A New Patriotic Party Member of Parliament has called on government to implement corporate tax cuts or tax holidays for companies that employ fresh graduates, describing youth unemployment as increasingly alarming.
Kennedy Osei Nyarko, who represents Akyem Swedru constituency, made the proposal in a social media post, arguing that such incentives would enable the private sector to absorb young graduates immediately after completing their studies.
The MP suggested the approach could help mitigate what he described as the overwhelming annual graduate unemployment burden on government and the state. He believes encouraging private sector employment through tax relief represents one viable solution to the country’s graduate unemployment challenge.
Ghana’s youth unemployment situation presents a complex picture depending on measurement criteria. The Ghana Statistical Service reported youth unemployment at over 13% in recent surveys, though official modeled estimates have shown rates around 5.5% for the 15 to 24 age bracket in 2022 and 2023.
Regional disparities complicate the national picture. According to Ghana Statistical Service data cited by the United Nations, national youth unemployment for 15 to 24 year olds stands at approximately 32.8%, with northern regions experiencing significantly higher rates. Upper East region records 39% youth unemployment, among the highest in the country.
The discrepancy between different unemployment figures reflects methodological differences in how unemployment is measured, including whether individuals engaged in informal work or underemployment are counted as unemployed.
Kennedy Osei Nyarko has served as MP for Akyem Swedru since 2016 and previously held the position of Deputy Minister of Agriculture from November 2017. He holds a bachelor’s degree in Marketing from Ghana Institute of Management and Public Administration and a postgraduate diploma from the Chartered Institute of Marketing in the United Kingdom.
The MP has been vocal on economic policy issues throughout 2025. In March, he cautioned government against using backdoor approaches to increase existing taxes following cancellation of the Electronic Transfer Levy and COVID levy. More recently, he questioned the administration’s funding plans for the 24 hour economy initiative.
Tax incentives for employment have been implemented in various forms across different countries with mixed results. Proponents argue they stimulate job creation by reducing labor costs for businesses. Critics contend they may subsidize hiring that would have occurred anyway, result in revenue losses without proportionate employment gains, or benefit larger corporations while doing little for small and medium enterprises.
Ghana already maintains various tax incentive schemes aimed at encouraging investment and employment in specific sectors. The Ghana Investment Promotion Centre administers incentives including reduced corporate tax rates for companies in priority sectors, though effectiveness assessments have yielded varying conclusions.
The proposal comes as Ghana navigates post debt restructuring economic recovery. The country completed a domestic debt exchange program in 2023 and reached agreements with external creditors to restructure obligations, creating fiscal constraints that complicate new spending or revenue reduction initiatives.
Youth unemployment remains politically sensitive ahead of future electoral cycles. Both major parties have proposed various interventions including skills training programs, entrepreneurship support, and public sector employment initiatives, though implementation and impact have faced challenges.
Whether tax holidays specifically targeting graduate employment would prove more effective than existing programs depends on design details including eligibility criteria, monitoring mechanisms, duration of incentives, and safeguards against abuse.
The private sector currently provides the majority of formal employment in Ghana, with government employment capacity limited by fiscal constraints. Encouraging private sector absorption of graduates aligns with broader economic policy emphasizing private sector led growth.
However, questions remain about whether tax incentives alone address underlying challenges including skills mismatches between graduate qualifications and labor market needs, inadequate job creation across the economy, and structural issues affecting business competitiveness and growth.
Graduate unemployment also reflects broader education system concerns, including whether university curricula adequately prepare students for available employment opportunities and whether the pace of graduate production exceeds economy wide job creation capacity.
