The unemployment rate in Turkey in March was 13.2%, decreasing 0.1 points from 13.2% in the same month of last year. When compared to the previous month, it is seen that the adjusted unemployment rate decreased by 0.3 points. While the unemployment rate among the young population was 25%; Non-farm unemployment stood at 14.9%.
When we look at the comparable periods March 2020 – March 2021, it is seen that there is a 2.3 point increase in the labor force participation rate between the relevant periods with adjusted data. The workforce, which was 30 million 316 thousand people in the similar period of 2020, became 32 million 325 thousand people in March 2021. Labor force participation rate increased from 48.7% to 51%. Again, looking at seasonally adjusted data; While the employment rate increased by 1.9 points compared to the same period of the previous year and became 44.3%, there was an increase of 1 million 726 thousand people in seasonally adjusted employment compared to the previous month.
After the increase seen in the previous month, a decrease is observed in the general unemployment rate and the non-farm unemployment rate. On the other hand, we see that the idle workforce fell faster this month, from 28.1% to 25.8%, which is a positive development as long-term unemployment shows that the rate of returning to workforce is increasing. Although youth unemployment has dropped to 25%, it remains very high. Of course, it is not possible to break the cycle in terms of youth unemployment, except by increasing sustainable real growth and employment in value-added areas. Every year, we face the problem of long-term unemployment of those who graduate from universities and participate in the workforce due to problems such as non-compliance with the conditions, lack of diversity in employment areas and limited employment supply.
Considering that the opening is expected after the holiday as of the season, the service sector will increase its activity again and there will be some employment entry with the effect of this. With the opening of the tourism season and the re-activation of businesses such as cafes, bars and restaurants, we can see some improvement in the current unemployment rates in the summer months. We will see the improvement effect very limited due to the employment loss that will occur when the employment incentives and the dismissal ban are lifted. It will not be easy for the labor market to get out of the pandemic dynamics and reach the pre-pandemic dynamics.
Kaynak Tera Yatırım
Hibya Haber Ajansı
Kaynak: Hibya Haber Ajansı
