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BY

KRAKAH ANTHONY
IBES PROJECT COORDINATOR, GSS

LA PALM ROYAL BEACH HOTEL


14TH JUNE, 2016

Copyright @ Ghana Statistical Service, 2015


Outline of presentation
 Introduction
 Why conduct IBES?
 Basic Concepts of IBES
 Who was counted?
 How did we conduct IBES I?
 What information was collected?
 Outputs of IBES I

Copyright @ Ghana Statistical Service, 2015


Introduction
 Integrated Business Establishment Survey Phase I (IBES I)
was an economic census covering all sectors of the
Ghanaian economy.
 This was the first non-household census ever to be
conducted on all sectors of the Ghanaian economy
 The sectors are:
 Industry
 Services
 Agriculture
 Previous non-household censuses (1962, 1977, 1987, 2003)
focused only on the industry sector - Industrial census
 IBES I was conducted in 2014

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Why conduct IBES?
 Produce a register of businesses in Ghana that will meet
the needs of policy makers, other private sector users,
and researchers.
 Provide a sampling frame necessary for the conduct of
frequent economic surveys and second Phase of IBES.
 Ensure that businesses engaged in the informal sector
who are mostly micro, small, and medium scale
establishments, which hitherto were not covered in
most databases of institutions, are covered.
 Obtain benchmark data on the structure of businesses
in Ghana.

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Basic concepts of IBES
 An establishment: a unit of production or service
engaged in a single kind of activity under a single
ownership at a single fixed location
 A non-household establishment has a fixed location,
operates from a structure NOT predominantly used for
domestic activities.
 Persons engaged
 Establishment Size:
 Micro 1-5 persons
 Small 6-29 persons
 Medium 30-100 persons
 Large >100 persons

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Basic concepts of IBES cont.
 Formal establishments: These are those that have
registered with Registrar-General’s Department (RGD) and
operate a formal account
 An informal establishment is one that has not registered
with the RGD and does not operate a formal account.
 Sector classification establishments is based on ISIC Rev4.
 Age of establishments: this is defined based on the year of
commencement of business
 Skilled workers are those who have been trained on the
work that they do
 Unskilled workers are persons that are not trained in
relation to the work they do.

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Who was counted?
 All non-household establishments
i. All units of production whose physical location is
fixed and can be described and traced;
ii. All stores/containers not used primarily as residences
for households;
iii. All fitting shops, fabrication shops, carpentry shops,
block making factories, etc., whether housed in a
complete structure or not;
iv. All churches/temples/mosques located in a
permanent structure;

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Who was counted? Cont.
 All businesses with signposts/sign boards/indications of
business activities;
 All public sector institutions;
 All institutional agriculture - institutions (housed in a
structure) engaged in agriculture-related activities
 All shops/stores/units of production which are visible
outside the residential premise/attached to the
residential premise, but that have access for entry or exit
by customers

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Who was counted? Cont.
 All shops in a complete structure (popularly called a
store) in the market place;
 All stalls in the market place with occupants operating
permanently (i.e. 5 to 6 days a week).
 These stalls could either be hired/rented or purchased
 All educational institutions (both public and private)
 All health facilities, e.g. hospitals/clinics/maternity
homes, etc., in a fixed location.

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Who was NOT counted?
o All mobile businesses, e.g. hawkers;
o Traders in open spaces;
o Traders in homes where shops are NOT visible;
o All trading units, which are mainly retail shops selling
on small tables under sheds, e.g. market sheds, stalls
without permanent (i.e. 5 to 6 days a week) occupants;
o Shrines without structures;
o Brothels;
o Churches in school buildings/churches without a permanent
structure

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How did we conduct the exercise?
 Creation of enumeration zones (EZ) that covered every
locality in Ghana
 Enumeration zones were created using;
 Census Supervisory Areas
 Census Enumeration Areas
 Each EZ was assigned to an enumerator
 Supervisors were assigned to a number of enumerators
 Zonal coordinators were also assigned to supervisors
 Publicity was done extensively

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What data were collected?
 Name of the establishment;
 Description of the physical location;
 Contact information (postal address, email address,
website address, phone number);
 Form of organization;
 Type of legal organization;
 Type of ownership;
 Sex of owner;

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What data were collected? Cont’d.
 Subsector of establishment;
 Principal activity;
 Secondary activity;
 Number of persons engaged;
 Level of skill of persons engaged;
 Employment creation;
 Type of accounting records kept;
 Year of commencement of the establishment.

