Building a renewed social contract: Tackling youth unemployment and planning Ghana’s future

Picture this: A young woman in Tamale, armed with a degree in economics and boundless ambition, finds herself locked out of the job market. Despite her potential, she joins the ranks of the 1.3 million unemployed Ghanaian youth, stalled by a system that’s out of sync with the realities of the modern economy.

Her story is not unique – it’s the story of a generation losing hope in a system that promises progress but delivers barriers.

Unemployment consistently ranks as the top concern among Ghanaians, with 41% identifying it as their primary worry in the Afrobarometer’s most recent survey. People aren’t just calling for jobs; they’re demanding them. It’s not hard to see why this is the case. If left unaddressed, this unemployment crisis risks becoming a time bomb, eroding social cohesion and exacerbating economic disparities.

However, with intentional investments in skills development and employment, this demographic challenge can transform into an economic dividend, propelling Ghana into a prosperous future. The real question is whether our leaders will rise to the occasion, turning manifesto promises into concrete action, or whether politics will once again devolve into empty rhetoric.

Youth unemployment isn’t just an economic statistic—it’s a crisis. As of the end of 2023, 21.4% of young people are unemployed in Ghana, with young women hit hardest. This is not merely a missed opportunity; it is a systemic challenge that demands immediate action. Waiting only compounds the risks, as a disillusioned youth bulging with untapped potential faces a bleak future.

In the next three decades, Ghana’s population is expected to soar to 50 million—an increase of nearly 70% from 2023 figures. This rapid growth brings immense potential but also significant risks. Without decisive leadership and policies that foster long-term investments, Ghana risks being overwhelmed, particularly in its already overcrowded cities. The old playbook—marked by state interference, corruption, and neglect of economic growth—will not meet the needs of a burgeoning population.

Instead, it will erode trust in leadership. Leaders who cling to outdated policies will face an increasingly restless citizenry, whose expectations for improved living standards will only intensify. It is thus not only prudent to address these challenges – it is also wise for political stability and sustainable progress.

The Ghana Compact for Political and Economic Transformation has emerged as a bold response to the nation’s governance and development challenges. It aims to forge a new social contract, uniting citizens and government around a shared vision.

One of its most urgent priorities is addressing the youth employment crisis. Why? Because job creation and skills development do more than provide livelihoods—they lay the foundation for sustained economic growth, political stability, and social cohesion.

The Compact highlights key challenges around our employment crisis, including a persistent skills mismatch, an educational system that operates in silos, and graduates ill-prepared for the workforce. These challenges are not unique to Ghana. Yet many other countries, like Malaysia and Singapore, have leveraged this to demonstrate the transformative power of human capital development. By aligning education systems with industry needs and leveraging strategic public-private partnerships, these countries have rapidly industrialized and empowered their youth to lead.

Ghana’s last National Employment Policy (NEP) was crafted in 2012 to guide us through 2016. That was nearly a decade ago. Since then, the labor market has transformed dramatically, and our policies haven’t kept pace. Agriculture needs innovation, technology is outpacing us, and the Fourth Industrial Revolution is reshaping industries worldwide.

Yet, we are still waiting for the next strategy while our youth bear the brunt of this inertia. Figuring out what to do is not challenging; many resources exist to show what young people, workers, and industries need. Our handicap is not due to a lack of knowledge. Ours, like peers on the continent, is a challenge of implementation.

If Ghana is to rise to meet its economic challenges and provide meaningful jobs for its young and rapidly growing population, bold leadership is essential. Ghana must position itself as regionally and globally competitive—a hub that attracts investment, talent, and innovation.

This will require more than tweaks to the status quo. It calls for a fundamental shift in how the economy operates. Instead of relying on foreign aid, Ghana must embrace trade and attract capital. Instead of nurturing patronage systems and personalized networks, the country must prioritize merit, transparency, and enterprise. The true engine of growth will be a vibrant private sector, not a bloated public sector focused on redistribution. For this to happen, policy must focus on creating the conditions for businesses to thrive: reducing bureaucracy, improving infrastructure, and ensuring stable economic policies that inspire investor confidence.

Underpinning all of this is a non-negotiable imperative: urgency. The population is growing faster than the job market can absorb, and delays will only make the problem harder to solve. Leaders must act now—because once the wave of unemployed youth crests, no amount of policy ambition will reverse the tide. Job creation is not just a goal; it is now a race against time.

So, to that young woman in Tamale, or the aspiring entrepreneur in Accra, let’s send a message: Ghana sees you, values you, and is ready to invest in your future. This means we need a plan that supersedes political manifestos and election cycles. We need a playbook from which transient elected officials can take cues.

The Ghana Compact and outcomes of the June 2024 Citizens Convention, both a reflection of citizens’ priorities from around the country, offer that. It is about creating a long-term blueprint for good governance, fiscal discipline, campaign finance reform, and decentralization – the problems that plague Ghana’s maturing democracy. This method of engaging and sustaining citizen engagement will also help mature Ghana’s democracy from focusing chiefly on election seasons to a more substantive way of managing affairs between elections.

The proposed National Convention – an urgent call for President-elect H.E John Dramani Mahama to bring together young leaders, political representatives, traditional authorities, and civil society to commit to harmonise government policies, establish a lasting consensus on the future Ghanaians want and formally endorse the Citizens’ Declaration of a Social Contract – will also send a much-needed powerful message of ‘unity, resolve, and commitment to a prosperous, peaceful future’, as aptly described by KY Amoako, convenor of the Compact.

Ghana’s recent election, and life beyond it, is an opportunity to reimagine leadership and governance. Our new President-elect must deliver more than promises; he and his chosen group of advisors and implementers must commit to building a social contract that uplifts every Ghanaian beyond their term limit, ensuring a future that is prosperous, inclusive, and sustainable.

Marie-Noelle Nwokolo is a researcher on growth and economic development. She writes in her capacity as a concerned but deeply optimistic Ghanaian.

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