Ghana’s much-talked-about “demographic dividend” is gradually becoming a demographic burden, as a significant portion do not have the requisite skills to be engaged in the labor market.
Labour Economist, Prof. Baah Boateng, revealed that yet to be published Ghana Statistical Service data reveals that just 2.3% of the country’s working-age population has vocational or technical skill training.
Without urgent investment in skills development, the economist says the country risks wasting its youthful population, leaving millions of young Ghanaians unable to compete in today’s labor market, hence missing out on the demographic dividends of the country.
A demographic dividend is the economic boost a country gets when it has more working-age people (young adults and adults) than dependents (children and the elderly).
Despite the high youthful population, the reality is staggering. Many young graduates flood the job market annually with degrees but little practical training, while industries complain of shortages in skilled technicians, artisans, and problem-solvers.
From electricians to welders, tilers to machine operators, demand far outstrips supply, forcing companies to import skilled labor or operate below capacity.
“The dividends will be harnessed a bit more than what we are having if we improve on the skills of young people. Because if you don’t have the skills, you are useless in the labour market,” he indicated.
He added that, “Skill development is something that, as a country or as a continent, we have to look at it holistically. If you look at the data now, if you take the working age population in Ghana, as of 2024, from the Ghana Statistical Service, only 2.3% of the working age population have vocational and technical education.
This situation, the economist says, is not only widening Ghana’s unemployment challenge but also slowing national development. With fewer skilled workers, infrastructure projects take longer, productivity in manufacturing drags, and the informal sector remains locked in low-value activities.
Prof. Baah Boateng says the time is now for the country to prioritize vocational and technical training, which could transform the economy by creating jobs, boosting industrialization, and raising incomes.
“To be able to get them to be more useful in the labour market, we have to turn a bit more into skill development,” he recommended.
The labour economist wants Ghana to learn from countries like Germany and South Korea that invested heavily in technical education in times, and today are reaping the benefits of highly skilled workforces powering robust economies.
