Unemployment up slightly to 9.4 pct in May

Published 15.08.2016 22:39

According to Turkish Statistical Institute (TurkStat) data released Monday, the unemployment rate in May rose 0.1 percent to 9.4 percent year-on-year, backed by a 0.8 percent increase in labor force participation to 52.5 percent year-on-year. The number of unemployed people aged 15 and over rose to 2.89 million in May 2016, an increase of 106,000 from the previous year, while the number of people in the labor force amounted to 30.76 million, an increase of 902,000.

Unemployment rose 0.1 percent from April. The employment rate increased 0.6 percent to 47.5 percent from last year, as Turkey added nearly 800,000 jobs. The number of employed was 27.87 million, an increase of 795,000.

Özlem Bayraktar Gökşen, chief economist at Tacirler Investment, said: "Unemployment figures in seasonally adjusted terms showed some deterioration in May, rising toward 10.2 percent from the previous period's 9.8 percent, although remaining constant compared to May 2015." Gökşen said that the non-agricultural unemployment rose to 12.2 percent from April's 11.7 percent. "As for employment generation, the sectoral employment figures in seasonally adjusted terms showed the increase has continued in non-farm sectors, mainly in the services sector side, although at a slower pace. Unemployment figures show significant improvement, with one million jobs generated in non-farm sectors over the last year, a main driver behind the economic growth."

Mehmet Ali Güleç, an analyst at Istanbul-based Strateji Securities, said: "It would be more useful to concentrate on additional job opportunities created by the economy instead of monthly changes in unemployment statistics, especially in the globally troubled environment, in terms of providing the young population with new jobs. Despite recent adverse events, I believe that unemployment figures will show a positive trend as a result of improvements in the investment climate thanks to government measures.

KapitalFx analyst Enver Erkan said: "The rise in July unemployment is due to more people joining the labor force."

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