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Outputs of IBES I
 Sampling frame for economic surveys
 Business register
 Reports on
 Employment
 Job creation
 Summary statistics on IBES I
 Regional spatial report***
 District business register***

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THE RESULTS
(SUMMARY, EMPLOYMENT,
&JOB CREATION REPORTS)

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THE Summary
report

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BY

Prof. Samuel K. Anim, Univ. of Cape Coast, Cape Coast

14TH JUNE 2016

Copyright @ Ghana Statistical Service, 2015


Outline

 Number and Sectoral Distribution of Establishments

 Regional Distribution of Establishments

 Formal and Informal Establishments

 Size of Establishments

 Ownership of Establishments

 Legal Status of Establishments

 Age of Establishments

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Establishments in Ghana – Number and Sectoral Distribution

 Total Number of Establishments - 638,234 • About eight out of every ten


establishments are in the Services
sector
0.4 %,
(2,831)
• Close to a fifth are in the Industry
17.0 %,
(108,242)
sector

• Less than one per cent are in the


Agricultur Institutional Agriculture sector
e
Industry

Services • Predominantly single


establishments
82.6 %,
(527,161)
 Overall – 84.4%
 Agriculture – 68.2%
 Services – 83.3%
 Industry – 90.1%

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Establishments in the Services sector

Other Services 20.0


• More than half of economic
activities in the Services sector
Arts, Entertainment & Recreation 1.1
are wholesale and retail trade
Human Health & Social Work 1.2
– These economic activities
Education 5.8 have ‘zero’ added value
Service subsector

Public Administration & Defence 0.7


Administrative & support Service
Activities
1.2 • Real estate has the least number
Professional, Scientific & Technical 1.4
of establishments (0.1%).
Real Estate 0.1
• Key sub-sectors like Health,
Financial & Insurance 1.4
Education, Finance and
Information & Communication 0.8 Insurance and Information and
Accommodation & Food 10.7
Communication jointly, have less
than 10 per cent of the total
Transportation & storage 0.5
number of establishments in the
Wholesale & Retail Trade 55.1 Services sector
0.0 10.0 20.0 30.0 40.0 50.0 60.0
Per cent

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Establishments in the Industry sector
0.9%,
Manufacturing • In the Industry sector,
0.6%,
(621)
(953) manufacturing establishments
Mining &
0.5%, Quarrying dominate
(580) 6.1%,
(6,651) Electricity & Gas – Nine out of every ten
establishments in the
Water Supply, industry sector are engaged in
Sewerage , Waste
91.9%, Management
manufacturing activities.
(99,437) Construction
• About six out of every ten are
involved in construction
• The other three sub-sectors
namely, mining and quarrying,
electricity and gas, water supply,
sewerage and waste management
have establishments constituting
less than two per cent of the total
number of establishments in the
Industry sector.
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Establishments in the Agriculture sector

5.5%, 4.4%, • About three-fifth of


(124)
(155) establishments in ‘institutional’
Agriculture sector are engaged in
livestock and poultry.
32.3%,
(914)
• One out of every three
establishments are involved in
57.9%,(1 crop cultivation.
,638)

• Fishing and aquaculture has the


least number of establishments
in the ‘institutional’ Agriculture
Crops Livestock & Poultry sector.

