Ghana’s informal sector holds 80% of jobs; contributes just 27% to GDP – GSS

The Ghana Statistical Service’s first National Report on Productivity, Employment, and Growth reveals a significant productivity gap in Ghana’s economy.

Although nearly 80% of the workforce is in the informal sector, it contributes only 27% of GDP. The report highlights low productivity, underemployment, and stagnant wages in this sector, despite labor productivity growing by 3.2% annually from 1991 to 2019.

While sectors like mining, finance, and manufacturing have shown gains, the informal sector lags.

The report also notes a widening gap between productivity and wages, with better wage growth in finance versus household agriculture and trade.

To address these challenges, the report calls for increased industrial investment, commercial agriculture expansion, technology adoption, and workforce upskilling to spur economic growth and reduce inequality.