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In Ghana, the transition from school to the labour market has been extremely difficult for graduates, especially in securing jobs. It is estimated that the tertiary institutions in Ghana produce an annual graduate turnout of 300,000 students. This thesis seeks to understand the extent to which social capital and networks act as a resource-opportunity structure in obtaining or depriving employment opportunities. The research findings were obtained by the application of qualitative methods. This study argues that graduate unemployment in Ghana is not as a result of lack of employability skills and incompetence of the graduates, but rather the issue of limited employment opportunities and favouritism, often called ‘whom you know’ in the labour market. Informal job search methods reflect jobseekers’ activation and use of social networks or ties, such as acquaintances, friends, relatives, neighbours, colleagues, and peers. Particularly, an individual’s family and friends (strong ties) are not only important sources of job information but also means of securing jobs. Attitudinal and behavioural traits and the kind of interactions between graduates and their contacts enabled the author to group social networks into three categories: formal social networks (employee referral), informal social networks (family and friends) and linking referrals (third-party or intermediary). The key to understanding why both employers and jobseekers are resorting to informal networks is due to the limited job opportunities in the labour market. The pervasiveness of informal channels means that without having a relative or a friend to connect you to a vacancy, securing a job would be difficult. This means that intrinsic and extrinsic factors underpinning the graduates’ aspirations are being shaped by social support and barriers in the labour market. The seemly widespread and ‘general acceptance’ of informal channels in the labour market has led to favouritism and discrimination. Specifically, it has led to the constant redirecting of jobs toward a certain class of people; institutional closure for some people; occupational segregation and immobility leading to limit status attainment; deliberate favouring of one’s family members and friends (nepotism and cronyism). In addition, informal channels have opened the floodgate for referee opportunism, agents and agent scammers to flourish in the job market. |