Forestry & Logging Fishing & Aquaculture

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Regional Distribution of Establishments
200,000
 Almost a third (27.76%) of
177,153 establishments are in Greater Accra
180,000 Region
160,000
 About a fifth (19.37%) of establishments
in Ghana are in the Ashanti region
Number of establishments

140,000 123,644  This implies that almost half of the


establishments in Ghana are in Greater
120,000
Accra and Ashanti regions
100,000  Establishments in the three regions of
the northern part of the country
63,439

80,000
constitute 11.09 per cent of the total
58,766
52,975

number of establishments in Ghana


49,346
42,154

60,000
39,975

 What are the implications of this for the


40,000
balanced/unbalanced/growth pole
17,054

13,728

20,000
agenda for Ghana?
 What is the connection between this
0
Western Greater Accra Eastern Brong Ahafo Upper East
observation and current levels of
inequality in Ghana?
Region

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Formal and Informal Establishments
100.0  Nine out of ten establishments are
90.0
90.5 91.6 90.4 informal
 What is the growth potential?
80.0
75.1
 What are the tax implications?
70.0

60.0
 Pattern is consistent across all three
Per cent

50.0 sectors of the economy but with


variation in terms of level of
40.0
formal/informal establishment in the
30.0
24.9
case of Agriculture sector
20.0

10.0
9.5 8.4 9.6  Case of Agriculture sector is
potentially informed by the nature of
0.0
All Sectors Industry Service Agriculture the activity (mainly household) in
contrast to the definition
Sector Formal
Informal
(Institutional Agriculture)

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Formal and Informal Establishments - Cont’d
100%
 Proportion of formal establishments
across regions ranges between 4%
90%
and 17%
 Greater Accra is an outlier
Percentgae of formal and informal establishments

80%  Proportion of formal


70%
establishments in all the
other nine is less than 10%
60%
0.83
0.91 0.92 0.93 0.94 0.93 0.93 0.93 0.96
0.92 0.94  Within regions comparison of formal
50% and informal establishments shows
that Northern ranks first in terms of
40% proportion of informal
establishments.
30%

20%  On the other hand, Greater Accra


ranks first in terms of formal
10%
0.17
establishments
0.09 0.08 0.07 0.07 0.07 0.07 0.08
0.06 0.04 0.06
0%
 What is accounting for these
differences and what are the
Formal Informal implications?

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Size of Establishments
600,000
 Large-sized establishments >100
509,033  Medium-sized establishments 31-
500,000
100
 Small-sized establishments 6-30
Number of establishments

400,000

 Micro-sized establishments 1-5


300,000

 Four out of every five


200,000
establishments are micro in size
117,329
100,000

 Large establishments are less


9,333
0
2,539
than 0.5%
Micro Small Medium Large
 Can we drive growth with the
dominance of micro sized firms?
Establishment size

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Size of Establishment – Cont’d
1,400

1,200
1,232 • Concentration of establishments
in well-off regions (Greater
Number of establishments

1,000

800 Accra and Ashanti)


600

400 315
252
200 126 112
182
137
84 67 31
• Pattern of distribution of
0
Western Greater Accra Eastern Brong Ahafo Upper East establishments across regions is
Region
similar across the four size
160,000
142,221 categories
140,000

• About 50 per cent of the large


Number of establishments

120,000
101,041
100,000
80,000
sized establishments are in
60,000 49,883
42,644 47,687
38,679
Greater Accra
40,000 34,138 29,753
20,000 12,367 10,620 • Almost a third of the micro
0
Western Greater Accra Eastern Brong Ahafo Upper East sized establishments are also in
Region Greater Accra
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Ownership of Establishments
• For every 25 establishments, only one
4%
(25,536
is state owned
) • Are these state owned establishments
strategically and purposively
located/distributed?
• Of the 25,536 state-owned
establishments, 96 per cent are in the
Services sector; 3.0 per cent are in
96% Industry and the remaining 1% are in
(612, the “Institutional” Agriculture sector
698) • Ashanti region houses the largest
number of state-owned
State Owned establishments (15%) followed by
Eastern (11.99% (3,064)) and thirdly,
Private (including
PPP) Western (11.98% (3,060))

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Ownership of Establishments – Cont’d
• About four out of every five privately
owned establishments are in the Services
sector
17.6%, • Close to a fifth of the privately owned
0.4%, establishments are in the Industry sector
(2,622) (107,34
9) • In contrast to state owned establishments,
majority (almost a third) of privately
owned establishments are in Greater Accra
• Factors driving the siting of both privately
and state owned establishments and their
82.0%, implications for economic growth and
(500,86 development require investigation.
8) • 7,168 establishments are owned by non-
Ghanaians
• Most establishments owned by non-
Ghanaians are large sized establishments

