10 Causes Of Unemployment In Ghana


Unemployment in Ghana is getting higher with time. The majority of graduates are unemployed after completing university education. In this article, we’ll look at ten reasons for unemployment in Ghana, effect on the economy and how to address them.

Unemployment, on the other hand, is a state in which people who are employable and actively seeking for job are unable to find one.

Below are some of the general causes of Unemployment in Ghana;

1. Skills mismatch

The skills mismatch is a major source of youth unemployment that affects individuals all around the world. Millions of young people are out of school and looking for jobs, yet businesses require skills that these young people lack. Young people have a tough transition from education to employment, and businesses struggle to find qualified candidates for open positions.

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Causes Of Unemployment In Ghana

2. Lack of access to capital

Young individuals who desire to establish their own enterprises sometimes have difficulty obtaining loans. Part of this is also due to a lack of collateral. Young people however find it difficult to repay their debts on time due to high interest rates.

3. Lack of entrepreneurship and life-skills education

Lack of education in how to harness life-skills most students already have, weak links between the private sector and schools to encourage training and job experience. Also, lack of vocational, entrepreneurial, and employable training skills in favor of more conventional academics.

4.  Financial crisis

Temporary jobs, part-time work, zero-hour contracts, and other precarious employment opportunities are sometimes the only means by which young people may make money or get experience these days.

5. There is a digital gap

The skills gap in Ghana is exacerbated by a lack of access to technology and the internet. If schools cannot afford the resources necessary to teach students in the digital economy, these students will be at a disadvantage in the employment market.

6. Geographical immobility

It is a term used to describe the inability to move from one place to another. This however relates to the difficulties of relocating to a new place in order to find work; for example, while there may be opportunities in Tamale, finding acceptable housing or schools for ones children may be tough.

7. Unemployment due to one’s own choice

This occurs when people opt to stay jobless rather than accept offered positions. If benefits are generous, for example, people may decide to stay on benefits rather than work.

8. Corruption and misappropriation of money

This have also played a significant role in the high percentage of young unemployment. Some of our authorities aren’t entirely trustworthy. They benefit personally from public monies. Funds intended for growth in a variety of economic areas wind up in their pockets. With this pattern, we will never be able to progress as quickly as we would like.

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Causes Of Unemployment In Ghana

9. White collar work attitude

One of the causes of graduate unemployment in Ghana is the white collar work attitude. Graduates are conditioned to believe that getting formal job in a reputable organization is the key to achieving success in life. As a result, they are keen to compete for the few open positions that the firms have to give. However, since the quantity of graduates far outnumbers the number of job openings leading to high rate of unemployment in the country.

10. Lack of professional skill

Ghana’s educational system focuses on theory rather than providing important practical and professional abilities required in the job market.

What are the effects of unemployment in Ghana?

In Ghana, the effects of young unemployment have been felt. Things are rapidly growing, judging by the political upheaval and growth in social problems. When individuals are out of work for an extended period of time, they tend to lose trust in governments and democratic norms.

People frequently demonstrate and organize strikes in order to demand employment, opportunities, or even the elimination of corruption and financial mismanagement. 

As a result of such activities, the country is steadily becoming more political unstable and tense. Lack of work prospects also breeds robbery, prostitution, and bribery, among other vices. People will seek money in whatever way they can, and as a result, the crime rate will climb in tandem with the unemployment rate. As a result, our country is in disarray, and social security is in jeopardy.

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10 Causes Of Unemployment In Ghana

Solutions for youth unemployment

1. Education and training programmes

Initiatives or extracurricular teaching aimed at closing the skills gap can include a wide range of topics. Including employable skills, job seeking and interviewing, entrepreneurship, and vocational education.

2. Universal internet access and more affordable technology

Infrastructure development, on the other hand, is clearly critical to achieving this aim. We need to grow these industries as a middle-income country, and the digital divide will continue to be bridged.

3. Access to capital for young people

Young individuals who want to support their businesses don’t have to rely solely on banks. Site for loan must be created in other for them to build heir enterprise and also increase their incomes. However, with such programmes will become more brighter for aspiring young entrepreneurs.

Source: Xorlali.com


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