A research analyst a the Ministry of Finance, Dr Osei Oteng-Asante, has observed that the country’s growth pattern is largely driven by sectors that are capital-intensive and heavily mechanised, thereby limiting their capacity to absorb large numbers of workers.
He explained that despite improving economic growth projections, the state continues to face a persistent challenge where economic expansion does not translate into sufficient job creation.
Dr. Osei-Asante made the observation during a capacity-building workshop for members of the Parliamentary Press Corps (PPC) in Koforidua organised under the auspices of the Parliament of Ghana with support from the World Bank and the Foreign, Commonwealth & Development Office (FCDO) of the United Kingdom.
“You may see growth, but the sectors that are driving the growth are not providing many employment opportunities because they are highly mechanised,” he explained.
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According to him, a major driver of Ghana’s growth is the extractive sector, besides the services sector, particularly gold mining.
Dr Oteng-Asante said recent reforms aimed at improving monitoring and tracking of mineral production have contributed to stronger growth projections in the industry.
But like many extractive industries worldwide, mining operations rely heavily on advanced equipment and technology.
“These industries depend more on machinery and technology than labour, so even when output increases, employment growth may remain limited,” he said.
According to Dr Oteng-Asante, Ghana’s economic projections show the services sector remaining the strongest performer, with growth expected to surpass other sectors over the medium term.
The sector’s expansion is being driven largely by financial and insurance activities, including digital financial services.
Mobile money and fintech innovations, he said, have also transformed financial transactions and increased economic activity.
“The services sector has been growing faster than any other sector over the past decade, and we expect it to continue dominating the economy,” he noted.
However, he explained that while the sector contributes significantly to GDP, it also does not necessarily create large-scale employment opportunities.
He explained that manufacturing is traditionally the sector that generates large numbers of jobs, particularly in developing economies. However, Ghana’s current growth pattern shows manufacturing expanding at a slower pace compared to services and mining.
This means the sectors most capable of employing large numbers of people are not currently the main drivers of economic expansion.
Dr Oteng-Asante stressed, however, that economic growth alone is not enough to create jobs unless policies are designed to stimulate labour-intensive industries.
He cited regulatory reforms in sectors such as education and trade as examples of how government policy can unlock investment and employment opportunities.
“Sometimes it is not just about government spending. Removing regulatory bottlenecks can also stimulate investment and create jobs,” he said.
He pointed to the liberalisation of tertiary education as a policy change that has enabled private investment and expanded employment opportunities within the sector.
The workshop aimed to equip members of the Parliamentary Press Corps with the skills to interpret budget documents, fiscal frameworks and macroeconomic projections.
Participants were encouraged to analyse data trends in government budget appendices to better understand economic performance and policy outcomes.
Dr Oteng-Asante noted that deeper scrutiny of economic data can reveal important policy questions, including the link between growth and employment.