Dec 15 2017

Turkey’s jobless rate stable even as economic growth slowed

Turkey’s unemployment rate remained unchanged at 10.6 percent in September from August, even as quarter-on-quarter economic growth slowed.

The rate fell from 11.3 percent in September 2016, when the economy contracted due to a failed coup attempt. Youth unemployment was 20 percent in September, falling from 20.6 percent in August but rising from the previous year’s 19.9 percent, data provided by the statistics office in Ankara showed on Friday.

The number of unemployed, excluding the agricultural sector, rose to 12.9 percent from 12.8 percent in August. The labour force participation rate was 53.6 percent, down from 53.7 percent.

The government has cut taxes on some durable goods – a programme that ended in September – and provided 250 billion lira ($65 billion) in loan guarantees to various industries to help stimulate the economy after the failed coup. It is now pledging some project-specific investment incentives and measures to help banks provide more credit. Quarter-on-quarter economic growth slowed to 1.2 percent in the three months to September from 2.2 percent in the previous quarter.

Unemployment is forecast to increase to 12.4 percent by the end of the year, according to data provided by Trading Economics.The jobless rate in Turkey has averaged 10.1 percent between 2005 and 2017, reaching a record low of 7.3 percent in July 2012 and a high of 14.8 percent in February 2009.

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Turkish jobless September