Ghana’s Labor Productivity Improves

February 26, 2025

(3 Minutes Read)

The overall impact on total productivity had been limited, as growth was concentrated in a few sectors, such as mining, rather than spreading across the broader economy.

The Ghana Statistical Service (GSS) report indicated that Ghana has achieved a moderate level of labor productivity growth, with accelerated growth between 2010 and 2016 following the beginning of the extraction of oil.

The country recorded annual labour productivity that is higher than the average for lower–middle-income countries but lower than that of a higher-middle-income country. Professor William Baah Boateng from the University of Ghana presented the findings of the report on the topic “Productivity, Employment and Growth” in Accra.

The report was conducted in collaboration with the GSS, with support from the International Labour Organisation and other development partners. The report showed that the overall impact on total productivity had been limited, as growth was concentrated in a few sectors, such as mining, rather than spreading across the broader economy.

The report said while productivity had increased in areas such as household agriculture and trade, these sectors also saw job losses, as workers moved into lower-productivity roles in construction and urban services. The mining sector has achieved high productivity growth but has not generated substantial job opportunities.

In contrast, commercial agriculture, manufacturing, transportation, and utilities have recorded both productivity gains and job creation. The report therefore highlighted the need for investment in other sub-sectors that could generate productivity, decent employment growth, and technological modernization.