BusinessEconomyGhana

Financial sector recorded pay cut of just 5% at peak of COVID

Research by the Ministry of Employment and Labour Relations shows that construction has been hardest hit by the economic shutdown to contain the disease

A survey by the Ministry of Employment and Labour Relations shows that the financial sector recorded the lowest pay cut during the first three months of the outbreak of the novel coronavirus disease in Ghana.

This is followed by the shipping and maritime sector, which recorded 18%.

The pilot labour market survey also shows that the construction sector recorded the highest pay cut during the period – 58%.

Respect for health guidelines

In all, 878 enterprises with 440,400 employees in total were interviewed during the two-month survey, which sought to assess the impact of COVID-19 on job losses and levels of pay cuts across the country.

The Minister of Employment and Labour Relations, Ignatius Baffour Awuah, made this known at a news conference to brief journalists on the impact of COVID on the labour sector on Wednesday in Accra.

Of the 878 businesses covered by the survey, 98.5% were in the private sector.

Baffour Awuah said about 80% of the firms inspected by the ministry were adhering to the COVID-19 guidelines prescribed by the government and the World Health Organization.

Unemployment insurance

Touching on proposals to introduce unemployment insurance, the minister announced that a tripartite technical committee has been set up to devise modalities for implementing the scheme as announced in the Mid-Year Budget Review by the Minister for Finance, Ken Ofori-Atta.

“I am happy to announce a technical team has been constituted to come out with modalities for the implementation of unemployment insurance scheme,” Baffour Awuah said.

Among other things, the scheme is expected to provide direct income support to workers who lose their job or suffer a pay cut in the event of social or economic shock.

It also seeks to offer opportunities for training, retraining, apprenticeship and internship.

Fred Dzakpata

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