Introduction
Graduate unemployment has always been a challenge for many young people in developing economies, especially in Ghana. Although a small country, Ghana churns out large numbers of graduates annually from its universities. Currently, Ghana has over 123 private and public institutions[1] offering degree and certificate programmes listed on the site of the Ghana Tertiary Education Commission.
It is estimated that approximately 107,263 graduated from tertiary institutions in Ghana in the 2021[2] academic year. Sadly, many of these graduates do not find jobs. The incidence of graduate unemployment is increasingly becoming an economic challenge to the nation and a national security threat. The graduates from the various universities across the country fall within the youth category, are strong and healthy, versatile and willing to work but have no avenues to express themselves. Overtime, they use the idleness and frustration to undermine the society. This article seeks to discuss the way forward with respect to ensuring collaboration in a manner that supports structured industry and university collaboration to overcome this security challenge.
The pain of graduate unemployment is typified by the quote below from a Daily Graphic article describing the problem;
… Daniel Nsoh (not his real name), a resident of Korle Gonno in Accra, was 23-years-old when he completed National Service[3], ready for employment to advance the cause of an employer and to also start his life.
At 36-years-old in 2021, the researcher with a BSc in Sociology (Second Class Upper), is still job-hunting. In the space of 13 years, Daniel has lost count of the number of application letters he has submitted, the interviews attended, the aptitude tests written and the number of ‘big people’ he has pleaded his case to but to no avail.
What he remembers with scorn is the parting words that are now almost accustomed with his hundreds of interactions with potential employers: “You will hear from us.”[4]
Tertiary Education Overview
Ghana’s tertiary sector is characterised by public tertiary institutions, private tertiary institutions and some specialised institutions offering various degrees, diploma and certificate programmes. For a majority of these universities, the feeder institutions come from second cycle schools around the country that have prepared students for further education at the tertiary level. A 2022 UNESCO Report gave the following overview;
In the 2020/2021 academic year, 580,751 students were enrolled in tertiary education institutions in Ghana. Public tertiary education institutions enrolled 88% of the total student population whereas the remaining 12% were enrolled in private tertiary education institutions. … The trend of enrolment across institutions over the last six years has been increasing and it’s projected that it will continue to rise largely because of the implementation of the Free Senior High School Policy.[5]
Quite clearly, there is bound to be bigger increases as the population grows and the free senior high school policy gains traction. The challenge therefore would be what to do with the high numbers graduating from university without prospects of finding jobs.
Some Impacts of Graduate Unemployment
There are key problems with the increasing numbers of graduates who get onto the job market without any clear prospects for employment. A few are discussed below;
- The large numbers of unemployed graduates present a clear and present danger, especially in an election year where they could become cannon fodder for unrest and political instability. Given the growing tensions and the lack of opportunities, young graduates could be lured by any of the major political parties, initially as foot soldiers and later to foment trouble when necessary. They would be willing to participate in violence because of immediate benefits. It would be recalled that there have been calls for an Arab Spring type of protest across west Africa. In 2023 following the coups across French speaking West Africa, a video emerged, calling on young people to topple the old men in Ghana, Nigeria and other countries.
- In the area of health, the challenges of being a graduate and unemployed tends to take a heavy toll on the mental health of graduates. Inspite of the skills acquired, they are made to feel useless, unimportant and not wanted or recognised by society. This negatively impacts societal cohesion and breeds anti-social individuals.
- There have been linkages to cybercrime and graduate unemployment. With very little to do and access to the internet, young graduates with skills in information technology, cyber intelligence and hackathons are able to convert that skill to commit crime[6]. The Cyber Security Authority has indicated that cybercrime is not only on the rise but is targeting banks and individuals and costs the nation significant amounts of money. Ninety percent of all arrested suspects in a study the police service are aged between twenty one and forty years.[7] The global cost of cybercrime is estimated to be about 10.5 trillion dollars annually by 2025, up from 3 trillion in 2015[8]. This is an area that is a huge economy relative to the economies of countries such as the US and China.
- In addition to the above, the incidence of graduate unemployment robs the government of much needed revenue largely in two ways. Students in public universities in particular are supported through various subsidies. It is expected that on completion, they would earn money and pay taxes. Furthermore, government supports students through the student loan scheme which become lost investment if students don’t get jobs to pay back. The overall impact on the economy will need to be assessed and quantified. In the light of earlier investments under the free SHS, the total bill to the country could be considered phenomenal.
CISA’s Propositions
Ghana’s unemployed graduate saga presents a worrying consequence. Evidence of government interventions, past and present, and their efforts to institute programmes for youth development and employment have yielded results which fall far short of expectation. The implementation of the youth employment programmes for both graduate and non-graduates have been challenging. CISA’s proposals are hinged on two key considerations which must be considered for implementation. The first is the introduction of entrepreneurship education at the tertiary levels and collaboration between industry and universities.
Entrepreneurship education has become an important subject in many countries and especially in Ghana due to the challenge of youth unemployment. In recognition of that challenge, the government of Ghana in 2006 established the National Youth Employment Programme (NYEP) to stimulate entrepreneurial endeavour among the youth. It was estimated that about 65% of Ghanaian youth were unemployed at the time[9]. Other programmes have included the Rural Enterprises Programme (REP), Skills Development Fund SDF), Ghana Youth Employment and Entrepreneurial Development Agency (GYEEDA), Integrated Youth Community Centres (ICCES), Microfinance and Small Loans Centre (MASLOC), Local Enterprises and Skills Development Programme (LESDEP), Youth enterprise Support (YES) and Savannah Accelerated Development Programme (SADA).
