REVEALED: Causes of Unemployment in Ghana & Solutions

Unemployment is one of Ghana’s biggest problems. Even though Ghana’s unemployment rate hit a record high in 2015, it seems to be getting worse.

In 2010, more than 10% of the people could work but didn’t have jobs. In 2015, that number was as high as 6.81 percent. However, the unemployment rate in Ghana has gone down a lot in the last few years.

More than 1 million Ghanaians could work but don’t have jobs, and the number seems to be going up as more economic crises hit Africa. Unemployment in Ghana can be traced back to a number of problems that haven’t been solved.

Why there is unemployment in Ghana and how to fix it

In this article, we’ll look at why there are so many unemployed people in Ghana and what can be done about it.

What makes Ghana’s unemployment happen?

One of the main reasons for unemployment in Ghana is that people don’t have the right skills. The free education system in the country has helped reduce the number of people who can’t read or write, but it has also made education less good.

So, there are more graduates who know how things work in theory but don’t know how to put them into practice.

Companies can’t hire people who are qualified because they don’t have the skills they need. This leads to unemployment. People with the right skills and qualifications may not be able to get a job because they are too good for it.

The rigidity of the free education system is another way that it makes people lose their jobs. The education system in Ghana is rigid and can’t keep up with how quickly the world changes.

Some of the skills that are taught in school are no longer needed or have been replaced by computers and machines.

The people looking for jobs are not qualified enough, so they will have to stay out of work until they can get the right skills.

Most Ghanaians have only one goal after so many years of school: to get a white-collar job. White-collar jobs are formal jobs in big companies or companies with a good name in the community.

The high wages and bonuses that come with working for these companies are a ticket to a successful life.

Because of this, most Ghanaians go to school with the expectation that they will get a white-collar job. It turns out that there aren’t enough white-collar jobs to meet the demand.

There aren’t many places that can offer these kinds of jobs, so most of the people who are able to work wouldn’t be able to get them.

This makes most Ghanaians stay home and wait for opportunities instead of going to work in the blue or pink-collar industries. Because of this, many graduates and qualified people stay out of work for a long time, which makes the unemployment rate in the country go up.

LACK OF ENTREPRENEURSHIP EDUCATION

Ghana only has a few industries, multinational companies, and corporate organizations that can hire all the people who want to work.

This is because of many things, like the country’s economy, which isn’t strong enough yet to attract many multinational companies, and the fact that there isn’t enough education about how to start a business.

The lack of education about starting a business, in Ghana has made more people want jobs than people who make jobs. So, a lot of people are trying to get the few jobs that are open, but only a few people are starting businesses that will make more jobs.

The education system also puts more emphasis on teaching people the skills they need to work in a company than on teaching them how to start their own.

When people can’t find white-collar jobs, it’s harder for them to start their own businesses because they don’t have enough vocational support, training facilities, or attention paid to how important entrepreneurial skills are.

NOT ENOUGH MONEY

There are millions of unemployed people who could work, but only a few of them have the ideas and skills to start their own businesses. Unfortunately, these few people can’t get the money they need to start or grow their businesses.

Ghana has trouble getting loans because they don’t have enough collateral. Banks also charge high-interest rates, which makes it hard for these people to pay back their loans on time.

Most banks don’t want to give loans to these people because they don’t think they’ll be able to pay them back because they don’t have a long or stable work history.

REVIEW OF THE EDUCATION SYSTEM

The education system and curriculum need to be carefully looked at. People should get the training they need to have the skills that are needed in the job market. Also, schools should teach students how to be business owners.

Giving people the skills they need to make their own jobs instead of looking for the few jobs that are open will help the economy grow and bring down the unemployment rate.

SUPPORT FOR UPCOMING ENTREPRENEURS

Entrepreneurs who want to start their own businesses should be able to get loans from the government. The interest rates on these loans should be low, and the repayment plans should be flexible so that entrepreneurs can run their businesses well while paying back the loans.

MAKE MORE BUSINESSES

Also, the government should start more businesses. Ghana has many opportunities that haven’t been looked into yet. These are chances for the government to create more jobs.

FAVORABLE ECONOMIC POLICIES

Foreign investors and big companies will come to a country if its economic policies are good. In many African countries, like Ghana, one of the biggest employers is a multinational company like Dangote Group.

If there were more of these companies in Ghana, the unemployment rate in the country would go down by a lot.

CONCLUSION

Unemployment is one reason why the country has a lot of social problems and bad habits. Because there aren’t enough jobs, many people are turning to illegal ways to make money. This makes the country’s crime rate go up and makes it hard for investors from other countries to be interested in the country.

People in Ghana are having a harder time making a living because of the high unemployment rate. Because of this, the government needs to find the right ways to solve the problem.

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