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Ghana: World Bank Outlines Policy Reforms to Address Youth Employment Crisis

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World Bank Outlines Policy Reforms to Address Youth Employment Crisis

Paschal Donohoe, Managing Director and Chief Knowledge Officer at the World Bank Group, has called on Ghana and other developing economies to implement targeted policy reforms to address the growing youth employment challenge.

He warned that many low- and middle-income countries are approaching a critical turning point, as millions of young people prepare to enter the labour market without the skills required for sustainable employment.

According to Donohoe, without sustained investment in education, vocational training, and skills development, a significant portion of the emerging workforce risks being excluded from meaningful job opportunities—posing broader threats to economic growth and social stability.

He urged governments, policymakers, and educational institutions to prioritise reforms that equip young people with practical, job-ready skills aligned with the evolving demands of the global economy.

Speaking to students at the University of Ghana on March 16, 2026, Donohoe highlighted the scale of the challenge, pointing to persistent gaps in foundational learning across developing nations.

“Across low- and middle-income countries today, seven in 10 ten-year-olds cannot read a simple, age-appropriate text,” he said. “More than three billion adults have less than lower secondary education, and in the next decade alone, 1.2 billion young people will enter labour markets in developing countries, most without the skills.”

He emphasised that these figures reflect not just statistical trends, but real human and economic consequences.

The engagement formed part of a broader visit aimed at discussing global economic trends, the future of work, and the role of education in shaping employment outcomes.

Donohoe noted that Ghana’s challenges are representative of a wider global pattern, reinforcing the need for coordinated, forward-looking policy responses across developing economies.

The World Bank Group has also indicated its commitment to supporting initiatives that can help create employment opportunities, including efforts to enable Ghana to generate jobs for more than 500,000 young people annually.

Overall, the call for reform underscores the urgency of bridging the gap between education systems and labour market needs, as countries seek to harness the potential of their growing youth populations for long-term economic development.

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