The Nexus between Population Growth and Unemployment in Ghana. An Empirical Analysis.


  • Otu Larbi-Siaw



There has been a serious employment deterioration in Ghana which has heightened concerns about the inability of the economy to generate enough work opportunities for the growing labour force in the country. In general, employment is a complex challenge so the creation of new jobs is a multi-sector phenomenon that includes macroeconomic policies, fair business policies, education policies, social policies, etc. This study is therefore aimed at investigating the relationship between population growth and unemployment in Ghana using data spanning a period of 21 years from 1993-2013. The main independent variable population growth rate has an insignificant relationship with unemployment, but a positive coefficient signifying any growth in population will add to unemployment. The explanatory variables accounted for 22.57 percent of the variation in unemployment during the period of study with the error term accounting for the remaining 77.43 percent. Two of the independent variables (FDI & money supply) have a significant effect on unemployment. The latter and the former both displaying negative coefficients. FDI inward flows will help create jobs for the unemployed population and money supply will reduce unemployment as it creates avenues for entrepreneurship and self-employment i.e. when households have access to money. Money supply should be better channeled in the long run and controlled in the short run. With a population growth rate, there is expected to increase unemployment, an issue which must always stand inversely in relation with each other.


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How to Cite

Larbi-Siaw, O. (2015). The Nexus between Population Growth and Unemployment in Ghana. An Empirical Analysis. ADRRI Journal (Multidisciplinary), 23(23), 26-39.