Turkey’s unemployment rate rises to 9.6% in June

By bne IntelliNews September 15, 2015

Turkey’s unemployment rate rose to 9.6% in June, the first deterioration on a m/m basis since the beginning of this year although the summer season has started in the month, the statistics institute TUIK announced on September 15.

Turkey’s unemployment rate is chronically higher than 9% level since May 2015, however, it has showed an improvement trend between January 2015, when the unemployment rate hit to 11.3% - the highest figure recorded since April 2010, and May 2015 when the unemployment rate stood at 9.3%. Summer season in Turkey generally provides favourable employment conditions thanks to mass seasonal employment in tourism, construction and agriculture sectors, however, it is obvious that problems in Turkish tourism industry also damaged the industry’s support to the employment. Under normal conditions, the unemployment rate was expected to fall in the first month of summer season.

Turkey’s unemployment data is also chronically unhealthy due to low labour force participation rates. The participation rate was still relatively low at 52.1% in June, although it was higher compared to 51.7% in May depending on the seasonal workers’ participation in job seeking. The participation rate in June 2015 was higher than 51.3% in June 2014, indicating another reason to increase in the unemployment rate in June 2015.

Seasonally-adjusted unemployment figures also deteriorated in June 2015. Seasonally-adjusted unemployment rate rose to 10.4% in June, the highest figure recorded since November 2014, while seasonally-adjusted non-farm jobless rate increased to 12.6% in the month, again the highest figure recorded since November 2014. Unadjusted non-farm unemployment also deteriorated to 11.7% in June, comparing unfavorably with 11.4% in May and 11.1% in June 2014.

TUIK calculates the number of unemployed at 2.88mn in June, up from 2.79mn people in May and 2.65mn in June 2014. TUIK also said that 51% of the employed worked in the services sector as of June, 22% in the agriculture, 19.7% in the industry and 7.3% in the construction sectors. The economy created 613,000 jobs over the past year.

The Turkish government forecasts the unemployment rate to be 9.5% in 2015 as it expects GDP growth to pick up from 2.9% in 2014 to 4% in 2015. Real GDP growth will hover around 3% over the medium term, unemployment could continue rising, leading to social pressures, said S&P on July 29 in its 2015 Global Credit Outlook for Banks. The participants of the TUIK’s consumer confidence survey said last month that they expected unemployment to increase over the next 12 months, TUIK data showed on August 21.

Turkey's Labour Market                
  Sep Oct Nov Jan-15 Feb-15 Mar May Jun
Labour force participation rate (%) 51.1 51.0 50.5 50.0 50.1 50.4 51.7 52.1
Unemployed (mn) 3.06 3.04 3.10 3.26 3.23 3.07 2.79 2.88
Unemployment Rate (%) 10.5 10.4 10.7 11.3 11.2 10.6 9.3 9.6
Non-Farm Unemployment Rate (%) 12.7 12.5 12.7 13.4 13.2 12.6 11.4 11.7
Seasonally-adjusted Unemployment Rate (%) 10.6 10.6 10.6 10.2 10.2 10.1 10.2 10.4
Seasonally-adjusted Non-Farm Unemployment Rate (%) 12.7 12.6 12.7 12.3 12.2 12.1 12.3 12.6
Source: statistics institute    

Related Articles

Turkey postpones plan to sell firms seized after coup attempt

Turkey has put on hold its plan to sell almost 600 companies worth about $10bn seized in the aftermath of the failed military coup, people familiar with the matter told Bloomberg on March 23. The ... more

Turkey to maintain EU economic relations but review political ties, says Erdogan

Turkey will maintain its commercial ties with the European Union but will review its political and administrative ties with the bloc after the April 16 referendum, Turkish President Recep Tayyip ... more

Turkey easily tops table for Twitter content removal requests

Turkey accounted for more than half of all content removal requests received worldwide by Twitter during the second half of 2016, according to the social media company’s ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss