
Ghana’s unemployment fee eases moderately to 13.0% in 2025 3rd quarter – Life Pulse Daily
Introduction
Ghana’s unemployment fee eased moderately to 13.0% in the 2025 third quarter, according to the latest Quarterly Labour Force Survey released by the Ghana Statistical Service. The Life Pulse Daily report highlights a marginal decline from 13.1% in the fourth quarter of 2024, a brief dip to 12.6% in the second quarter of 2025, and a modest rebound to 13.0% by the end of September 2025. While the headline figure suggests a slight improvement, the data also reveal persistent challenges – especially among young people, women, and rural communities. This article unpacks the numbers, explains the broader context, and offers practical guidance for policymakers, educators, and job‑seekers who want to understand what the 13.0% unemployment rate really means for Ghana’s labour market.
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Key Points
Overall Unemployment Trend in 2025
The Quarterly Labour Force Survey covering the first three quarters of 2025 shows a average unemployment rate of 12.8%. The rate fell from 13.1% in Q4 2024 to 12.6% in Q2 2025 before rising again to 13.0% in Q3 2025. This slight volatility indicates that while job creation is occurring, it is not fast enough to generate a sustained downward trajectory.
Youth Unemployment and NEET Rates
Unemployment among individuals aged 15‑24 reached 32.4% in the third quarter of 2025, more than double the national average. The NEET (Not in Employment, Education, or Training) figure for this age group stands at 21.5%, representing 1.34 million young people. For the broader 15‑35 age cohort, the NEET rate is 19.5% (about 2.0 million persons). Regional disparities are stark: the Central Region records the highest NEET rate at 25.3%, while the Oti Region records the lowest at 9.5.
Sectoral Distribution of Employment
Employment is dominated by the services sector, which absorbed 6.0 million workers (44.5% of the employed population) in Q3 2025. Agriculture remains the second‑largest employer with 5.0 million jobs (37.2%), followed by industry with 2.5 million jobs (18.2%). Ten of the sixteen administrative regions have more than half of their employed population working in agriculture, with the Savannah Region leading at 71.1%.
Vulnerable Employment and Skills Utilisation
More than 72% of employed persons are engaged in vulnerable jobs, defined as own‑account work or unpaid family work. Female workers are disproportionately affected, with a vulnerable‑employment share of 79.1% compared with 63.7% for males. Additionally, about one‑fifth of the workforce reports under‑utilisation of their skills, especially among women and rural employees.
Policy Implications Highlighted by the Statistician
Government Statistician Dr. Alhassan Iddrisu stresses that “the tempo of activity introduction stays too gradual to power a sustained decline in unemployment.” He calls for policies that expand labour absorption, improve job quality, and link skill‑development programmes — such as the 24‑Hour Economy initiative — to actual labour‑market demand.
Background
Ghana’s labour market has experienced modest growth over the past decade, driven primarily by expansion in the services and agriculture sectors. The Quarterly Labour Force Survey is the official source for employment and unemployment statistics, providing quarterly snapshots that inform government policy and international development planning. Historically, Ghana’s unemployment rate has hovered between 12% and 14% since 2015, reflecting a delicate balance between a growing working‑age population and limited job creation capacity.
Key definitions used in the survey:
- Unemployment rate: the percentage of the labour force that is without work but actively seeking employment.
- NEET rate: the share of young people (15‑24) who are not employed, not engaged in education or training.
- Vulnerable employment: jobs that are informal, low‑paid, or lack social protection.
Understanding these concepts is essential for interpreting the 13.0% figure reported for the third quarter of 2025.
Analysis
What the 13.0% Figure Really Means
While a 0.1‑percentage‑point decline from the previous quarter sounds small, it must be viewed against a backdrop of a labour force that grew by more than 15 million participants during the first three quarters of 2025. Employment rose by only 330,000, moving from 13.09 million to 13.42 million. This limited increase explains why the unemployment rate returned to 13.0% after a brief dip to 12.6% in Q2.
Comparative Regional Performance
Regional variations underscore the uneven nature of job creation. The Savannah Region’s 71.1% agriculture‑employment share illustrates a reliance on low‑productivity activities, whereas regions with stronger services sectors (e.g., Greater Accra) exhibit higher shares of vulnerable employment but also greater opportunities for formal wage jobs. These disparities suggest that targeted regional development programmes could alleviate central‑region NEET rates and reduce national vulnerability.
