Your 2.2 million jobs does not translate into GDP growth-YAFO jabs Bawumia

YAFO disagrees with the vice President H.E. Dr. Mahamudu Bawumia that the New Patriotic Party(NPP) has created some 2.2 million jobs, YAFO disagrees.

Creation of jobs, according to YAFO Institute ought to stimulate economic growth thereby increasing purchasing power of individuals.

That, according to YAFO Institute, must set the path for creating demand for goods and services.

It further explained that the acclaimed 2.2 jobs should have led to increased production, sales and revenue thereby impacting the economy but the situation is different.

"The statement by the Vice President of Ghana, Dr. Mahamudu Bawumia while speaking to New Patriotic Party (NPP) supporters during a health walk in Mpreaso that NPP government has created 2.2 million jobs between 2017 and 2022 is not one that has brought about economic growth.

YAFO Institute further observed that the vice president's statement was based on his own fact without reference to budget statement within the same period or any other reference.

The group's concern was contained in a press statement aimed at providing clarity on the nature of 2.2 million jobs claimed by the vice president and their impact on economic growth.

"We also assume that the data given by the vice president is true. The Ghana Living Standard Survey round 7 defines employment (work) as any economic activity performed during the reference week that contributes to the economic production of goods and services for pay or profit. The claim from Dr. Bawumia on 2.2 million jobs ignored the impact on economic growth. It is trite that once you create jobs, economic growth must respond positively. However, our sad reality has an inverse relationship between job creation and economic growth in Ghana",it added.

According to World Bank, Ghana’s GDP growth rate had decreased from 8.1% in 2017 to 3.2% in 2022 with the unemployment rate increasing from 4.22% in 2017 to 4.7% in 2021.

"Should the creation of 2.2 million jobs within this period result in a decrease in the growth rate and unemployment rate or otherwise?", it questioned.

"The increase in employment (2.2 million according to Dr. Bawumia) does not translate into an increase in the GDP growth rate or a reduction in the unemployment rate in Ghana",YAFO further added.

Again,YAFO stated that the 2.2 million jobs from Dr. Bawumia showed an overly expanded government workforce.

The group clarified that most employment created were at the various Ministries (32), Office of Government Machinery, Office of Attorney-General and Ministry of Justice and Internal Audit Agency with a political outlook.

It further observed that the nature of the said jobs created were undoubtedly politically oriented and individuals get fired once there is a change of Government.

In conclusion, YAFO decried the large size of government attributing it as the major concern in the midst of deepening economic woes of the country hence the urgent need for a Domestic Obligation Exchange Programme with IMF.