Industry Services
Agriculture

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Legal Status of Establishments
Association/Groups 1.4
• About four out of every five
establishments have sole
Cooperative 0.1
proprietorship status. Thus, there is
Non-Governmental… 3.7 no legal distinction between the
Parastatal Government 0.1
owner and the business and only an
individual has the right to all the
Quasi-Government 0.3
profit from the business and is also
Other Governmental… 3.1 responsible for all the establishment’s
Statutory 0.4
liabilities.
– Does this suggest vulnerability?
Public Limited… 0.5
• Para-statal Organizations and
Private Limited… 4.4
Cooperatives have the least
Partnership 8 representation.
Sole Proprietorship 78

0 20 40 60 80 100

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Age of Establishments
• About two-thirds of the
establishments are relatively young
5% 3%
7%
• Only one out of twenty
establishments is at least 40 years old
18%

67% • Establishments in the Industry sector


are relatively young while those in the
Services and Agriculture sectors are
relatively old

• Large establishments are relatively


Before 1975 1975-1984 old while small and micro
1985-1994 1995-2004
establishments are relatively young
2005-2014

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NOW LET US FOCUS ON
EMPLOYMENT ISSUES BY
NON-HOUSEHOLD
BUSINESSES IN GHANA

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By

Anthony Krakah, IBES Project Coordinator, GSS

14th June 2016

Copyright @ Ghana Statistical Service, 2015


INTRODUCTION
 Employment in this report refers mainly to persons
engaged by establishments; it includes work for pay
and NOT for pay
 Data collected on persons engaged included:
 Permanent and temporal engagement
 Skill level
 Nationality
 Sex of employee

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3.4 million engaged in 2014
 In 2014,
3,383,206
persons were
engaged
 It excludes Female,
persons 1,344,174 ,
engaged in 40%
household Male,
agriculture 2,039,032
 Employment , 60%
is male
dominated –
need to do
more

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Private sector leads in employment …
 Nearly nine
out of ten 3,500,000

2,896,618
persons
engaged are 3,000,000

in the private
sector Persons Engaged
2,500,000

 Public sector

1,732,327
employs just 2,000,000
about a

1,164,291
tenth (14%)
1,500,000
 Sex
distribution
is similar 1,000,000
486,588

across
306,705

179,883
sectors 500,000

60/40
0
State owned Private owned (Including PPP)
Both sexes 486,588 2,896,618
Male 306,705 1,732,327
Female 179,883 1,164,291

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Where are the employed?
 Most jobs Non-household
are in the agriculture,
59,893, 2%
Sector: eight
out of ten
persons Industry,
 Services is 4 614,517, 18%

times
Industry
 Close to
20% are in
Industry Services,
 Institutional 2,708,796, 80%

agriculture
engages only
2%
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Greater Accra engages more than a third…
 More than one-

1,284,340
third (38%) of 1,400,000

employees are in
Greater Accra 1,200,000
region. More than
2 times Ashanti
1,000,000
 2 Regions -Accra
and Ashanti,
800,000
engage more than

540,471
half of employees
 Only 10% of 600,000
334,433

workers are in the

255,639
3 northern regions
232,078

230,809
400,000

183,375
171,823
 Upper West
employs the least

88,753

61,485
200,000
number of persons
in Ghana
0
 The populous Western Central Greater Volta Eastern Ashanti Brong Northern Upper Upper
region -Ashanti Accra Ahafo East West

employs 16%
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Employment and business size
 Large number
of micro firms
can contribute
to reduction in
Large
unemployment 25% Micro
 But large ones 33%
significantly
make the
difference
 Growing MSM Medium
13%
to become large
may be the
solution to Small
29%
unemployment

