August Unemployment Rates in Turkey Decrease
The Turkish Statistical Institute (TÜİK) recently released the labor force data for August 2024, showing promising trends in the country’s unemployment rates. According to the Household Labor Force Survey, the number of unemployed individuals aged 15 and over decreased by 89,000 compared to the previous month, reaching a total of 3,055,000 people. The unemployment rate also saw a decline of 0.3 percentage points, dropping to 8.5%.
Increase in Employment Numbers
On a positive note, the number of employed individuals in August 2024 increased by 78,000 compared to the previous month, totaling 32,776,000 people. This resulted in an employment rate of 49.7%, marking a 0.1 percentage point increase. The employment rate for men stood at 67.1%, while for women, it was 32.6%.
The labor force in August 2024 decreased by 10,000 individuals compared to the previous month, totaling 35,831,000 people. The labor force participation rate also saw a slight decline of 0.1 percentage points, reaching 54.3%. The labor force participation rate was higher for men at 72.1% compared to women at 36.8%.
Rise in Youth Unemployment
The unemployment rate among the youth population aged 15-24 increased by 0.1 percentage points compared to the previous month, reaching 16.5%. Within this age group, the unemployment rate was estimated at 13.8% for men and 21.4% for women. The seasonally and calendar-adjusted average actual weekly working hours were recorded at 42.7 hours.
For those employed during the reference period, the seasonally and calendar-adjusted average actual weekly working hours in August 2024 increased by 0.1 hours compared to the previous month, totaling 42.7 hours.
Expansion of Broadly Defined Unemployment
The broadly defined unemployment rate, known as time-related underemployment, potential labor force, and idle labor force, increased by 0.7 percentage points in August 2024, reaching 27.2%. The integrated rate of time-related underemployment and unemployed individuals stood at 18.2%, while the integrated rate of unemployed and potential labor force was estimated at 18.7%.
The decrease in the overall unemployment rate and the increase in employment numbers reflect positive trends in Turkey’s labor market. However, challenges remain, especially concerning youth unemployment and the broader definition of unemployment.
The decrease in the unemployment rate to 8.5% is a positive development for the Turkish economy, indicating a gradual recovery from the impact of the global pandemic. The increase in employment numbers, especially in key sectors, is a promising sign for economic growth and stability.
While the overall labor market trends are positive, it is essential to address specific challenges, such as the high youth unemployment rate. Investing in education, vocational training, and skill development programs can help reduce youth unemployment and create more opportunities for young people entering the workforce.
The increase in broadly defined unemployment highlights the need for targeted policies and initiatives to address underemployment, potential labor force issues, and idle labor force participation. By implementing measures to boost job creation, improve working conditions, and enhance labor market flexibility, Turkey can further strengthen its economy and create a more inclusive labor market.
As Turkey continues to navigate the challenges of the post-pandemic recovery, policymakers, businesses, and stakeholders must work together to ensure sustainable and inclusive growth in the labor market. By promoting innovation, entrepreneurship, and investment in human capital, Turkey can build a resilient and dynamic workforce that drives economic prosperity and social development.
In conclusion, while the August unemployment rates in Turkey have shown positive trends, there is still work to be done to address specific challenges and create a more inclusive and sustainable labor market. By implementing targeted policies, investing in education and training, and promoting job creation, Turkey can build a stronger and more resilient economy for the future.
