The Ghana Statistical Service (GSS) has released the first edition of the National Report on Productivity, Employment, and Growth, revealing that labour productivity in Ghana has grown at a faster rate than technology-based changes in output.
The report, covering data from 1991 to 2022, provides a comprehensive analysis of labour and total productivity trends in Ghana. It offers valuable insights into how productivity can be measured and leveraged for economic development.
At the official launch of the report, the Government Statistician, Professor Samuel Kobina Annim, emphasized the significance of the findings and the new direction of the GSS. According to him, the focus of the GSS has shifted from merely presenting statistical outputs to delivering statistics in a policy-relevant manner.
“We are gathered here in pursuance of the new focus that we have adopted as a Service. And this new focus has to do with not presenting statistical outputs but presenting statistics in a manner that is policy relevant. What we are doing today is focusing on three key areas: productivity, employment, and economic growth.”
Professor Samuel Kobina Annim
He further explained the difference between labour productivity and total productivity, emphasizing their role in measuring economic efficiency.
“Labour productivity measures how efficiently workers produce goods and services over a specific period. Total productivity measures how efficiently multiple inputs, like labour, capital, and materials, are used together to produce output and drive growth.”
Professor Samuel Kobina Annim
Sectoral Productivity Trends in Ghana
The report indicates that Ghana has achieved a moderate level of labour productivity growth, with a significant acceleration between 2010 and 2016, coinciding with the commencement of oil extraction. During this period, Ghana recorded annual labour productivity levels higher than the average for lower-middle-income countries but still below that of higher-middle-income countries.
Despite this improvement, the report notes that the overall impact on total productivity has been limited, as growth has been concentrated in specific sectors such as mining, rather than being widely distributed across the economy.
A closer examination of sectoral trends shows significant variations in productivity growth and employment patterns. The mining sector recorded high productivity growth but failed to create substantial job opportunities. In contrast, household agriculture and trade experienced productivity increases but also saw job losses, as many workers transitioned into lower-productivity roles in urban services and construction.
However, the report highlights some positive trends in commercial agriculture, manufacturing, transportation, and utilities, which achieved both productivity gains and job creation. These sectors stand out as key drivers of sustainable economic development.
The findings of the report underscore the importance of investing in sub-sectors that can generate productivity, create decent employment, and promote technological modernization. The identified priority sectors for intensified investment include commercial agriculture, transportation, utilities, and manufacturing due to their potential to stimulate economic growth and employment creation.
One of the report’s critical findings is that average earnings in Ghana have increased at a slower pace than productivity growth, leading to a widening gap over time.
Certain sub-sectors, such as utilities, construction, and tourism, recorded the highest earnings growth relative to productivity. However, in the more informal sectors, including household agriculture and trade and repair services, earnings growth has lagged behind productivity. This suggests that while workers in some industries benefit from increased wages, others—particularly those in informal employment—are not experiencing the same level of income growth despite overall improvements in productivity.
Recommendations for Policymakers and Businesses
The report concludes with key recommendations for policymakers and businesses to leverage productivity growth for economic development. By analyzing productivity trends, decision-makers can develop strategies to improve efficiency and economic performance. The data provided can also help policymakers set realistic performance targets for various sectors and make informed decisions about wages, investments, and resource allocation.
Furthermore, the report’s insights can help businesses and government agencies identify opportunities for innovation and modernization. By investing in technology, infrastructure, and skills development, Ghana can maximize the benefits of productivity growth and ensure that economic gains translate into broader prosperity.
The launch event featured presentations and panel discussions where key stakeholders analyzed the report’s findings and discussed their implications. Participants actively contributed to the discourse, offering diverse perspectives on Ghana’s productivity landscape.
Partners at the event commended the Government Statistician for his efforts in transforming the Ghana Statistical Service, particularly in making data more accessible to policymakers and stakeholders. They acknowledged the role of GSS in ensuring that policymakers have access to the necessary information to drive informed decision-making and national development.
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