Inflation affecting incomes, cost of living — Study

A new study has revealed that the informal workforce which constitute 83 per cent of Accra’s workforce and 89 per cent of the national workforce, are severely affected by inflation and the high cost of living. 

The study conducted by Women in Informal Employment: Globalising and Organising (WIEGO), a global network focused on empowering the working poor, revealed that nine out of 10 workers earned less in October 2023, compared to January 2023, indicating a significant decline in their income levels due to inflation.

It further revealed that most informal workers earned less than the living wage, indicating that on average, a kayayo earns around GH¢500 monthly, while street vendors and waste pickers earn between GH¢1,250 and GH¢1,300, with market traders earning around GH¢2,200. 

These figures are far below the average monthly living wage of GH¢2,922 needed to maintain a basic but decent standard of living in peri-urban areas of the country.

The Organiser of Accra Focal City, WIEGO, Karim Saagbul, presented the finding of the research at a press briefing in Accra. 

It was attended by umbrella bodies of all informal sector workers, including the Greater Accra Markets Association (GAMA), Informal Hawkers and Vendors Association of Ghana (IHVAG) and kayeyei (female head potters).

Study

The  study was conducted in October 2023 among six focus group discussions (FGDs) with 31 workers in the informal employment sectors in Accra. 

It aimed to understand the impact of the rising cost of living on some informal workers, included participants from four occupational sectors: street vendors, waste pickers, market traders, and kayayei. 

Additionally, it conducted five interviews with work leaders to gather comprehensive insights into the struggles faced by these workers.

Household expenses

The study further indicated that the workers grappled with critical household expenses, including food, education, and utilities.

It stated that nine in 10 workers spent more on food in mid-2023, compared to January 2023, and on average, over half of their household earnings (56 per cent) were spent on food. 

To cope, it stated that these workers had reduced their food consumption and quality, affecting their health and nutrition.

Education cost was the second burden, where typical workers spend nearly a third (27 per cent) of their household earnings on their children's education.

Transportation costs have also forced workers such as waste pickers to close their workplaces or walk longer distances, increasing their working hours.

Also, steep increases in rent and utilities have led many workers to delay payments, return to their hometown, or move in with family members, severely impacting their living standards.

Mr Saagbul also said “waste pickers and kayayei, who require substantial meals for their physically demanding jobs, are now forced to choose less nutritious but more filling foods”.

He, therefore, said that mental health issues, such as stress and insomnia were prevalent among informal workers due to financial pressures.

Concerns

The President of the Greater Accra Market Traders Association, Mercy Naa Afrowa Needjan, said they were faced with high economic risks, job insecurity and harassment from local authorities. 

She said the prices of goods had also increased, while peoples’ purchasing power had plummeted. 

The leader of the kayayei, or head porters in the Agbogbloshie market in Accra, Rukaya Bawule, said they were struggling to meet basic needs, and faced severe discrimination and health risks, adding that “with reduced demand for our services, many of us resort to self-medication due to the high costs and poor quality of healthcare services”.