High interest rates and lethargic growth in the economy continues to negatively impact Turkey as the country's unemployment rate climbed from 10.9 percent in December to 11.3 percent in January, reports Turkey’s state bureau Wednesday.
In comparison to the previous month, the unemployment rate increased by 0.4 percentage point in January. The number of unemployed youth aged between 15-24 increased by 2.3 percentage point in January while the unemployment rate for those aged between 15-64 increased by 1.1 percentage point. Overall, the labor force participation rate was 50 percent.
However, after seasonal adjustment the number of people employed increased by 156,000 persons while number of unemployed decreased.
Due to high interest rates, Turkey’s growth slowed down in first quarter of this year and GDP increased by 2.9 percent. Turkish President Recep Tayyip Erdoğan has repeatedly insisted for the Central Bank to cut interest rates in order to boost growth. Currently, Turkey’s one-week repo rate is recorded at 7.50 percent.
Report released by the Finance Minister Mehmet Şimşek indicated that the country’s job market will increase in the upcoming month. Furthermore, he announced that Turkey’s budget gave a surplus of $2.5 billion (6.8 billion lira) in March. Şimşek also stated that the data meets government expectations.