Tackling idle youth challenge in Ghana: GSS outlines policy direction

A Labour Economist at Ghana Statistical Serrvice (GSS), Anthony Oduro-Denkyirah, has proposed a number of policy directions which when addressed, could help to address the challenge of the large number of the country’s who are completely idle.

A study by the GSS has shown that almost two million youth are not in education, employment or training (NEET) has fallen by almost half a million as at the third quarter of last year

Key policy directions

He made the proposal through a written interview saying that, first, there is a need to increase investment which has the potential for youth employment creation in the area of green, digital and care economies.

To him, this does not only create direct employment opportunities but also spurs economic activity that leads to employment creation in related industries.

Mr Oduo-Denkyira also pointed to the need to implement what he described as Active Labour Market(ALMPs) in combination with income support measures.

That, to him, will help tackle youth unemployment and inactivity. In order to make it effective, they can be in the form of integrated packages that combine employment services, employment creation programmes, subsidised employment and wages, as well as training, entrepreneurship promotion and self-employment.

Additionally, this could be linked to income support and implemented in close collaboration with local stakeholders local stakeholders to reach the most disadvantaged youth who could not participate in the programmes above.

Thirdly, he said there is need to provide access to affordable credit — This facilitates business start-ups and thier expansion, supporting employment creation and enterpreneurship by young people.

Access to credit, he maintained, can be vital to young entrepreneurs who may face challenges in obtaining financing through conventional channels such as commercial banks.

Mr Oduo-Denkyira said investment in public education and training for expanding sectors is equally crucial under the circumstance.

This includes investing in quality public education and TVET, especially quality apprenticeships. Equipping young people with relevant competencies and skill will facilitate thier transition into the labour market.

He said there is also the need to consider youth employment outcomes in macroeconomic policy choice – Advocate for macroeconomic policies that support better employment opportunities for young people.

Context

The number of youth in the country who are not in education, employment or training (NEET) has fallen by almost half a million as at the third quarter of last year.
This means that, in comparison with quarter three last year with the same period in 2022, NEET fell by 5.9 per cent from 24.1 to 18.2 per cent.

But the development still leaves almost two million youth in the country without NEET, the Ghana Statistical Service (GSS) has found.

Specifically, the GSS annual Household Income and Expenditure Survey (AHIES) indicated that in the third quarter of last year, 1.9 million youth in the country, aged 15 to 35 were NEET.

Females constituted predominantly 1.2 million of the youth not in education, employment or training, compared with 715,691 males.

 

The number, however, represents a significant decline in the numbers as compared to the same period the previous year.

Breakdown

The report said one in every three youth not in education, employment or training resided in the Greater Accra Region, with over half a million (565,360) youth not engaged in any of the three activities.

Four other regions besides Greater Accra also recorded youth NEET over 100,000: the Ashanti Region had (352,503), Central with (155,171), Eastern (143,601), and Western Region with (137,865).

The youth NEET rate of 21 per cent for females indicates six percentage points higher than for males (15 per cent).

The Greater Accra Region had the highest NEET rate with a little over a quarter (26.9 per cent) of the population 15 to 35 years not engaged in education, employment or training.

The North East Region where 19.5 per cent of the youth are NEET was the second highest rate, with about one in five youth NEET.

All regions except Bono East 8.3 per cent had NEET rates in double figures. The NEET rate was higher for youth in urban areas; 20.6 per cent than for rural residents’ 15 per cent.

Between the third quarters of 2022 and 2023, the percentage of youth NEET declined in all regions, except in Greater Accra which experienced a marginal increase of 0.5 percentage points.

Greater Accra was the only region to record increases in youth NEET for both males and females within the period under consideration.

In the other 15 regions, youth NEET declined for both males and females except for Western which recorded a divergent trend by sex: a 5.9 percentage point decrease for males and a 0.3 percentage point increase for females.

Economists share opinion

In spite of the drop in the numbers, two other economists have described the development as a warning signal which needs to be addressed urgently considering the threat it poses to the country.

Professor of Finance and Economics at the University of Ghana Business School (UGBS), Professor Godfred Bokpin, and the Director of the Institute of Statistical, Social and Economic Research (ISSER), UG, Prof. Peter Quartey, in separate interviews with the Daily Graphic, said to have about two million of the youth not engaged
in employment was not only a threat to national security, but one that could affect real growth rate of the economy.

To them, those were highly energetic young people whose contribution to the growth of the economy could be enormous when given the opportunity.

Prof. Bokpin said the situation was precarious, adding that although the Free Senior Secondary School (FSHS) had helped, there was still far more room for improvement.

He referenced studies by the Commonwealth which pointed to the worsening poverty levels in Ghana, most of which were youth; and the World Bank report which indicated that Ghana’s population was likely to balloon to about 45 million by 2040.

Prof. Bokpin said most frightening about the World Bank projections was that, about 55 per cent of the number would be youth below the age of 30 years.

The GSS report also pointed to an alarming widening of the gap between the ‘haves and have-nots’ which also demonstrated the lack of effort on the part of policymakers to bridge that gap.

The Finance and Economics professor consequently called for deliberate policies within the real sectors of the economy to absorb the youth.

“We must be intentional with our spending in the real sectors. We require intentionality in programmes and policies that have higher income and employment multipliers, one that is job-rich, with growth potential,” Prof. Bokpin added.

To him, by doing those and more with the youth in mind, the gap would be closed and the youth would not worsen their involvement in social vices.

Prof. Quartey said much as the report was an improvement, it signalled to the nation a major problem which required urgent attention.

“To have two million of our youth unemployed is significant and means that we do not need to relax because these are very energetic young people whose energies can easily be channelled into production and not into social vices. Note that these youth can chase people around, just to take their mobile phones, and so on,” he warned.

To him, there are a myriad of policies that were directed at the youth, which lacked implementation and, therefore “we need to ensure that we implement the policies and programmes directed at the youth to make progress and cure the danger we see now, according to the report”.

Prof. Quartey mentioned agriculture, for instance, and stated that what could attract the youth even more into that sector was the use of technology and leveraging artificial intelligence.

Source:classfmonline.com