The phenomenon of an association of unemployed graduates which was formed at the height of the cries of youth unemployment exacerbated the challenge. It is estimated that there were about 24,647 members as at July 2015.[10] This group of unemployed youth has been clamouring for jobs and encouraging the government to ensure that there are opportunities for all. A lot of the graduates are seeking white collar jobs or employment within the public sector which has no new openings. This issue is deepened by some persons within the public sector to reducing their ages to get longer working life. For such people, retirement at age 60 is not an option. This is understandable given that some people get their first jobs several years after completing their university education.
The efforts of government to deal with the issue over the years are laudable. They have however achieved limited success because of the way they were implemented. A lack of partnership with key training institutions based at the universities, political colourisation and improper implementation mechanisms have tendered to undermine their success in each instance. The Nation Builders Corps (NABCO) for instance, was instituted to deal primarily with graduate unemployment. It has been plagued by a number of challenges including the age-old issues of non-payment of stipends and allowances, late payment and lack of clear direction as to how long graduates are to stay on the project. The issues raised therefore make a case for developing entrepreneurs. This is not only compelling but has become an imperative.
As a result of the above, entrepreneurship education has become not only necessary but critically important. It is a matter of prime importance therefore that universities teach their students to become employers rather than a part of the employed or unemployed association of graduates.
CISA proposes the following policy recommendations;
- Entrepreneurs can be made. As Peter Drucker stated, entrepreneurship is a discipline, and like any discipline, it can be learned.[11] A structured approach to attaining this must be undertaken. It must take place in institutions of learning and we propose the universities where students are mature and can appreciate the key concepts such as mindset, opportunity recognition, industry and market analysis as well as financing and strategy design.
- Use of blended learning approaches that allow for the sharing of knowledge through partnerships with industry to ensure entrepreneurship knowledge shares is practical and would lead to desirable outcomes.
- An industry and university partnership approach to teaching and learning would provide practical and skill oriented training that engenders research, industry related training and outcomes and the necessary funding for research and entrepreneurial endeavour based on a business approach.
- Encouragement of students to partner to develop entrepreneurial ideas and make presentations for funding to partner industry institutions for financing considerations to engender jobs and opportunities for graduates.
- While the existence of MASLOC and Venture Funds are not being questioned, their focus and application of funds must be done in a manner that focuses on youth and graduates in particular to find expression for their ideas and create businesses.
Conclusion
Entrepreneurship education has emerged over the last two decades as arguably one of the most potent economic forces, engendering interest across the world. It has become an important tool for building partnerships for job creation and ultimately economic growth. This has become an imperative in developing economies that are challenged with changing mindsets of graduates against entrepreneurial endeavour. The high unemployment rate for young people has been considered a national security threat. The history across West Africa of young people fuelling civil wars that plagued Sierra Leone, Liberia and other countries supports the security challenge occasioned by the youth bulge. Entrepreneurship education, based on university -industry partnership therefore, has become a critical tool for changing mindsets and developing business skills to undergraduate and graduate students in business idea generation, opportunity examination, financing, new venture creation and growing businesses.
It is important to underscore the issues discussed by referencing a quote from the UN Conference on Trade and Development on the important role of entrepreneurship education discussed as an agenda item in 2011. The note by the UNCTAD secretariat stated that:
One of the key success factors for entrepreneurship education is effective development of the entrepreneurial ecosystem, in which multiple stakeholders play a role in facilitating entrepreneurship. It is a system of mutually beneficial and self-sustaining relationships involving institutions, people and processes that work together with the goal of creating entrepreneurial ventures. It includes business (large and small firms, as well as entrepreneurs), policymakers (at international, national, regional and local levels), and formal (primary, secondary and higher education) and informal educational institutions. The different stakeholders are involved in a series of symbiotic actions which include awareness and outreach, the development of human capital and critical talent, public–private partnerships, multiple sources of innovation, intellectual property and funding[12]. The UNCTAD statement recognises the role of interconnectivity for entrepreneurship education to be effective. The benefits that this interaction would engender include security, social cohesion and nationalism for young graduates leaving school. Additionally, it would be an excellent experience to enhance not only opportunities for students but also lecturer capacity when there is collaboration with industry. This would engender experience and continued interaction with industry through research, attachments and board appointments.
[1] Source: Ghana Tertiary Education Commission
[2] See UNESCO Higher Education Report for Ghana in 2021 p11
[3] The National Service is undertaken by graduates who complete University. Usually spanning a one-year period, it is required of all Ghanaians who are 18 years and above at the time of the service. It helps to provide essential services (especially in education) and amenities, particularly in rural settings, develops manpower through practical skills training and promotes national unity and cohesion through the bonds of service and citizenship.
[4] See Maclean Kwofi in Daily Graphic online Oct. 9 2021
[5] https://whec2022.net/resources/Country%20report%20-%20Ghana.pdf
[6] Ghana loses more than $114m to cybercrime in two years – Ghana Business News
[7] Age Distribution of Arrested Suspects | Download Scientific Diagram (researchgate.net)
[8] Cybercrime To Cost The World $10.5 Trillion Annually By 2025 (cybersecurityventures.com)
[9] see https://www.modernghana.com/news/93148/youth-unemployment-is-256-statistical-service.html (accessed 12th May 2016). The Minister of Employment stated the high numbers of unemployed youth were a threat to national security.
[10] see http://www.ghanaweb.com/GhanaHomePage/NewsArchive/Unemployed-Graduates-Association-registers-thousands-of-members-369789 (accessed 12/05/16)
[11] Drucker, P.F. (1985). Innovation and Entrepreneurship. New York, Harper & Row.
[12] Entrepreneurship education, innovation and capacity-building in developing countries accessed at http://unctad.org/en/docs/ciimem1d9_en.pdf
