Ghana’s unemployment rate to remain at 4.0% in 2024, 2025 – Fitch Solutions

On January 11, 2024, 12:45 PM

Ghana’s unemployment rate is expected to remain flat at 4.0% in 2024 and 2025, Fitch Solutions has stated in its Employment Outlook.

This rate is the same as recorded in 2023.

According to the UK-based firm, the unemployment rate if accompanied by easing inflation, will see a rise in real wages for many households.

“Over 2024, we forecast unemployment to hold at 4.0%, and if accompanied by easing inflation, will see a rise in real wages for many households”.

The unemployment rate has been rising since 2017 and Fitch Solutions said it will continue on this path over the medium term and beyond.

“While this is a marginal increase that should not have much bearing on consumer incomes, the unemployment rate has been rising since 2017 and is expected to continue on this path over the medium term and beyond”.

It added that the size of the country’s labour force is reduced by low life expectancy at around 64.3 years of age, which is itself a result of the low level of government expenditure on healthcare and the prevalence of water-borne diseases and chronic illnesses such as HIV/AIDS.

It concluded that a shortage of highly skilled workers also means that employers have to import workers from abroad to fill the gaps in the domestic workforce.