Aug 15 2018

Turkish jobless rate rises from lowest level in two years

Turkey’s headline unemployment rate rose from the lowest level in two years in May after the lira slid against the dollar and interest rates rose, paring the profits of some companies.

The rate increased to 9.7 percent from 9.6 percent in April, according to data published by the Turkish Statistical Institute on Wednesday and a month ago. Jobless people totalled 10.2 percent of the workforce in May 2017.

Seasonally-adjusted unemployment climbed to 10.6 percent in May from 10.3 percent in April. Youth unemployment rose to 17.8 percent from 16.9 percent, the institute’s figures showed.

Turkey’s government is grappling with a slump in the lira that has helped push producer-price inflation up to 25 percent. The currency has lost almost 40 percent of its value this year amid fears of economic overheating and during a crisis with the United States over Turkey’s internment of Americans.

Most economists expect Turkey’s economic growth to slow sharply in the third quarter or post a contraction. Annual growth averaged more than 8 percent in the nine months to March as the government stimulated the economy with a range of tax breaks, incentives and amnesties ahead of presidential and parliamentary elections in June.

Turkey unemployment