The first edition of the National Report on Productivity, Employment, and Growth, released by the Ghana Statistical Service (GSS), has revealed that the informal sector employs nearly 80% of the workforce.
However, only 27% of that figure contributes to the GDP, which the GSS states exposes a major productivity gap.
The report discovered that the informal sector remains plagued by low productivity, underemployment, and stagnant wages, posing a significant challenge to economic growth.
Labour productivity grew by an average of 3.2% annually between 1991 and 2019, with key gains concentrated in capital-intensive sectors such as mining and finance.
The manufacturing sector recorded a 14% productivity increase between 2013 and 2022, yet employment grew by only 2.5% in the same period, reflecting slow industrial expansion.
For mining, the report said the sector recorded high productivity growth but little job creation. The report also reveals a widening gap between productivity and wages.
Despite gains in productivity, businesses including home agriculture, trade, and repair services have witnessed moderate or flat wage rises, while sectors like professional services, insurance, and finance have seen faster wage growth.
The report added that commercial agriculture, transportation, utilities, and manufacturing are among the industries contributing to both job creation and productivity gains.
As part of the recommendations, the report suggested greater investment in industrialization, expansion of commercial agriculture, and policies to integrate informal businesses into the formal economy.
It also underscored the need for technology adoption, workforce upskilling, and targeted fiscal measures to boost productivity.
By: Rainbowradioonline.com/Ghana
