Private sector must absorb more workers – Pelpuo on 24-hour economy

The Minister for Labour, Jobs and Employment, Dr Abdul Rashid Hassan Pelpuo, says the success of the government’s 24-hour economy initiative depends heavily on increased hiring by private businesses to ease pressure on the public wage bill.

Speaking on TV3’s Hot Issues on Monday, July 7, 2025, Dr Pelpuo said that while the government will create jobs through infrastructure development and security sector recruitment, the private sector must take up the larger share of employment creation for the policy to be effective.

“We are exploring ways to shift employment from the public to the private sector, encouraging companies such as MTN, mining firms and banks to absorb labour,” he said. “This would reduce the government’s role as the main employer and free up funds for public investment.”

The 24-hour economy policy, introduced earlier this year, aims to create 1.7 million jobs over four years by promoting a three-shift system to allow continuous operations in sectors that can support them.

Dr Pelpuo explained that the initiative goes beyond adjusting work schedules. It is intended to restructure the labour market to match workforce supply with industrial demand, with the private sector expected to take the lead.

He acknowledged that the current public wage bill remains a major constraint. Following a recent 10 per cent increase in public sector salaries, the government now requires an additional GH¢4 billion to pay fewer than one million workers out of the country’s 35 million population.

“We cannot continue like this. The burden is heavy,” Dr Pelpuo said. “This policy is a reset, a shift to make labour more productive and better aligned with economic development.”

Although the Labour Bill that would formally support the 24-hour model is still under review, Dr Pelpuo said changes to the law may not be strictly necessary to begin implementation. He, however, stressed the need for legal clarity to prevent exploitation by private employers.

As part of its strategy, the government is also prioritising labour-intensive projects, including a proposed asphalt road from Tamale to Hamile, and expanding the security sector to create more employment opportunities.