There is no doubt that graduate unemployment and unemployment in general are major concerns for governments and policymakers in all jurisdictions.
Unemployment has been described as a national security threat because if people are jobless, they could pick up arms and other offensive weapons and engage in all manner of criminal activities, including armed robbery, commercial sex work, illegal small-scale mining and many more.
In fact, the Commander-in-Chief of the Ghana Armed Forces, President John Dramani Mahama, is on record as having warned that unskilled youth are at risk of being exploited by criminal elements. He said we had many young people ready to be hired by bad actors—drug traffickers, terrorists and other criminals.
There are concerns that universities continue to churn out graduates in disciplines that do not match existing labour market demands, thereby exacerbating unemployment. As a result, unemployment has become a major concern for all stakeholders.
Statistics
Although the July 2025 edition of the Quarterly Labour Statistics by the Ghana Statistical Service (GSS) revealed a marginal decline in the national unemployment rate, unemployment is still a major concern.
According to the GSS, data collected from over 9,000 households across the country showed that Ghana’s unemployment rate fell from 13.3% in the third quarter of 2024 to 13.1% in the fourth quarter of 2024.
This modest decline signalled progress but revealed persistent distress. In 2024, youth unemployment remained alarmingly high at 22.5% for ages 15 to 35 and 32% for ages 15 to 24.
“This evidence highlights the urgency of expanded and more focused labour market practices and policies such as retraining and re-skilling programmes to combat skills mismatch and boost employability,” the GSS said.
Successive governments over the period have attempted to introduce policies and programmes to address this menace. For instance, under the previous Akufo-Addo administration, policies such as the Nation Builders Corps (NABCO), the One District, One Factory, Planting For Food and Jobs, and others were introduced as part of the job creation efforts.
Under the current Mahama administration, the Finance Minister, Dr Cassiel Ato Forson, announced in the 2026 Budget presentation that the budget was specifically designed to create up to 800,000 new jobs. The GH¢63 billion road contracts awarded so far under the Big Push will generate an estimated 490,000 jobs.
This estimation is consistent with World Bank metrics on job creation from road investment. The three new garment factories will create over 20,000 direct jobs. The seven agro-processing plants are expected to employ about 700 people directly and thousands more through supply chains. The National Policy on Integrated Oil Palm Development will create 250,000 jobs across the value chain.
These measures, although apt, have not been able to, or will not be able to, address the joblessness situation because the rates churned out by the statistical service do not inspire hope and confidence that unemployment can be addressed.
SMEs
The focus of this article is to explore the unadulterated role that small and medium-scale enterprises (SMEs), businesses with 1–20 employees, can play in addressing the challenge.
According to the World Bank report, SMEs are the backbone of most economies, representing around 90 per cent of all businesses and accounting for more than half of global employment.
In developing countries, SMEs are central to economic diversification, productivity and poverty reduction, yet the World Bank notes that they face persistent challenges in obtaining the financing needed to start, sustain and grow.
Over the next decade, the Bretton Woods Institution estimates that 1.2 billion young people will reach working age, but only about 420 million jobs are expected to be created. This leaves hundreds of millions without a clear path to employment, with far-reaching social and economic implications.
Therefore, expanding access to finance for SMEs is essential to enable private investment, productivity growth, and stronger local economies.
Access to finance enables entrepreneurs to innovate, expand and hire, empowering women and youth and strengthening communities. Supporting SMEs—especially women-owned and youth-led enterprises—is thus central to building inclusive and sustainable growth.
In the case of Ghana, this calls for huge investment and budgetary allocation to support SMEs.
Although the government has designated programmes to support SMEs, including skill development programmes such as Adwumawura, which has been allocated GH¢170 million, and the National Apprenticeship Programme with a budget of GH¢690 million, the government must do more if indeed the issue of unemployment is a major concern.
The author, Laud Nartey, is a Ghanaian journalist with a special interest in business reporting.
Can be reached at Nartey.laud@yahoo.com
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Source:
www.graphic.com.gh
