More Job Losses in Ghana
By: Ama Amankwah Baafi
Ghana Daily Graphic
Wednesday, 03 September 2014 11:00
In spite of the rising real unemployment levels in the economy, employers in the formal sector continue to throw people out of jobs due to redundancy.
By the first half of the year, 1,764 workers had been made redundant by 61 institutions, mainly, due to their attempt to control cost, latest figures from National Labour Department (NLD) indicate.
Last year, 141 companies declared 3,995 workers redundant and, therefore, sent them packing, while in 2012, 594 workers in 36 institutions were laid-off.
Reasons for redundancy
The institutions, which included pharmaceutical companies and those in the mining, insurance, construction and hospitality industries, cited various factors, including restructuring, end of project, financial constraints and high cost of production in the manufacturing sector as some of the reasons informing their retrenchment exercises.
The Head of the Employment and Statistics Unit of the NLD, Mr Anthony Awotwe, who disclosed this to the GRAPHIC Business, said rationalisation of work processes (re-organisation), introduction of new technology and falling prices of commodities on the international market were also among the reasons for sending home those workers.
Placements
In contrast with the redundancies, only 1,861 employment placements were made through the department between January and June this year, while a total of 4,690 workers were employed last year. In 2012, the figure was 8,093, all made through the public employment centres (PECs) of the NLD, Mr Awotwe said.
Joblessness
However, this situation is a microcosm of a bigger worsening unemployment situation in the country.
For instance, a report by the National Council for Tertiary Education (NCTE) states that a minimum of 66,500 graduates join the search for jobs each year. On the other hand, data from the Social Security and National Insurance Trust (SSNIT) indicate that there are only 40,000 new formal sector jobs for the 66,500 graduates churned out of the country’s tertiary institutions each year.
The statistics suggest that 40 per cent of fresh graduates face possible unemployment unless they create their own jobs.
The report indicates that between 2007 and 2011, active contributors to SSNIT increased by 20 per cent over the period or five per cent per annum (equivalent to 40,000 new jobs each year). Therefore, while job seekers are growing at almost 20 per cent per year, the job market is growing at only five per cent per year, the report stated.
“In actual numbers, there are 66,500 new graduates chasing 40,000 new jobs each year. The leftover graduates from each year join an ever increasing pool chasing the limited number of jobs,” the report says.
2010 Census on employment
The 2010 census revealed that out of the total population of 24,658,823, only 43.9 per cent (10,825,223) were economically active. The number represents those who are 15 years and above.
The census indicates that only about 41.5 per cent of the population is employed.
However, using a United Nations definition, the 2010 census extrapolates that the unemployed population of15 years and above is 5.3 per cent. In 1984, it was 2.8 per cent and increased to 10.4 per cent in 2000.
Those who within seven days of the census night had no fixed jobs, were not seeking jobs and were not available for work are described as unemployed.
Self-employed population (15 years plus) declined from 80.6 per cent in 2000 to 65.9 per cent in 2010.
The National Labour Department
The NLD has a responsibility to enforce labour standards, promote bi-partite and tri-partite social dialogue and provide labour market information statistics in collaboration with other government agencies for human resources planning, development and utilisation.
It also has a function to provide advice on employment and labour policy and all matters relating to labour, administer labour laws, administer and operate the national employment service and provide placement, vocational guidance and counselling and labour market information.
Mr Awotwe said some of the companies which declared redundancies might have workers with skills that were indispensable and so may not be retrenched.
He explained that some affected workers were likely to get jobs, especially if they acquired some skills in their previous job.
“So equally, those who are laid off may have their skills tapped,” he said.
He explained that persons seeking employment should apply to the PECs, while employers, both in the public and private sectors, were required under the labour law to notify the centres of opportunities available and the number of persons and skills needed.
“Such employment seekers may be working or not. The labour officer will do the first selection, vis-à-vis the applications and the requirement, then forward that to the employer to do the final selection.
Afterwards, the employers are expected to write back to the labour officers at the centres, stating the number of persons engaged and terms of engagement,'' he said.
Private participation in the employment process
Private employment agencies are registered under the law and granted licence to participate in the employment exercise.
So far, 169 private recruitment agencies are operating nationwide, while 299 have applied for licences. There are also foreign recruitment agencies. GB
Writer’s email: ama.baafi@graphic.com.gh
- See more at: http://graphic.com.gh/business/business-news/29965-more-job-losses-in-first-half.html#sthash.oURjNyrf.dpuf
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| Ghana workers demonstrate against economic conditions. |
Ghana Daily Graphic
Wednesday, 03 September 2014 11:00
In spite of the rising real unemployment levels in the economy, employers in the formal sector continue to throw people out of jobs due to redundancy.
