Ghana’s 2025 budget has drawn sharp condemnation from the Trades Union Congress (TUC) over what it calls a “stark misalignment” between the government’s job creation pledges and its fiscal priorities.
While the Office of Government Machinery received GH₵847.9 million for goods and services, the Ministry of Labour, Jobs and Employment was allocated just GH₵17.6 million—a 48-fold disparity that union leaders argue undermines efforts to tackle rampant unemployment.
Systemic Underfunding Exposed
The gap widens when compared to 2024 figures: last year, the labour ministry’s operational budget stood at GH₵7 million against GH₵924.1 million for the presidential office. TUC Deputy Secretary General Kwabena Nyarko Otoo told The High Street Journal the trend reflects “chronic neglect” of labour governance. “How can a ministry tasked with shaping employment strategy function on crumbs?” he asked. “This isn’t just underfunding—it’s institutional paralysis.”
While the labour ministry doesn’t directly create jobs, it coordinates employment policies across sectors like agriculture and manufacturing. Otoo emphasized its potential to steer procurement rules, such as mandating local sourcing for programs like Free SHS to boost youth employment. “Instead, the ministry struggles to operate beyond paying salaries,” he said.
Eroded Worker Protections
Underresourcing has crippled key institutions, the TUC warns. The National Tripartite Committee, legally mandated to resolve labor disputes, now operates as a “minimum wage factory,” per Otoo, setting base pay below $2 daily while ignoring broader issues. Recent clashes, including the dismissal of three Sunon Asogli workers for unionizing, highlight collapsing safeguards. “When underfunded agencies can’t mediate, strikes become workers’ only tool,” Otoo noted.
Labour experts tie the crisis to economic stagnation. Ghana’s unemployment rate hit 14.7% in 2023, with youth joblessness nearing 46%. “A robust labour ministry could align growth sectors with employment targets,” said Accra-based economist Ama Serwah. “But without funding, policies remain theoretical.”
The TUC demands immediate revisions to prioritize labour governance, including direct Consolidated Fund support for statutory bodies. “Macroeconomic stability means little without fair labour markets,” Otoo argued. Failure to act, he warned, risks escalating unrest: over 20 major strikes were recorded in 2024 alone.
As public frustration mounts, the budget debate has become a litmus test for the government’s job agenda. With 300,000 new graduates entering the workforce yearly, analysts say Ghana’s social stability may hinge on closing its priorities gap—not just its fiscal one.
