Assessing The Impact Of Macroeconomic Stability On Unemployment In Ghana

Abstract

 Youth unemployment is gradually becoming an extremely security situation the world over. This youth unemployment is a structural issue rather than a mere job creation issue.  Unemployment is defined as the situation where people who are willing and able to work, and are looking for jobs to do but can find none within the next two weeks. (World, 2013)Macroeconomic stability has been accepted the world over as the fundamental factor  crucial for sustainable economic growth and job creation. In Ghana, the unstable nature of inflation, interest rates, exchange rates, and fiscal balances have significantly influenced labour market outcomes. This paper evaluates how macroeconomic stability influences job creation in Ghana.. This paper draws heavily on the empirical evidence emanated from studies and recent economic trends. The study finds that while macroeconomic stability creates an enabling environment for employment growth. There are structural constraints such as skills mismatches between the available jobs created from the opportunities created and the skills required by those jobs. Which labour market inefficiencies limit its full impact. The paper concludes that macroeconomic stability must be complemented by structural reforms to achieve sustainable job creation.