Nearly 50% Ghanaians lose livelihood to COVID-19

Nearly 50 per cent of Ghanaians have lost their household’s main source of income to the coronavirus (COVID-19) disease which broke out in the country in March last year, a new survey has established.

According to the survey, the COVID-19 impact was acutely felt — more Ghanaians reported a decline in household income since the start of the pandemic, and an alarming percentage also lost their household’s main income sources, which in most cases were derived from the labour market.

The survey

The survey was conducted by researchers from the United Nations University World Institute of Development Economics Research (UNU-WIDER) and the Institute of Statistical, Social and Economic Research (ISSER), University of Ghana, Legon.

They interviewed more than 600 workers in different cities throughout Ghana to assess the immediate and near-term impact of the COVID-19 pandemic on labour market outcomes.

These data have been analysed and published in a new report delivering novel insights on how the pandemic and related policy measures have impacted the livelihoods of workers and their families.

In the report, the researchers provided a comprehensive overview of their findings, which can help inform future policies.

Outcome

Four main results stand out: The COVID-19 impact was acutely felt - 84 per cent of respondents reported a decline in household income since the start of the pandemic, and an alarming 42 per cent had lost the household’s main income sources, which in most cases were derived from the labour market.

Not all workers were affected equally - job and earning losses were disproportionally reported by women and workers in informal self-employment, accentuating pre-existing inequalities.

In September 2020, employment and earnings were still remarkably below pre-pandemic levels, and the recovery has been slow to reach the most vulnerable.

Despite these, respondents, the report said, expressed support for Ghana's COVID-19 policy response—both the early implementation of strict containment policies and the subsequent rollback. 

About the researchers

Simone Schotte is a an applied microeconomist with research interests in development and labour economics, working specifically at the interface of poverty, inequality, and employment dynamics research. She joined UNU-WIDER as Research Associate in February 2019. She holds a PhD in economics from the University of Göttingen, Germany, where she was a member of the Globalization and Development (GlaD) research training group.

Michael Danquah, a development economist, is a Research Fellow at UNU-WIDER currently serving as co-focal point for the project Transforming informal work and livelihoods within UNU-WIDER's 2019–23 work programme. Michael is a visiting Research Fellow at the Transfer Project and a Researcher for the International Growth Centre (IGC), Ghana. Previously, he worked at the Department of Economics, University of Ghana, Legon.

Robert Darko Osei is an Associate Professor at the Institute of Statistical, Social and Economic Research (ISSER), University of Ghana, Legon, and also the Vice Dean for the School of Graduate Studies at the University of Ghana. Robert has published widely in edited volumes and top international journals. He is currently involved in a number of research projects in Ghana, Niger, Burkina Faso and Mali.

Professor Kunal Sen has over three decades of experience in academic and applied development economics research. He is the author of eight books and the editor of five volumes on the economics and political economy of development.

Professor Sen is a leading international expert on the political economy of growth and development. He has performed extensive research on international finance, the political economy determinants of inclusive growth, the dynamics of poverty, social exclusion, female labour force participation, and the informal sector in developing economies.