A GSS report reveals that Ghana’s labor productivity growth is moderate, with notable increases linked to oil extraction from 2010 to 2016. Growth has mainly benefited a few sectors, like mining, while others, such as agriculture and trade, face challenges with job losses. The report stresses the need for investment in key sectors to foster broader economic gains and address disparities between earnings and productivity.
A recent report from the Ghana Statistical Service (GSS) indicated that Ghana has achieved a moderate level of labor productivity growth, particularly between 2010 and 2016 during the onset of oil extraction. Ghana’s annual labor productivity surpasses the average for lower-middle-income countries but falls behind that of higher-middle-income nations.
Professor William Baah Boateng from the University of Ghana presented findings on “Productivity, Employment, and Growth” in Accra, emphasizing that although there was productivity growth, its benefits were largely confined to sectors like mining, limiting its impact across the broader economy.
Sectoral analysis reveals mixed trends, with productivity rises in household agriculture and trade coexisting with job losses as workers shift into lower-productivity roles in construction and urban services. The mining sector demonstrated high productivity gains but failed to create ample job opportunities, while sectors like commercial agriculture, manufacturing, transportation, and utilities achieved both productivity improvements and job creation.
The report advocates for greater investment in sub-sectors capable of fostering productivity, decent employment growth, and technological advancements. Key sectors identified for intensified investment included commercial agriculture, transportation, utilities, and manufacturing, which significantly contribute to economic growth and employment.
The report also noted that average earnings in Ghana have not kept pace with productivity growth, resulting in an increasing gap over time. Sub-sectors with higher earnings growth compared to productivity include utilities, construction, and tourism, whereas informal sectors like household agriculture and trade experienced slower earnings growth.
The GSS report highlights Ghana’s moderate labor productivity growth, emphasizing the concentration of that growth in specific sectors. While there are opportunities for investment and job creation in areas like commercial agriculture and utilities, challenges remain in addressing the widening gap between earnings and productivity. Overall, strategic focus is needed to enhance productivity across more sectors of the economy, ensuring equitable economic benefits.
Original Source: www.ghanabusinessnews.com
