Labour Market Dynamics, Unemployment And Economic Growth...

LABOUR MARKET DYNAMICS, UNEMPLOYMENT AND ECONOMIC GROWTH IN GHANA INTRODUCTION Owing to a GDP rebasing in 2011, Ghana became the fastest growing economy in the world with a GDP growth pinned at 20%, the largest per capita income in West Africa and the 21st in the continent. Ghana joined the league of oil producing countries in December 2010 with 85,000 barrels of crude oil in a day . Fiscal deficit fell from 5.9% of GDP in 2010 to an estimated 4.3% in 2011 due to strong revenue performance . Despite an impressive increase in economic growth rate over the years, the Ghanaian economy is still characterized by low employment rate and low labour productivity rate as against the relatively increasing growth rate of population. Unemployment rate in Ghana has varied over the years averaging 8.82% from 2001 until 2013. It reached an all-time high of 12.90% in 2005 and a record low of 5.20% in 2013 . Ghana’s unemployment rate is 25.6% for the younger age group between 15 and 24 years twice that of the 25-44 age group and three time that of the 45-64 age group . This is a perfect indication that recent gains in Ghana’s economy growth have not translated adequately into job opportunities, especially in the formal sector. Unemployment is a phenomenon that occurs when a person who is actively searching for employment is unable to work . The most common measure of unemployment is the unemployment rate. Method of calculating and presenting unemployment rate differs from one country toShow MoreRelatedThe Cost Of Real Money1690 Words   |  7 PagesIS-LM diagram (our earlier Figure 4), when IS-LM centers on the full employment output level so that Y* = YF, then the labor market clears and thus there are apparently no inherent dynamics to imply a rise in wages. 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