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Kofi Tonto attributes rising unemployment Ghana to population growth despite Government’s Job creation efforts

Kumasi Mail by Kumasi Mail
August 20, 2024
in News
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Kofi Tonto attributes rising unemployment Ghana to population growth despite Government’s Job creation efforts
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Kofi Tonto, a political aide to the Vice President and flagbearer of the ruling New Patriotic Party (NPP), has attributed the increasing unemployment rate in Ghana to the country’s rapid population growth, despite significant government efforts to create jobs.

Speaking on Abusua FM monitored by www.kumasimail.com Kofi Tonto highlighted that the government has created approximately 2.3 million jobs since taking office in 2017. However, he acknowledged that unemployment remains a pressing issue, particularly among the youth.

“We have created a lot of jobs for Ghanaians. The government has helped to create 2.3 million jobs; however, there are still many youths unemployed at home,” Tonto stated.

He explained that the country’s population growth, which has increased by 5 million people over the past eight years, has exacerbated the demand for jobs. “This tells us that the number of people is increasing, so the number of jobs needed to fill that gap will also increase,” Tonto added.

When questioned about the current unemployment rate, which stands at 14% despite the creation of millions of jobs, Tonto pointed to global economic challenges and the impact of the COVID-19 pandemic on small and medium-sized enterprises (SMEs).

“The unemployment rate will rise due to the effect we had on the global economy. I’ve also told you that SMEs employ the most people. If you look at SMEs, the COVID-19 pandemic affected a lot of small-scale businesses. So if you don’t support your small businesses, you can’t help reduce unemployment,” he explained.

Mr. Tonto further illustrated the paradox of job creation during economic downturns, noting, “If the government is creating jobs by helping to employ 10 people while also assisting others, and then a pandemic strikes that causes at least 1 to 6 businesses to collapse, even though you’re helping people get employed, many will still be at home due to the crisis.”

In response to these challenges, Tonto emphasized the Vice President’s commitment to supporting SMEs. He noted that Dr. Bawumia’s promise to establish a business bank for SMEs is a strategic move to bolster these enterprises, which are vital to the nation’s economy.

“Now what’s necessary is how the government can help improve a lot of businesses in the shortest amount of time.

That is why our target is to help SMEs, as that’s where our mothers’ businesses are involved. We aim to create a business bank for SMEs and also implement a rural program through the Women’s Fund to support our mothers, which will help strengthen their businesses,” Tonto concluded.

Source: www.kumasimail.com/Kwadwo Owusu

Tags: Bawumia aidgrowthkofi Tontopopulation
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