Report says Turkish unemployment falls to 10.8 percent

Turkey’s unemployment rate slightly decreased in 2015 during which 806,000 people were employed by labor markets, according to released official data

Photo by: AA
Photo by: AA

A number of people wait in front of an unemployment office in undated photo.

The Turkish unemployment rate in December decreased by 0.1 percentage to 10.8 percent compared to the same period of 2014, the Turkish Statistical Authority (TurkStat) reported on Tuesday.

The employment rate rose slightly in 2015 to 45.4 percent with 806,000 new workers employed by the labor market, TurkStat reported.

In addition, Turkey’s labor force participation rate increased 0.7 percent in December year-on-year, to 50.9 percent that means 865,000 persons have joined the labor force.

The report has indicated the number of women participating in the workforce increased about 1.2 percent from the previous year to 31.2 percent.

Among the segment of the labor force aged between 15 and 64, the unemployment rate also decreased by 0.2 percent compared to the same period of 2014 according to the released data.

The country's youth unemployment rate decreased by one percent to 19.2 percent in December 2015.

Tuesday’s report also illustrates that the rate of people without any social security connected to their main job stood up at 32.1 percent with a 1.1 percent decrease in December 2015 compared to the same month of 2014.

"The unemployment rate caused no surprise, above from the previous level of 10.5 percent and below both market and our expectations of 11.0...," ALB Securities analyst Enver Erkan said.

“Our concerns had focused on the negative effect of the refugee crisis and the huge increase in the minimum wage... We will see the real negative impacts of the minimum wage increase in 2016 data. This will limit the employment increase and also increase unrecorded employment,” Erkan pointed out.

Erkan stated that the country's youth unemployment shows some improvement “but we think that this was caused by the decline of youth participation rate to the labor force.”

“We expect 3.3 percent GDP growth for the fourth quarter of 2015; not enough to pull unemployment down. The unemployment rate is in an upward trend and this will remain in 2016,” he added.

Deputy Prime Minister, Mehmet Simsek, also commented on the official data saying that Turkey urgently needs to reform its labor market.

He has indicated that the Turkey's unemployment rate has been high in 2015 “though the country has employed 806,000 more people last year.”

TRTWorld, AA