Unemployment rate stands still, labor force and employment rise

Published 17.11.2014 23:57
Unemployment rate stands still, labor force and employment rise

The seasonally adjusted unemployment rate was announced as 10.4 percent for August, above the euro area’s rate of 11.5 percent while Turkish government is seeking for an average of 9.6 percent by the end of the year

According to the data released by the Turkish Statistical Institute (TurkStat), in the period of August 2014, the number of seasonally adjusted unemployed persons decreased by 11,000 people while the unemployment rate reported was 10.4 percent without any change. The amount of seasonally adjusted employed individuals increased by 53,000 to reach 25,835,000 compared to the previous period and the seasonally adjusted employment rate was reported as 45.2 percent without any change. The unemployment rate is sitting at 10.1 percent and the number of unemployed persons aged 15 and over was reported as 2,944,000 in the period of August 2014 in Turkey, with the unemployment rate hovering at 8.9 percent for males and 12.7 percent for females. In the same period, the non-agricultural unemployment rate was 12.3 percent, and the youth unemployment rate including the 15-24 age group was at 18.9 percent while the unemployment rate for the 15-64 age group was as 10.3 percent.

According to the data released by Eurostat it is estimated that 24.51 million men and women in the EU-28, 18.35 million of who were in the euro area EA-18, were unemployed in September 2014. Compared with August 2014, the number of persons unemployed decreased by 108,000 in the EU-28 and by 19,000 in the euro area. Compared with September 2013, unemployment fell by 1.82 million in the EU-28 and by 826,000 in the euro area.

The euro area's seasonally-adjusted unemployment rate was 11.5 percent in September 2014, stable compared with August 2014 but down from 12.0 percent in September 2013. The EU-28 unemployment rate was 10.1 percent in September 2014, also stable compared with August 2014 and down from 10.8 percent in September 2013. Among the Member States, the lowest unemployment rates were recorded in Germany (5.0 percent) and Austria (5.1 percent), and the highest in Greece (26.4 percent in July 2014) and Spain (24.0 percent). According to the data released by the Bureau of Labor Statistics of the U.S., total nonfarm payroll employment rose by 214,000 in October, and the unemployment rate edged down to 5.8 percent.

According the data released by the Statistics Bureau of Japan, the number of unemployed persons in September 2014 was 2.33 million, a decrease of 250,000, or 9.7 percent, from the previous year and the unemployment rate, seasonally adjusted, was 3.6 percent.

The chairman of the Independent Industrialists' and Businessmen's Association (MUSİAD), Nail Olpak expressed his views on the unemployment data announced yesterday. Speaking to Anadolu Agency Olpak stated that while their annual estimates for unemployment was around 8.7 percent; the figures for August were higher than their expectations. "Entering into double figures for unemployment becomes a psychological barrier, which is not good. However, the participation rate to work force ratio is also increasing and this as a result, relatively pushes the figures up," said Olpak.

Stating that double-figure unemployment rates have a negative effect on the perception of the work force, Olpak added; "While the average unemployment rate is around 12 to 13 percent in the European Union, 10 percent is not a bad figure under these circumstances. Some may ask 'Why isn't unemployment around 5 percent? Don't the citizens deserve better?' These may be valuable questions, but I don't think this is a bad picture since the workforce is expanding," said Olpak. According to the Medium-term Economic Program, which had been announced by Turkish Deputy Prime Minister Ali Babacan on Sept. 8, it was estimated that this year's average unemployment rate would be 9.6 percent and with gradual rises in the labor force participation rate taken into consideration, it is expected that unemployment will drop to 9.1 percent in 2017.

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