Turkey: Unemployment rate falls to 10.7% in February
The unemployment rate in Turkey in February, which was 13.2% in the same month of the previous year, decreased by 2.5 points to 10.7%.
The unemployment rate in Turkey in February, which was 13.2% in the same month of the previous year, decreased by 2.5 points to 10.7%. When compared to the previous month, it is observed that the adjusted unemployment rate decreased by 0.5 points. While the unemployment rate among the young population is 20.7%; The idle labor force rate, which is a broadly defined measure of unemployment, decreased from 22.9% to 21.8% compared to the previous month.
When we look at the comparable periods, February 2021 – February 2022, it is seen that there was an increase of 2 points in the labor force participation rate between the relevant periods, with adjusted data. The workforce, which was 31 million 794 thousand people in the similar period of 2021, became 33 million 585 thousand people in February 2022. The labor force participation rate increased from 50.2% to 52.2%. Looking at the seasonally adjusted data; While the employment rate increased by 3 points to 46.6% compared to the same period of the previous year, there was an increase of 90 thousand people in seasonally adjusted employment compared to the previous month.
Despite the signs of slowdown in the economy, unemployment displays a better outlook than general expectations and shows that there is a limited slowdown in the economy in the first 2 months of the year. The general horizontal trend in the unemployment rate in the previous months seems to be a phenomenon that can be attributed to the decrease in the labor force participation rate and the increase in employment in recent months. In terms of employment growth, the activity remained in the expansion zone with the support of export trends, especially on the industrial side, and recruitment continued, as evidenced by the leading PMI data and sectoral confidence indices. In the coming months, the negative impact of geopolitical risks on both raw material supply and export orders may slow down this trend.
Seasonal factors will come into play after the second quarter. At this point, we have to observe the impact of the Russian crisis on the agriculture and tourism sectors. Risks related to a decrease in food supply or limitation of tourism potential may cause the unemployment rate to increase slightly. The activity potentials of the relevant sectors, the need for workers and, accordingly, their employment creation potential will determine the course of the labor force in the spring and summer months. While the easing of the crisis will positively affect employment, the continuation of the war conditions may limit the contribution.
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