Turkey jobless decline likely to be temporary

A marginal decrease in Turkey’s jobless rate announced on Wednesday may be temporary and unemployment is likely to rise toward the end of the year as the economy slows.

Unemployment edged down to 10.6 percent in August from 10.7 percent in July, the statistics agency in Ankara said. Youth unemployment was 20.6 percent compared with 21.1 percent the previous month.

The rate is expected to rise to 11.2 percent by December, according to forecasts collected by Trading Economics before the data was published.

While analysts have warned of an economic slowdown in the fourth quarter and further pressure on the lira, Deputy Prime Minister Mehmet Şimşek said on Wednesday that external factors hurting Turkey’s economy are coming to an end and a programme of reforms in the new year would revitalise investment.

The lira traded at 3.89 per dollar at 2:16 p.m. in Istanbul, unchanged from earlier in the day. The currency has lost 12 percent of its value since the middle of September.

Turkey jobless rate