By Issah Olegor
The economic landscape presents a troubling paradox: while headline indicators such as inflation and fuel prices suggest relative stability, widespread labor unrest and unpaid wages across key public sectors signal a deepening economic crisis under the National Democratic Congress (NDC) government.
According to reports from unions and government sources, the country is grappling with multiple labor disputes and significant salary arrears that have persisted into 2026.
The University Teachers Association of Ghana (UTAG) faces mounting pressure to launch a nationwide strike following the expiration of an ultimatum related to unresolved regulatory concerns.
Similarly, the Colleges of Education Teachers Association of Ghana (CETAG) declared an indefinite strike over unpaid Book and Research Allowances, although government officials have pledged to clear ₵41 million in arrears by February 9 to restore academic activity.
In the tertiary education sector, the Senior Staff Association of the Universities of Ghana (SSA-UoG) and other unions under TUSAG declared an indefinite strike on February 3, citing unpaid Tier-2 pension contributions and cuts to overtime allowances.
Meanwhile, the Judicial Service Staff Association of Ghana (JUSAG) had planned a strike for January 19, 2026, over eight months of unpaid salaries, though the action was suspended after the government presented a formal payment plan.
Beyond education and the judiciary, public sector arrears continue to affect frontline workers.
Over 6,000 teachers reportedly have between 12 and 15 months of unpaid salaries, with many receiving only two months’ pay despite a full year of service.
The Coalition of Unpaid Nurses and Midwives recently threatened strikes over 11 months of outstanding wages, describing the delays as “inhumane.”
National Service personnel have faced similar delays, although partial payments were made in early 2025.
Experts say the crisis reflects the government’s fiscal consolidation strategy, which mirrors policies often seen in International Monetary Fund (IMF)-backed programs.
Tight monetary policy, high interest rates, and restricted money supply have contributed to stabilized inflation and exchange rates, helping to reduce fuel prices and maintain the Cedi.
However, these macroeconomic successes have come at the expense of household welfare, as delayed payments to workers prioritize debt servicing and fiscal targets over immediate salary obligations.
Economists note that while the government’s headline numbers may appear favorable on paper, the reality for ordinary Ghanaians is starkly different.
The state is effectively “borrowing” from its own workforce by withholding salaries and allowances to maintain cash reserves, creating a scenario where macroeconomic stability masks microeconomic hardship.
The unfolding labor unrest and growing public sector arrears underscore the urgent need for the government to balance fiscal discipline with timely payments to workers, including teachers, nurses, and civil servants, whose livelihoods are directly affected by delayed salaries.
