Youth unemployment in Ghana stubbornly high at around 30% – IMF

The International Monetary Fund has reported that youth unemployment in Ghana remains persistently high, at approximately 30% for individuals aged 15-24. Despite certain safeguards, social conditions continue to pose challenges according to the IMF's country report on Ghana. Meanwhile, the World Bank estimates that poverty levels, measured at $3 per day, have declined slightly to 37.1% in 2025 from 38.9% in 2022, a trend driven by disinflation and growth in the agricultural and service sectors.

Addressing the issue of youth unemployment, the IMF highlighted that Ghana's Medium-Term National Development Policy Framework (2026-29) prioritizes growth in labor-intensive sectors. However, the IMF also pointed out significant social protection gaps in Ghana that demand a sustained increase in funding and improvements in program effectiveness.

Although social spending has increased modestly under the Economic Commission for Africa framework, coverage and benefit levels remain low compared to needs and regional benchmarks.

The Livelihood Empowerment Against Poverty (LEAP) program, even after planned expansion, will only reach a small portion of the nearly 40% of Ghanaians living below the international poverty line. Education outcomes have improved, but enrollment rates, particularly at the secondary level, still fall short of Sustainable Development Goals targets, and quality indicators lag behind those of peer countries.

In the face of ongoing fiscal discipline, global uncertainty, and utility tariff adjustments, the IMF emphasized the importance of strengthening social safety nets and implementing well-targeted social policies to shield the most vulnerable from the adverse effects of macroeconomic shocks.