According to the Bank of Ghana’s July 2025 Monetary Policy Report, private sector contributions to the Social Security and National Insurance Trust (SSNIT) rose modestly by 2.1% year-on-year, reaching 1,065,925 contributors in May 2025.
This marks an increase from 1,044,111 contributors recorded during the same period last year, highlighting gradual formalisation within the labour market.
While this growth appears modest, it signifies steady formal employment gains within an economy still recovering from years of fiscal and inflationary pressures. The slight uptick also underscores improved compliance among private sector employers and a growing sense of security among workers participating in the national pension scheme.
On a monthly basis, the number of contributors remained broadly stable compared to 1,067,531 in April, pointing to a relatively steady pace of formal employment growth within the private sector. This consistency provides some comfort amid growing concerns about labour market fragility and business uncertainty.
Labour Market Shows Mixed Signals
Despite the marginal gains in pension contributions, Ghana’s job market presented a more complex picture during the same period. Data from the Bank of Ghana revealed that the number of jobs advertised in selected print and online media declined by 15.7% year-on-year to 2,502 vacancies in June 2025, down from 2,968 in June 2024.
The situation worsened on a month-to-month basis, as job openings dropped 18.4% from 3,066 in May 2025. This downturn in job adverts reflects weaker hiring intentions among employers, possibly due to elevated operational costs, business restructuring, or seasonal employment patterns.
Nevertheless, the broader picture over the first half of 2025 offers a more hopeful narrative. Cumulative job adverts for January to June 2025 increased by 7.7% to 18,604 vacancies, suggesting that recruitment activity remains active across several sectors despite short-term declines.
Service, ICT, and Construction Sectors Drive Recruitment
The Bank of Ghana’s data further indicates that the services, ICT, and construction sectors accounted for the bulk of new job postings in the first half of the year. This aligns with Ghana’s broader economic recovery dynamics, as digital transformation and infrastructure projects continue to drive labour demand.
The ICT sector, in particular, has seen a surge in job opportunities thanks to the growing digital economy, expansion of fintech services, and the increasing adoption of e-commerce platforms. Similarly, the construction industry has benefited from renewed public and private investment in infrastructure and housing, creating new employment avenues for skilled and semi-skilled workers.
Meanwhile, the services sector—which encompasses hospitality, tourism, and retail—has experienced a rebound following the post-pandemic recovery, buoyed by increased consumer spending and rising tourist arrivals.
Economic Activity on a Recovery Path
The mixed employment trends are unfolding against a backdrop of improving macroeconomic indicators. The Bank of Ghana’s Composite Index of Economic Activity (CIEA) expanded by 4.4% in May 2025, compared to 3.4% in the same month a year earlier.
According to the Central Bank, this uptick in economic activity is driven by robust trade performance, increased household and business consumption, growth in construction, and a rebound in the tourism sector. These factors have collectively enhanced confidence in Ghana’s near-term economic outlook, despite lingering challenges in job creation.
The improvement in the CIEA reflects that Ghana’s economy is gradually regaining momentum after years of instability and inflationary shocks. However, the uneven nature of this recovery—marked by rising pension contributions alongside a decline in job advertisements—suggests that not all sectors are benefitting equally from the rebound.
Experts believe that the divergence between rising SSNIT contributors and falling job adverts highlights a structural shift in Ghana’s labour market. While formal employment appears to be consolidating among existing workers, fewer new positions are being advertised. This could indicate that companies are prioritizing productivity improvements and digital efficiency over workforce expansion.
Moreover, the modest growth in pension contributions could reflect employment stability among medium to large enterprises, even as smaller businesses face challenges such as limited access to credit and rising operational costs.
To sustain the positive trend in pension contributions and ensure inclusive growth, analysts argue that Ghana needs targeted policy interventions that encourage private sector expansion and job creation—particularly in industries with high employment potential such as agribusiness, manufacturing, ICT, and tourism.
Sustaining Private Sector Confidence
The Bank of Ghana has emphasized that sustaining these gains will require consistent policy execution, stable macroeconomic conditions, and focused support for the private sector. As inflation moderates and interest rates stabilize, businesses may find renewed confidence to expand their operations and hire more workers.
The private sector remains a vital pillar of Ghana’s economy, contributing significantly to national output, innovation, and job creation. The modest rise in SSNIT contributions, despite a slowdown in advertised job openings, suggests that formal employment is holding steady—an encouraging sign in uncertain times.
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