Over the past decade, the Service sector has cemented its position as the largest contributor to Ghana’s economy, rising from 42.7% of GDP in 2013 to a projected 47.0% in 2024. This growth has outpaced both the Agriculture and Industry sectors, reflecting the country’s shift toward a more service-driven economy. However, a critical question remains, has this expansion translated into stable employment, particularly for the country’s growing unemployed youth?
A closer look at the sector’s structure according to the latest data from Ghana Statistical Service, reveals that much of its growth has been driven by informal jobs. While formal industries like finance, telecommunications, and professional services have expanded, they require specialized skills that many young job seekers lack.
As a result, most of the youth find themselves in low-paying, gig-based, or informal work such as retail trading, ride-hailing, mobile money operations, and hospitality services. These jobs, though offering some level of employment, come with limited social protection, no job security, and little room for career progression.
Meanwhile, the Agriculture sector, which once absorbed a significant portion of Ghana’s workforce, has seen fluctuations in its GDP share, declining from 21.4% through the periods and now a little up at 22.2% in 2024.
Despite a recent rebound, agriculture remains largely subsistence-based, with many young people turning away from the sector due to low wages, limited mechanization, and unpredictable climatic conditions. Although the government has introduced initiatives to modernize agriculture, it is yet to make the sector attractive enough to absorb large numbers of unemployed youth.
The Industry sector, which includes manufacturing, construction, and extractive industries, has also faced challenges. After reaching a high of 37.3% in 2014, its share of GDP has declined to 30.8% in 2024.
While industrialization efforts have been promoted, high production costs, policy inconsistencies, and limited access to capital have hindered its ability to expand and create sustainable jobs. The lack of large-scale manufacturing has further reduced employment opportunities for both skilled and unskilled youth.
The data suggests that while services dominate Ghana’s GDP, the challenge lies in job quality rather than quantity. The industry sector, which could have provided stable, well-paying jobs, has struggled to grow consistently. Agriculture, though essential, is not drawing enough youth due to its perceived low profitability.
