By Godwin Owusu Frimpong
Ghana’s labour productivity growth has been uneven across different sectors of the economy, according to a new report by the Ghana Statistical Service (GSS). The National Report on Productivity, Employment, and Growth, covering 1991-2022, highlights productivity trends and their implications for economic development.
While Ghana’s labour productivity exceeds the average for lower-middle-income countries, it lags behind higher-middle-income nations. The GSS report reveals that the surge in productivity between 2010 and 2016, following the commencement of oil extraction, had a limited overall impact, as growth was concentrated in sectors like mining.
Sectoral analysis indicates that while household agriculture and trade saw productivity increases, they also experienced job losses. Conversely, commercial agriculture, manufacturing, transportation, and utilities demonstrated both productivity gains and job creation.
GSS Head Professor Samuel Kobina Annim said the report aims to present statistics in a policy-relevant manner, focusing on productivity, employment, and economic growth. He said labour productivity measures the efficiency of workers in producing goods and services, while total productivity assesses the combined efficiency of labour, capital, and materials.
The report emphasizes the need for investment in sub-sectors that can generate productivity, decent employment growth, and technological modernization. Key sectors identified for intensified investment include commercial agriculture, transportation and utilities, and manufacturing.
Earnings growth in Ghana has lagged behind productivity growth, particularly in informal sectors like household agriculture and trade. Sub-sectors with the highest earnings growth relative to productivity include utilities, construction, and tourism.
The GSS hopes the report will encourage discussion and inform decision-making among policymakers and businesses to improve efficiency, set performance targets, and identify opportunities for innovation and improvement.
Godwin Owusu Frimpong
