Unemployment reaches crisis level — Bawumia
Dr Mahamudu Bawumia, the running mate of Nana Addo Dankwa Akufo-Addo for the 2016 election, has cautioned that the unemployment situation in the country has reached a crisis level and urged the government to treat it as a national security issue.
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He said the unemployment challenge would worsen next year, when the government began the rationalisation of workers in the civil service as agreed under the International Monetary Fund (IMF) programme with the government.
Dr Bawumia, who was delivering a lecture on: "Youth Unemployment, Causes and Effects" at the Accra Polytechnic in Accra, said the government had presented the rationalisation plan, which would lead to job losses next year, to the IMF.
He challenged the government to make the documents available to all Ghanaians.
"In the interest of transparency, make the documents available so that all Ghanaians can see. If the government does not have anything to hide, it should make the documents available," he challenged the government.
The lecture was organised by the New Patriotic Party (NPP) Regional Youth Wing, the Accra Polytechnic TESCON and the Greater Accra Region TESCON last Thursday.
The students, some of whom were dressed in party paraphernalia, applauded intermittently during the one-hour and 10 minutes lecture.
Also present were the NPP acting Chairman, Mr Freddie Blay; the National Youth Organiser, Mr Sammy Awuku; and the Greater Accra regional executive members of the party.
Excessive borrowing
Dr Bawumia mentioned excessive borrowing, drop in agriculture production and the manufacturing industry, high taxes and corruption, economic slow down and power outages as the causes of unemployment in the country.
Concerning borrowing, he said, the country's debt stock was GH¢9.5 billion in 2008 when the NPP government left office.
Dr Bawumia said the NDC had between 2009 and 2015 increased the country's debt stock from GH¢9.5 billion to GH¢99 billion.
He said the debt increased to GH¢99 billion in March 2016, and indicated that the debt would reach GH¢111 billion next year.
He said with such large scale borrowing, the government had crowded the market which made it difficult for the private sector to borrow.
For instance, Dr Bawumia said, with the bank granting loans at 35 per cent interest, companies could not go for loans to grow their businesses to create jobs for the youth.
Besides, he said, the government was paying huge interests on the debts, which denied the government the needed resources to invest in projects to create jobs.
Agriculture slowdown
Dr Bawumia said the slowdown in agriculture production and the manufacturing sector had reduced the job opportunities in those sectors.
For instance, he said, the growth in agriculture was 0.04 per cent, while the manufacturing sector was growing at negative two per cent.
Economic slowdown
Dr Bawumia said the slowdown in economic growth (3.7 per cent in 2015) had weakened business and producer confidence.
"Economic slowdown means that unemployment rate is going up. We have to understand that job creation is the ultimate measure of economic success.
"No matter the statistics, If economic policy leaves people with no jobs, then the government has failed the country," he said.
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Power outages/high taxes
Dr Bawumia said the power outages otherwise called 'dumsor' which plagued the nation for four years had worsened the unemployment situation.
He said high electricity tariffs had increased the cost of doing business, while businesses were also saddled with high taxes
"Many business are closing down, compounding the unemployment situation," he said.
Corruption
Dr Bawumia said corruption characterised by over pricing of contract sums, sole sourcing and the misappropriation of money by officials of the Savannah Accelerated Development Authority (SADA) and the Ghana Youth Employment and Entrepreneurial Development Agency (GYEEDA), adding that such money could have been used to create jobs for the youth.
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NPP's solutions
Dr Bawumia urged the electorate to give the NPP the mandate because it had programme and policies to grow the economy and create jobs.
For instance, he said, an NPP government would give incentives to the private sector to increase production, while raw materials imported into the country would be duty free to encourage production.
He said an NPP government would reduce taxes and introduce an employment tax scheme to provide incentives to companies to employ young graduates.
Dr Bawumia said the teacher and nursing training allowances would be restored.
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Quick read
Dr Mahamudu Bawumia, the running mate of Nana Addo Dankwa Akufo-Addo for the 2016 election, last Thursday delivered a lecture on "Youth Unemployment, Causes and Effects" at the Accra Polytechnic.
He said the unemployment situation in the country had reached a crisis level, a situation that required urgent attention and remedies.