Ghana’s rapidly expanding youth population presents a major opportunity for long-term economic growth, but only if the country can create enough jobs to absorb new entrants into the labour market, the World Bank has cautioned in its 9th Economic Update for Ghana titled Addressing Labour Market Challenges and Opportunities in Ghana’s Economic Landscape.
The Bank projects that Ghana’s working-age population will grow sharply over the next decade. This demographic surge could be a powerful driver of development if it is matched with productive employment opportunities.
“A key focus should be on youth and their transition from school to work, ensuring they have the skills needed for a modern economy to provide strong employment opportunities, essential for realising the demographic dividend,” said Kwabena Gyan Kwakye, Economist and lead author of the report.
Job Transitions and Priority Sectors
The World Bank emphasises that job-to-job transitions are also critical, allowing workers to move into more productive and sustainable forms of employment.
Agriculture remains a priority sector for such improvements. The report highlights agro-processing value chains and out-grower schemes as potential pathways to boost productivity, resilience, and rural job creation.
Economic Performance and Challenges
Ghana’s economy demonstrated resilience in 2024, recording 5.7% growth, and continued to expand by 5.3% in the first quarter of 2025.
Despite these gains, the World Bank warns that growth remains under pressure from persistent inflation, high interest rates, and fiscal challenges that have undermined earlier stabilisation efforts.
“Entrenching fiscal discipline, strengthening public financial management, and carefully managing inflation and exchange rate volatility will be key,” said Robert Taliercio, World Bank Country Director for Ghana, Liberia, and Sierra Leone.
Recommendations for Harnessing the Demographic Dividend
To harness the demographic dividend, the Bank calls for urgent reforms to:
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Improve the business environment and remove barriers to private sector expansion.
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Close infrastructure gaps in transport, energy, and irrigation.
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Accelerate human capital investments, particularly in education and workforce skills.
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Develop targeted youth skills programmes linked to labour market needs.
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Implement a comprehensive job creation strategy tied to structural transformation.
Policy Priorities for Ghana
The World Bank identifies three key policy avenues to unlock growth and create jobs:
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Building Physical and Human Capital – Infrastructure and education investments to strengthen productivity and workforce readiness.
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Improving the Enabling Environment – Removing inefficiencies such as land registry constraints, insolvency processes, and barriers to finance.
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Mobilising Private Capital – Expanding financial access, encouraging entrepreneurship, and reducing political and investment risks.
The World Bank concludes that without decisive action, Ghana risks missing the opportunity to turn its growing youth population into a powerful engine of economic transformation. Creating jobs, building skills, and driving reforms will be essential for realising the demographic dividend.