Skill‑Match and Under‑Utilisation
The survey reveals that over 50% of workers feel their skills are fully utilised, yet about 20% report under‑utilisation. This mismatch is more pronounced among women (22%) and rural workers (23%). Such findings point to a need for better alignment between educational curricula and employer requirements, as well as stronger mechanisms for lifelong learning.
Night‑Shift Participation and Work‑Arrangement Preferences
Only 1.6% of employed persons are engaged in regular night shifts, but nearly 50% of those not currently in shift‑based work express interest in such arrangements. This untapped demand could be harnessed through flexible scheduling policies, especially in the hospitality and manufacturing sectors, to improve labour‑force utilisation during off‑peak hours.
Legal and Regulatory Considerations
Ghana’s Labour Act, 2003 (Act 651) governs employment standards, including provisions for vulnerable workers, overtime, and night‑work regulations. While the Act does not directly address the informal sector’s high vulnerability, recent policy discussions have suggested amendments to strengthen social‑security coverage for own‑account and unpaid family workers. Any legislative changes would need to be coordinated with the Ministry of Employment and Labour Relations to ensure compliance with International Labour Organization (ILO) conventions.
Practical Advice
For Policymakers
1. Accelerate job‑creation programmes that target the services sector, especially in urban centres where demand for skilled labour is rising.
2. Expand vocational training that aligns with emerging industries such as renewable energy, digital services, and agro‑processing.
3. Introduce incentives for firms that hire youth and women, including tax credits for on‑the‑job training and subsidies for hiring from NEET groups.
4. Strengthen data collection on skills utilisation to identify gaps early and adjust training programmes accordingly.
For Educators and Training Institutions
1. Update curricula to incorporate practical, industry‑relevant skills that match the needs of the services and agro‑industrial sectors.
2. Partner with employers to offer internships and apprenticeships that provide on‑the‑job experience for graduates.
3. Promote entrepreneurship by integrating business‑planning modules and providing access to micro‑finance for young graduates.
For Job‑Seekers
1. Identify high‑growth sectors such as fintech, health‑tech, and renewable energy, and acquire certifications that are in demand.
2. Leverage online learning platforms to upskill in areas like digital marketing, data analysis, and project management.
3. Network strategically through professional associations and community groups to learn about informal job opportunities that may not be advertised.
FAQ
What does a 13.0% unemployment rate indicate about Ghana’s economy?
It suggests modest job creation that barely keeps pace with the growing labour force. While the rate is slightly lower than the previous quarter, the overall trend shows limited progress toward reducing unemployment sustainably.
Why is youth unemployment so high despite overall employment growth?
Youth unemployment remains high because the economy’s growth is concentrated in sectors that require experience or capital, which many young people lack. Additionally, the education‑to‑work transition is inefficient, leading to a large NEET population.
How does vulnerable employment affect Ghana’s labour market?
Vulnerable employment often lacks stable income, social protection, and career progression. High vulnerability among women and rural workers exacerbates income inequality and reduces consumer spending power, limiting broader economic dynamism.
Can the 24‑Hour Economy initiative solve unemployment?
The 24‑Hour Economy policy aims to extend operating hours of businesses, potentially creating more shift‑based jobs. However, its impact will depend on the availability of workers willing and able to work night shifts and on complementary measures that improve job quality.
What regional policies could reduce NEET rates?
Targeted investments in education, skills training, and infrastructure in high‑NEET regions such as the Central and Savannah Areas can attract industries that absorb young talent. Public‑private partnerships can also create local job hubs that match youth with emerging opportunities.
Conclusion
The Ghana unemployment fee easing moderately to 13.0% in the 2025 third quarter reflects a nuanced picture: modest employment gains are offset by a rapidly expanding labour force, high youth NEET rates, and a significant share of vulnerable workers. While the services sector remains the largest absorber of labour, the quality of jobs is often precarious, especially for women and rural residents. Policymakers, educators, and job‑seekers must work together to close the skills‑match gap, accelerate targeted job‑creation programmes, and strengthen social protection for vulnerable workers. Only through coordinated, data‑driven interventions can Ghana achieve a sustained decline in unemployment and harness the full potential of its young population.
Sources
1. Ghana Statistical Service – Quarterly Labour Force Survey, 2025 (Q1‑Q3).
2. Ministry of Employment and Labour Relations – Ghana Labour Act, 2003 (Act 651).
3. Life Pulse Daily – “Ghana’s unemployment fee eases moderately to 13.0% in 2025 3rd quarter”.
4. International Labour Organization – Decent Work Agenda for Ghana (2023‑2025).
5. World Bank – Ghana Economic Update, 2025 ( labour market overview).
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