Macroeconomic gains must create employment – Prof. Bokpin

Economist Professor Godfred Alufar Bokpin has urged the government to ensure that Ghana's recent macroeconomic gains translate into meaningful employment opportunities, arguing that economic stability alone will have little impact unless it improves livelihoods and creates sustainable jobs.

Speaking at the Ghana National Chamber of Commerce and Industry (GNCCI) Mid-Year Budget Review Seminar in Accra, Prof. Bokpin acknowledged the progress made in reducing inflation, strengthening fiscal discipline and improving debt sustainability. However, he stressed that the country's economic policy framework remains too heavily focused on macroeconomic indicators while paying insufficient attention to employment generation.

According to Prof. Bokpin, Ghana currently sets clear national targets for inflation, economic growth and fiscal balance but lacks a measurable employment target to guide government policy.

"We have a target for inflation, we have a target for growth, we have a target for fiscal balance, but there is no nationally determined target for employment generation in the budget," he said.

He argued that macroeconomic stability should be regarded as a tool for economic transformation rather than an objective in itself.

Recent data from the Ghana Statistical Service indicate that Ghana's economy continues to strengthen, with inflation falling to 5.3 percent in June 2026 while Gross Domestic Product (GDP) expanded by 6.4 percent in the first quarter of 2026.

The government has also highlighted improvements in fiscal consolidation, reduced public borrowing and debt sustainability under the International Monetary Fund (IMF)-supported economic programme.

Despite these achievements, Prof. Bokpin maintained that ordinary Ghanaians will only feel the benefits of economic recovery if it results in higher incomes and increased employment opportunities.

"Macroeconomic stability should be a means to transformation, not an end in itself," he noted.

The economist pointed to Ghana's labour market challenges, noting that unemployment remains high despite improving economic indicators.

According to available labour statistics:

• Overall unemployment stood at 13.0 percent in the third quarter of 2025.
• Youth unemployment reached 32.4 percent.
• Nearly two million young people aged 15 to 35 were not in employment, education or training (NEET).

Prof. Bokpin further observed that approximately 500,000 people enter Ghana's labour market every year, warning that current levels of job creation are insufficient to absorb the growing workforce.

He called for targeted employment programmes, particularly for women and young graduates who continue to face significant barriers to entering the labour market.

Prof. Bokpin urged policymakers to channel more resources into productive sectors of the economy, including agriculture, manufacturing and services, describing them as the primary engines of job creation.

"It is in the real sector that jobs are created. It is in the real sector that income is generated. The fiscal and monetary sectors must complement each other to make the real sector the winner," he said.

He recommended that future national budgets include measurable employment targets alongside traditional fiscal and macroeconomic indicators to ensure government spending directly supports job creation.

While commending efforts to restore fiscal discipline, Prof. Bokpin cautioned against relying excessively on austerity measures at a time when Ghana continues to face significant infrastructure challenges.

He argued that fiscal consolidation should be balanced with strategic investments in essential sectors such as:

• Roads and transport infrastructure
• Water and sanitation systems
• Education
• Healthcare

"We cannot celebrate austerity in the midst of huge infrastructure deficits," he stated.

The economist also called on the Ghana Statistical Service to publish more regular labour market data to help policymakers monitor employment trends and design evidence-based interventions.

Also addressing the seminar, President of the Ghana National Chamber of Commerce and Industry, Stephane Miezan, commended the government for maintaining macroeconomic stability and fiscal discipline.

He, however, stressed that flagship initiatives, including the 24-hour economy policy, export promotion programmes and industrialisation strategies, will only succeed through consistent implementation and stronger collaboration with the private sector.

"The ultimate success of these initiatives depends on timely execution, policy continuity and strong collaboration with the private sector," Mr. Miezan said.

He encouraged continued dialogue between government and businesses to ensure policies support investment, productivity and sustainable economic growth.