Muhammet Mercan, Chief Economist at ING, notes that the seasonally-adjusted (SA) unemployment rate of Turkey that remained relatively flat in the early months of 2018 has shown growing strain, with an increase to 10.9% in June- the highest in a year.
Key Quotes
“The deterioration in the unemployment rate from 10.6% a month ago shows that the labour market is failing to keep up with the growing labour force. Meanwhile, the participation rate has jumped to an all-time high of 53.2%, even as employment has increased.”
“The unadjusted unemployment rate, on the other hand, was 10.2%, unchanged from the same month of the previous year, showing that annual employment generation has been losing pace, which supports the view of worsening conditions in the labour market.”
“We expect the deterioration in labour market conditions to remain in place given that growth is losing significant momentum, likely turning negative on a sequential basis in 3Q.”
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