A new report from the Ghana Statistical Service (GSS) reveals a stark contradiction in the nation’s economic progress: while productivity has surged in key sectors, wages for many workers remain stubbornly low.
Titled The 2024 National Report on Productivity, Employment, and Growth, the study underscores a widening gap between economic efficiency and worker compensation, raising concerns about long-term stability and equity.
Ghana’s mining, utilities, and tourism industries have driven significant productivity gains in recent years, reflecting improved efficiency in how goods and services are produced. Yet these advancements have not translated into higher earnings for large segments of the workforce. Mining, for instance, saw productivity leap forward due to technological upgrades, but employment growth in the sector stalled, and wage increases were minimal. Meanwhile, construction and tourism delivered modest wage improvements alongside productivity gains, though benefits remain inconsistent across regions and job types.
The disconnect, analysts argue, stems from Ghana’s heavy reliance on informal labor. Over 80% of the workforce operates in informal sectors like small-scale farming, street vending, and artisanal trades—areas where productivity gains rarely trickle down to workers. Farmers may harvest larger yields due to better techniques or tools, for example, but stagnant crop prices and rising costs for fertilizers or transportation erode their profits. “Workers are trapped in a cycle where they produce more but earn less,” noted a GSS spokesperson. “This undermines both economic equity and consumer spending power, which are vital for sustained growth.”
For ordinary Ghanaians, the implications are tangible. In urban markets, traders lament stagnant incomes despite longer hours, while rural families face shrinking margins despite higher agricultural output. Inflation, currently hovering around 23%, exacerbates the strain, leaving households struggling to afford basics like food and fuel. “We work harder, but life gets harder,” said Kofi Mensah, a cassava farmer in the Eastern Region. “The numbers say the economy is growing, but our pockets are empty.”
Economists stress that reversing the trend requires targeted investment in high-value industries. Sectors like manufacturing and commercial agriculture have demonstrated the potential to marry productivity with wage growth, but scaling these industries demands better access to financing, infrastructure, and skills training. Formalizing informal jobs is also critical, experts say, as registered businesses are more likely to offer fair wages, benefits, and pathways for advancement.
The GSS report warns that without urgent reforms, Ghana risks deepening inequality and social unrest. While the nation’s macroeconomic indicators may paint a picture of progress, the lived reality for millions of workers tells a different story—one where economic growth remains a distant promise rather than a shared achievement. As debates over solutions intensify, the question lingers: who will Ghana’s productivity boom ultimately serve?
