Turkey's unemployment rate hits seven-month high in October, reaches 10.5 pct
by Daily Sabah
ISTANBULJan 15, 2016 - 12:00 am GMT+3
by Daily Sabah
Jan 15, 2016 12:00 am
The unemployment rate increased slightly in October by 0.2 percent, according to data released by the Turkish Statistical Institute (TurkStat) on Friday. The unemployment rate rose to 10.5 percent in October from 10.3 percent in September, according to data, which considers unemployed people aged 15 years old and over.
While the unemployment rate follows an upward trend, the employment rate has also increased. The rate increased 0.5 percent to 46.2 percent in October compared to the same month of the previous year, since Turkey added 718,000 jobs. The labor force participation rate rose 0.6 percentage point in October year-on-year, to 51.6 percent. The number of women participating in workforce increased 0.9 percent from the previous year to 31.8 percent.
Speaking to Anadolu Agency (AA) economist Haluk Burumcekci said: "Non-farm employment growth in the services sector continues to be the locomotive, but the contribution of the industry is significantly limited." Burumcekci added that the negative effects of the minimum wage hike may cause employers to slow hiring in 2016. Meanwhile, the minimum wage is to rise to TL 1,300 ($428.73) per month in 2016 from about TL 950 in 2015.
In the same period, the non-agricultural unemployment rate was 12.6 percent with a 0.1 percent increase. While the youth unemployment rate, including the 15 to 24 age group stood at 19.3 percent, decreasing 0.4 percent, and the unemployment rate for the 15 to 64 age group was 10.7 percent with a 0.1 percent increase.