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How skillful are the workers?
 Close to a 100

quarter of 90 Unskilled, 20.1


Unskilled, 21.3 Unskilled, 21.6
workers are Unskilled, 28.3
unskilled 80

 Less skilled 70
workers in
Industry 60
than the
Percent

other 50

sectors 40 Skilled, 79.9


Skilled, 78.7 Skilled, 78.4
 Need to Skilled, 71.7
build 30

capacity in 20
order to
improve 10
output
0
Industry Agriculture Service All

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Job security in Ghana
 More than 100%
Temporary,
eight out of 90% Temporary, 14%
Temporary,
18%
Temporary,
16%
ten are 24%
permanently 80%

engaged 70%

 Nine out of 60%


ten workers in
the Services 50%

sector are 40% Permanent,


Permanent,
86%
Permanent, Permanent,
84%
82%
permanent 76%

 Industry has 30%

more 20%

temporary 10%
workers
0%
Industry Service Agriculture National

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Job security and size of business
 Nine out of 10 100.0

Temporary, 10.5 Temporary, 10.1


workers in 90.0 Temporary, 18.4 Temporary, 19.9

large/medium 80.0

size firms are 70.0

permanent 60.0

 While 8 out of
Percent

50.0
Permanent , Permanent ,
10 in small 40.0
89.5 89.9 Permanent ,
81.6
Permanent ,
80.1
and micro are 30.0

permanent 20.0

10.0

0.0
Large Medium Small Micro

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Who contributes more, Formal or Informal?
 Six out of 10 100.0

are engaged 90.0


Informal, 24.0
in informal 80.0
businesses Informal, 53.8
70.0 Informal, 62.1 Informal, 59.9
 Two-thirds Percent

of employees 60.0

in Agric are 50.0

in formal 40.0
businesses Formal, 76.0

30.0
 Distribution Formal, 46.2
is close in 20.0 Formal, 37.9 Formal, 40.1

Industry 10.0

than the 0.0


other sectors Agric Industry
Sectors
Services All

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Level of skill in MSML
 Large firms 100.0

employ more 90.0 Unskilled, 17.9

skilled Unskilled, 27.0

workers 80.0 Unskilled, 39.3

 Large firms 70.0

have capacity 60.0


Unskilled, 71.7

and resources
Percent

to employ 50.0

skilled 40.0 Skilled, 82.1


workers Skilled, 73.0

 Skilled 30.0 Skilled, 60.7

workers are 20.0

needed for Skilled, 28.3

efficient 10.0

production 0.0
Micro Small Medium Large

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Recommendations
 There must be deliberate attempts at adopting strategies to
bridge the gender gap in employment.
 Efforts at developing the Industry sector is critical since it
is a sector with high labour absorption potential and
resilient to shocks
 The state could adopt strategies to provide incentives and
create the conducive environment for private sector to set
up businesses in other regions outside Greater Accra
 There must be a conscious effort at implementing policies
that will grow businesses to become large since they can
employ permanent and highly skilled workers which may
lead to growth and development

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ISSUES ON JOB CREATION
IS NEXT!!!!!!!

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By
Dr. Baah-Boateng, Univ. of Ghana, Legon

