Economy, employment in industry

Unemployment in Turkey stands at 13.4%

In April, Turkish government temporarily banned layoffs at companies to combat the effects of the coronavirus pandemic.

The unemployment rate in Turkey reached 13.4% of the workforce, according to the latest data published by the Turkish Statistical Institute (TÜİK) for the month of July, showing a drop of 0.5 percentage points compared to the previous month, June.

According to the report presented this Monday by TÜİK, the number of unemployed people over 15 years of age among the active population of Turkey decreased in July by 369,000 people compared to the same month of the previous year, reaching 4.22 million. On the other hand, the labor force participation rate reached 50.3%, 1.3 points more than in June but 3.5% less in relation to July 2019.

The data show that non-agricultural unemployment fell to 15.9%, compared to 16.5% a year earlier; likewise, youth unemployment – which encompasses the age group between 15 and 24 years – was reduced from 27.1% in July 2019 to 25.9% this year.

Regarding the employment rate in Turkey, it stood at 43.5% in July, representing a decrease of 2.9% compared to July 2019. Regarding the distribution by productivity sectors, in July 2020 a 54.9% of the people who worked in the Eurasian country did so in the services sector, 19.6% in industry, 19.4% in agriculture, and 6.1% in construction.

Government expects unemployment to reach 13.8% in 2020

Last April, the Turkish government imposed a ban on firing for companies during an initial period of 3 months to combat the economic effects of the coronavirus pandemic; in July, parliament ratified a law authorising President Tayyip Erdoğan to extend the ban for 3-month periods until June 30, 2021.

Under this law, the government is responsible for a period of 3 months for paying 60% of the wages of workers who have had to reduce their working hours due to the COVID-19 pandemic; for now the Turkish president has extended the measure until the end of October. In its economic program presented in September, the Turkish government forecasts that the unemployment rate in Turkey will reach 13.8% by the end of 2020.