By the first half of the year, 1,764 workers had been made redundant by 61 institutions, mainly, due to their attempt to control cost, latest figures from National Labour Department (NLD) indicate.
Last year, 141 companies declared 3,995 workers redundant and, therefore, sent them packing, while in 2012, 594 workers in 36 institutions were laid-off.
Reasons for redundancy
The institutions, which included pharmaceutical companies and those in the mining, insurance, construction and hospitality industries, cited various factors, including restructuring, end of project, financial constraints and high cost of production in the manufacturing sector as some of the reasons informing their retrenchment exercises.
The Head of the Employment and Statistics Unit of the NLD, Mr Anthony Awotwe, who disclosed this to the GRAPHIC Business, said rationalisation of work processes (re-organisation), introduction of new technology and falling prices of commodities on the international market were also among the reasons for sending home those workers.
Placements
In contrast with the redundancies, only 1,861 employment placements were made through the department between January and June this year, while a total of 4,690 workers were employed last year. In 2012, the figure was 8,093, all made through the public employment centres (PECs) of the NLD, Mr Awotwe said.
Joblessness
However, this situation is a microcosm of a bigger worsening unemployment situation in the country.
For instance, a report by the National Council for Tertiary Education (NCTE) states that a minimum of 66,500 graduates join the search for jobs each year. On the other hand, data from the Social Security and National Insurance Trust (SSNIT) indicate that there are only 40,000 new formal sector jobs for the 66,500 graduates churned out of the country’s tertiary institutions each year.
The statistics suggest that 40 per cent of fresh graduates face possible unemployment unless they create their own jobs.
The report indicates that between 2007 and 2011, active contributors to SSNIT increased by 20 per cent over the period or five per cent per annum (equivalent to 40,000 new jobs each year). Therefore, while job seekers are growing at almost 20 per cent per year, the job market is growing at only five per cent per year, the report stated.
“In actual numbers, there are 66,500 new graduates chasing 40,000 new jobs each year. The leftover graduates from each year join an ever increasing pool chasing the limited number of jobs,” the report says.
2010 Census on employment
The 2010 census revealed that out of the total population of 24,658,823, only 43.9 per cent (10,825,223) were economically active. The number represents those who are 15 years and above.
The census indicates that only about 41.5 per cent of the population is employed.
However, using a United Nations definition, the 2010 census extrapolates that the unemployed population of15 years and above is 5.3 per cent. In 1984, it was 2.8 per cent and increased to 10.4 per cent in 2000.
Those who within seven days of the census night had no fixed jobs, were not seeking jobs and were not available for work are described as unemployed.
Self-employed population (15 years plus) declined from 80.6 per cent in 2000 to 65.9 per cent in 2010.
The National Labour Department
The NLD has a responsibility to enforce labour standards, promote bi-partite and tri-partite social dialogue and provide labour market information statistics in collaboration with other government agencies for human resources planning, development and utilisation.
It also has a function to provide advice on employment and labour policy and all matters relating to labour, administer labour laws, administer and operate the national employment service and provide placement, vocational guidance and counselling and labour market information.
Mr Awotwe said some of the companies which declared redundancies might have workers with skills that were indispensable and so may not be retrenched.
He explained that some affected workers were likely to get jobs, especially if they acquired some skills in their previous job.
“So equally, those who are laid off may have their skills tapped,” he said.
He explained that persons seeking employment should apply to the PECs, while employers, both in the public and private sectors, were required under the labour law to notify the centres of opportunities available and the number of persons and skills needed.
“Such employment seekers may be working or not. The labour officer will do the first selection, vis-à-vis the applications and the requirement, then forward that to the employer to do the final selection.
Afterwards, the employers are expected to write back to the labour officers at the centres, stating the number of persons engaged and terms of engagement,'' he said.
Private participation in the employment process
Private employment agencies are registered under the law and granted licence to participate in the employment exercise.
So far, 169 private recruitment agencies are operating nationwide, while 299 have applied for licences. There are also foreign recruitment agencies. GB
Writer’s email: ama.baafi@graphic.com.gh
- See more at: http://graphic.com.gh/business/business-news/29965-more-job-losses-in-first-half.html#sthash.oURjNyrf.dpuf
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