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TUC raises alarm over jobs crisis, low wages at May Day celebration in Koforidua

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The Secretary-General of the Trades Union Congress (TUC), Joshua Ansah, has called on the government to urgently tackle Ghana’s deepening employment crisis, warning that the situation is nearing critical levels.

Speaking at the 2026 May Day celebration in Koforidua, Ansah expressed organised labour’s appreciation for recent engagements with government, including discussions held at Jubilee House on key labour concerns such as salaries and pensions.

He stressed the importance of sustained dialogue between government and organised labour, noting that regular engagement is essential to maintaining industrial harmony and addressing pressing national challenges.

Focusing on the theme of this year’s celebration
“Pivoting to Growth, Jobs, and Sustainable Livelihoods Beyond Macroeconomic Stability”, Ansah described unemployment, particularly among the youth, as one of Ghana’s most serious socio-economic threats.

“I say without fear of contradiction that the lack of decent employment remains one of the most significant problems in Ghana today,” he stated, warning that if left unchecked, it could evolve into a major political crisis.

According to him, despite decades of economic growth measured by GDP, many young graduates are unable to secure jobs that match their qualifications, often waiting up to five years or more before landing their first employment.

He cited data indicating an overall unemployment rate of about 13 percent, with youth unemployment soaring to 34 percent.

Even more concerning, he noted, is that nearly 80 percent of employed Ghanaians work in the informal sector, often without job security or social protection.

Beyond unemployment, Ansah highlighted the poor quality of available jobs as a major concern.

He explained that many workers earn low incomes, operate in unsafe environments, and lack access to social security and pensions.

He also criticised the increasing shift by employers from permanent positions to fixed-term contracts with fewer benefits, describing it as a worrying trend that undermines job security.

“The challenge is not only unemployment,” he emphasised, “but also the reality that many of those who are working remain underpaid, insecure, and insufficiently protected.”

Ansah urged government to move beyond macroeconomic stability and focus on policies that directly improve the lives of citizens.

“Macroeconomic stability is not an end in itself,” he said. “The real test is whether it creates jobs, raises incomes, and secures sustainable livelihoods.”

He called for a review of Ghana’s national employment policy first introduced in 2015 to reflect current realities and better address the needs of job seekers.

The TUC also proposed initiatives to boost productivity, including the introduction of a national productivity week and a five-year programme to improve efficiency across sectors.

On economic policy, Ansah raised concerns about persistently high lending rates despite declining inflation.

He urged government to consider measures to reduce the gap between lending and deposit rates to make credit more accessible to businesses.

According to him, affordable financing is key to supporting domestic enterprises and driving job creation.

A major highlight of his address was the issue of low wages.

Ansah described current salary levels as inadequate to meet basic living needs, painting a stark picture of workers struggling to afford food, rent, and utilities.

He called for the adoption of a “living wage” policy to ensure that workers can maintain a decent standard of living.

While welcoming plans to establish an Independent Emoluments Commission, he expressed concerns that it may not fully address the broader issue of low pay unless supported by a comprehensive income policy.

On pensions, the TUC Secretary-General lamented low coverage, noting that less than 20 percent of eligible Ghanaians are enrolled in pension schemes.

He also criticised disparities in the system, particularly situations where some public officials retire on full salaries without contributing.

Ansah called for urgent pension reforms, including unification of pension schemes, to ensure fairness and sustainability.

He reiterated that Ghana must pursue growth that delivers tangible benefits to its citizens.

“Ghana does not need macroeconomic stability alone,” he said. “We need stability that creates decent jobs, raises incomes, and improves livelihoods.”

His remarks set the tone for renewed discussions between government and organised labour, as workers across the country marked May Day with calls for meaningful economic reforms.

By 1960news.com

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