Ghana achieves moderate level of labour productivity growth
The Ghana Statistical Service (GSS) report indicated that Ghana has achieved a moderate level of labour 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.
A closer look at sectoral trends reveals significant variations in the report.
It said while productivity had increased in areas such as household agriculture and trade, these sectors also saw job losses, as workers move 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 modernisation.
The report highlighted the key sectors requiring intensified investments in labour and capital due to their contribution to both economic growth and employment creation over the period.
They included commercial agriculture, transportation and utilities, and manufacturing.
The findings further revealed that average earnings in Ghana had increased at a slower pace than productivity growth, and the gap was widening over time.
Sub-sectors with the highest earnings growth relative to productivity include utilities, construction, and tourism.
The report revealed that earnings growth had been slower relative to productivity in the more informal sectors, such as household agriculture and trade and repair services.
Professor Samuel Kobina Annim, the Government Statistician said, “We are gathered here in pursuance of the new focus that we have adopted as a service.
“And this new focus has to do with not presenting statistical outputs but presenting statistics in a manner that is policy relevant.”
He said, “Labour productivity measures how efficiently workers produce goods and services over a specific period.
“Total productivity measures how efficiently multiple inputs, like labour, capital, and materials, are used together to produce output and drive growth.”
Dr Nii Moi Thompson, Chairman, of the National Development Planning Commission, commended GSS for producing current quality data over the past few years.
He said the citizens must work efficiently in the utilisation of the natural resources, adding that without efficiency productivity would be low.
Dr Thompson said the Commission’s research agenda was to reconceptualise output, employment and earnings growths to create jobs for the country.
Watch the latest episode of Health Focus below