By Ghana News
Copyright ghanamma
The World Bank has warned that Ghana risks worsening its socioeconomic challenges if it does not take pragmatic steps to expand productive job opportunities for its growing labour force.
In its 2025 policy notes, the Bretton Woods institution stated that although public sector jobs remain attractive to job seekers due to wage premiums, the sector can only absorb a limited fraction of the labour force.
The bank underscored the scale of the challenge, noting that about 500,000 youth enter the labour market annually, with nearly seven million expected to join by 2030.
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“Despite slower but continued increases in GDP per capita, poverty reduction paused after 2012. Between 2012 and 2016, poverty at the national absolute poverty line dropped only slightly from 24.2% to 23.4%, as growth ceased to be pro-poor. Consumption for the bottom 40% of the population stagnated, with the bottom 10% experiencing a 5% decline,” the report stated.
According to the World Bank, the growth elasticity of poverty has weakened significantly, driven by limited job opportunities in high-productivity sectors and a capital-intensive industrialisation model that has curtailed incentives for households to invest in education and skills.
The World Bank stressed that the government must focus on medium-term strategies that deliver early wins to build consensus around reforms.
Otherwise, it added, Ghana’s current socioeconomic pressures could threaten social cohesion, especially given its youthful demographic.
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