14th June, 2016

Copyright @ Ghana Statistical Service, 2015


Introduction
 One focus of the survey is employment generation by
non-household establishments across all the 3
major economic sectors of the country
 Job creation is the process of providing new jobs,
particularly for the unemployed and other jobseekers
 It is a measure of net hiring of full and part-time adult
workers.
 The reference year is 2014
 There were many new jobs created and very few job
losses, which were mostly unskilled in manufacturing
Jobs created by
economic Agricultur
e, 1,756, Industry,
sector 1% 24,095,
12%
 A total of
207,492 net
jobs were
created in
2014 Service,
181,641,
 Mostly in the
87%
Services sector
 Agriculture
created the
least number
of jobs
Job creation by economic & institutional sectors
• Majority of 100
90
jobs in
80 42.9
Agriculture
70 62.3
were formal 60 79.6
• Industry and 50 Informal
Services jobs 40 Formal
were mostly 30 57.1
20
informal 37.7
10 20.4
0
Agric Industry Service
Job Creation by Sub-Sectors & Skills
Sector Skilled Unskilled Total Total (%) Overall %
Industry 27,335 (3,240) 24,095 100 11.6
Manufacturing 21,776 (2,663) 19,113 79.3 9.2
Mining & Quarrying 1.830 (64) 1,766 7.3 0.9
Construction 1,490 57 1,547 6.4 0.7
Water & Sewerage 1,190 (202) 988 4.1 0.5
Electricity. & Gas 1,049 (368) 681 2.8 0.3
Agriculture 1,185 571 1,756 100 0.8
Crops 686 257 943 53.7 0.5
Livestock & Poultry 416 86 504 28.7 0.2
Fishing & 55 129 184 10.5 0.09
Aquaculture
Forestry & Logging 26 99 125 7.1 0.06
Job Creation by Sub-Sectors & Skills
Sector Skilled Unskilled Total Total (%) Overall %
Services 151,041 30,600 181,641 100 87.5
Trade 64,280 20,199 84,479 46.5 40.7
Accommodation & Food 15,346 5,617 20,963 11.5 10.1
Education 12,987 2,317 15,304 8.4 7.4
Health & Social work 9,120 1,216 10,336 5.7 5.0
Pub. Adm.& Defense 8,390 993 9,383 5.2 4.5
Finance & Insurance 7,341 1,288 8,529 4.7 4.1
Adm. support service 3,214 189 3,403 1.9 1.6
Arts, Entertain & recreat 2,079 481 2,560 1.4 1.2
Prof. scientific & tech 1,825 374 2,199 1.2 1.1
Transport & Storage 1,670 278 1,948 1.1 0.9
Information & comm. 1,694 247 1,941 1.1 0.9
Real estate 481 352 833 0.5 0.4
Other services 22,614 (2,703) 19,663 10.8 9.5
Job creation by skills and economic sector (%)
120
• Most jobs
created were 100
16.8
skilled jobs: 32.5
80
• Job losses
occurred in 60
113.4 Unskilled
industry 83.2 Skilled
40
• mostly 67.5
unskilled in 20
manufacturi
ng 0
Agriculture Industry Service
-20 -13.4
Job creation by economic sector and size of
establishment
15.7
• Micro firms Service 61.2 17.0
6.1
accounted for
highest # of
jobs in Industry 48.6 5.7 41.3
Industry & 4.4

Services
• Large firms
Agriculture 17.8 20.2 11.6 50.4
created
highest # of
jobs in 0 20 40 60 80 100
Agriculture Micro Small Medium Large
Job creation by region and skills
Job creation by region and skills (‘000)
70.0
60.1
60.0

50.0 Skilled
Unskilled
40.0
32.9
30.0

20.0 17.4 15.4


14.1 13.3 11.6 10.4 9.9
10.0 8.1
5.2 3.9 5.3
1.8 2.2 0.3 1.2 2.6
0.0
-0.5 -0.6
-10.0
Job creation by sector and ownership structure
• Most jobs were 100
created by 90
80
privately- 70
owned firms 60
91.2 94.2 87.3 88.1
• in line with 50
40 Private-owned
current
30 State-owned
economic 20
paradigm 10
and best 0
practices
Job creation by legal organization
Jobs created by Legal organization (‘000)
140.0 126.7
120.0
100.0
80.0
60.0
40.0 25.0 20.4 16.1
20.0 5.8 4.1 3.4 2.5 1.9 1.6
0.0
Job creation by size of establishment

• Firms with 1-4 100


12.2
workers 90
3.8 28.8
accounted for 80 34.9
highest share of 70 200+
jobs created in 60 6.8 19.0 100-199
Services and 50 30 - 99
Industry; while 40 10 to 29
• Firms with 30 57.5
5 to 9
200+ workers 20
46.7 1 to 4
had highest jobs
10
created in 14.6
0
Agriculture Service Industry Agriculture
Job creationBefore
by 1975
age of firm 1975-84 1985-94
4% 1% 3%
Not stated 1995-04
6% 6%

2005-14
80%
Conclusion
 The sources of jobs created in 2014 was in line with the
changing structure of the economy, with the dominance of
Services followed by Industry
 Highest number of jobs were created by the Services sector
but mostly in the informal sector
 Job losses which occurred in the Industry sector, particularly
manufacturing sector, could be linked to the energy
challenges which affected the sector the most
 With the energy challenge subsiding, it is expected that
those activities that depend mainly on energy would see
expansion of their operations and create sustainable jobs in
the economy.
END OF
PRESENTATION ON
IBES I REPORTS

Copyright @ Ghana Statistical Service, 2015

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