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Ghana’s informal sector accounts for approximately 80% of employment but provides just 27% of GDP, revealing a significant productivity disparity, as noted in the inaugural edition of the National Report on Productivity, Employment, and Growth published by the Ghana Statistical Service (GSS).
The report cautions that although the informal sector offers jobs for most workers, it is still afflicted by low productivity, underemployment, and stagnant wages, creating a major obstacle to economic growth.
The report indicates that between 1991 and 2019, labor productivity increased by an average of 3.2% each year, particularly in capital-heavy industries like mining and finance.
The manufacturing industry experienced a 14% rise in productivity from 2013 to 2022, while employment increased just 2.5% during that time, indicating sluggish industrial growth.
Likewise, the mining industry experienced significant productivity increases but minimal job growth, emphasizing Ghana’s dependence on sectors that fail to provide extensive employment options.
The report additionally shows an increasing disparity between productivity and wages. While industries like finance, insurance, and professional services have experienced higher wage growth, sectors such as household agriculture, trade, and repair services have shown minimal or flat wage increases despite advancements in productivity.
A breakdown by sector indicates that industries such as commercial agriculture, transportation, utilities, and manufacturing play a significant role in job creation and productivity improvements.
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