Population pressures: how population surge shapes employment access
Poor population management can severely affect job creation and limit citizens’ access to essential services. While some see population growth as a driver of economic progress by expanding the labour force, sustainable development is achievable only when population growth is balanced with strategic investments across the human life cycle.
Countries can build a resilient and skilled workforce that fosters economic stability and long-term growth, by prioritising timely investments in education, healthcare, and skills development.
This article, the fifth in the series on Human Resource to Human Capital: The Essence of Population Management, delves into the effects of rapid population growth on national development, particularly in employment creation and equitable access.
Understanding the Dependency Burden
A nation’s economic progress relies on a productive populace capable of generating adequate tax revenue to maintain essential public services for all citizens. Ideally, individuals across income levels should have enough purchasing power to acquire goods and services, contributing to a broader tax base.
In Ghana, however, while the real estate sector is growing, occupancy rates remain low; not due to a lack of housing demand but because property prices far exceed the earnings of most workers.
This gap between income and housing costs limits access to homeownership and rental options, confining the market to a small, well-to-do segment of society. Such conditions point to issues of poor population management, where a growing populace without equitable income growth promotes economic inequality and places greater pressure on public resources.
If left unattended, this mismatch threatens to widen social disparities and undermine the stability crucial for sustainable development.
In many developed nations, the working-age population outnumbers dependents, creating a tax base that drives growth. In Ghana, however, 100 working-age individuals support 66 dependents, compared to just 46 in China.
This high dependency ratio, worsened by rapid population growth, puts additional pressure on Ghana’s workforce and deepens unemployment challenges. While countries with lower dependency ratios can more easily leverage their workforce for accelerated development, Ghana’s unchecked population growth contributes to a large unemployed population, straining already limited resources.
Social issues, including high rates of teen pregnancies, unmet family planning needs, and child marriages, further increase dependency on an already stretched tax base, intensifying economic pressures.
Graduate Unemployment and Job Market Mismatch
One pressing issue in Ghana’s labour market is graduate unemployment. Each year, more than 100,000 graduates enter the job market, significantly outnumbering available jobs. With a population growth rate of 2.1 percent, Ghana sees a daily net increase of over 1,700 people (2,400 babies are born and 688 people die every day).
Juxtaposing the number of children born with the jobs created, it becomes clearer how population growth exacerbates the unemployment problem, sustained by national policies that either by default or design fail to address population dynamics as a critical component of sustainable development.
The Ghana Population and Housing Census indicates that 13.4 percent of the economically active population is unemployed. This large pool of unemployed persons on the sidelines makes it difficult for those in employment to negotiate better wages, salaries, or working conditions, as they fear being replaced by the growing number of unemployed.
When job opportunities are scarce, citizens not only face unemployment but are forced into precarious employment, often in the informal economy, where wages are low and job security is non-existent. This creates a vicious cycle where low wages prevent workers from contributing meaningfully to the tax base, hindering national development and increasing economic inequality.
Harnessing Data for Employment Solutions
In comparison, China’s success in quickly absorbing graduates into the workforce; 95 percent within a year of graduation; provides a stark contrast to Ghana. Through data-driven policy interventions, China has effectively reduced its dependency ratio, increased tax revenue, and propelled development. Data insights have been central to China’s achievement, yet Ghana faces major challenges in leveraging data across sectors.
For example, how many professional institutions or universities in Ghana track data on their alumni? A critical metric would be knowing alumni employment six months post-graduation.
Are institutions aware of where their graduates work and how this could support future networking or partnerships? Without tracking alumni data, Ghanaian institutions miss opportunities to build a supportive network that enhances institutional reputation and student outcomes.
Likewise, few businesses in Ghana maintain data on former employees, even those who left on good terms. Tracking former employees’ career paths can provide valuable networking, recruitment, or collaboration opportunities. Yet, this valuable resource remains largely untapped, which ultimately represents lost human capital potential that could drive future ventures.
Effect of Unemployment
The lack of job opportunities has broader societal implications. Environments with limited resources and opportunities often foster corruption. For example, with Ghana’s significant school-going population and limited top-grade schools, families may feel pressured to engage in corrupt practices to secure placements. Moreover, as job scarcity intensifies, only the wealthiest can access limited opportunities, widening the inequality gap.
Economic inequality also correlates strongly with crime. According to the Ghana Public Safety and Crime report, common crimes such as illegal arms possession, robbery, fraud, and aggravated assault often stem from economic hardship. The growing divide between the employed and unemployed contributes to desperation, driving up crime rates.
Moreover, with limited prospects, a large unemployed youth population is vulnerable to radicalisation, particularly young men not engaged in education, training, or employment. This underscores the urgent need for targeted government action to address both the causes and consequences of population growth on employment.
Conclusion
The current piecemeal approach to social issues is financially draining for the government while failing to address root causes. It is essential for policymakers to identify the core factors influencing population growth; including child marriages, teen pregnancies, and lack of family planning; and prioritise these areas within a broader framework for sustainable development.
Moreover, adopting strategies from successful nations, which reduced dependency ratios and expanded employment opportunities through targeted policies, could empower Ghana to create a more inclusive and resilient economy.
With a skilled and productive workforce, Ghana has the potential to shift from reactive measures to proactive strategies, transforming its demographic challenge into an asset. Addressing rapid population growth through comprehensive employment and educational reforms is vital to prevent further strain on resources and reverse Ghana’s course towards a prosperous, equitable society.
Isaac is a Researcher and Consultant