets, technologies, and workforce training create more jobs.  For instance, Nigeria’s Dangote Group has generated thousands of jobs through its industrial projects in cement, agriculture, and oil refining (Financial Times, 2023).  Startups drive innovation and employment.

Silicon Valley’s tech ecosystem, for example, has created millions of direct and indirect jobs.  Emerging markets can replicate this by fostering venture capital funding and incubator programs.  Collaborations between governments and businesses can accelerate job creation.  India’s Skill India Mission, a partnership with private firms, has trained over 30 million workers since 2015, improving employability (Government of India, 2023).

A mismatch between workforce skills and employer needs exacerbates unemployment.  To bridge this gap, countries like Germany and Switzerland have robust apprenticeship programs that prepare youth for skilled trades.  Expanding vocational training in high-unemployment regions can reduce joblessness.  With the rise of AI and automation, digital skills are essential.

Governments and corporations must invest in reskilling programs to prepare workers for tech-driven jobs.  Continuous learning ensures workers remain competitive. Online platforms like Coursera and Udemy offer accessible up-skilling opportunities, particularly in developing nations.  While automation displaces certain jobs, it also creates new opportunities.

The World Economic Forum (WEF) predicts that by 2025, technology will generate 97 million new roles, offsetting 85 million displaced jobs (WEF, 2023).  Key areas of growth as identified .  In AI and Data Science, a demand for AI specialists is surging.  Online marketplaces create jobs in logistics, marketing, and customer service.

Platforms like Uber and Upwork offer flexible employment in the gig economy.  Policymakers must ensure workers are equipped for these shifts through education and social safety nets.

Job creation in a high-unemployment environment requires a multi-faceted approach involving government intervention, private sector engagement, education reform, and technological adaptation.

While challenges persist, countries that invest in infrastructure, support SMEs, and prioritize skills development can unlock sustainable employment growth.  The path forward demands collaboration between policymakers, businesses, and educational institutions.  By fostering an environment where innovation thrives and workers are empowered with relevant skills, Ghana can turn the tide against unemployment and build a more inclusive future.

For Further Reading:

• International Labour Organization (ILO). (2023). World Employment and Social Outlook Trends.
• World Bank. (2022). Infrastructure and Jobs: A Global Perspective.
• (2021). SMEs and Employment in Emerging Economies.
• (2020). Labor Market Policies in Times of Crisis.
• World Economic Forum (WEF). (2023). The Future of Jobs Report.

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