P.A. Turkey

Macro Snapshot: Labour Force Statistics

Labour force decreased by 22k MoM to 33.8mn and participation rate decreased by 0.1 MoM to 52.6%.

Employment decreased by 43k MoM to 29.9mn and employment rate decreased by 0.2pps MoM to 46.5%.

Total number of unemployed increased by 21k MoM to 3.9mn whereas unemployment rate remained stable at 11.4%.

Youth unemployment rate remained stable at 21.6%. Composite measure of labour underutilization, a broad unemployment indicator, increased by 0.1pps MoM to
22.9%. Combined rate of time-related underemployment (Persons who worked less than 40 hours and willing to work additional hours) and unemployment increased by 0.1pps to 15.7%. Combined rate of unemployment and potential labour force (neither employed nor unemployed people who look for a job but not able to start work, who want to work even though not look for a job and who able to start work) increased by 0.1pps to 19%.

Accordingly, composite measure of labour underutilization (ratio of sum of unemployed, time-related underemployment and potential labourforce to sum of labourforce and potential labour force). increased by 0.1pps to 22.9%.

In January, weekly average hours increased to 45.3 and almost reached to historical average (Prior: 45.1, 2014-2021 avr.: 45.4). Employed at work to total employment ratio decreased from 95.4% to 94.4% (2014-2021 avr.: 95%)

Despite recent strong growth figures in 2021, unemployment rate still continue to remain above of the historical averages. Lagged impacts of the recent losses in the Lira, potential negative pressure on the registered employment due to the recent rise on the minimum wage level, potential deceleration on the domestic demand due to the ongoing high inflation environment
and potential momentum loss on the external demand due to Russia-Ukraine War and Fed’s normalization actions could put a negative pressure on the employment Outlook in the coming period.

 

 

Y. F. Securities Research