Turkey Jobless at 12.7%, Youth Rate at 24%
Turkey’s unemployment rate hit 12.7% in December, rising by 1.9 percentage points year-on-year, while youth unemployment stood at 24%, state agency Turkstat reported.
In November, the jobless rate was at 12.1% and was already the highest in seven years, news.com.au reported.
The number of 15-24 year olds who were neither employed nor in education was at 24.8%. The labor force participation rate came in at 51.6%.
Rising unemployment has been coupled with Turkey’s worst economic slump since 2008, with growth shrinking by 1.8% in the third quarter.
The lira has also been the worst performing emerging market currency of 2017, heaping inflationary pressures on the economy and posing a headache for the country’s central bank which will make its latest monetary policy decision on Thursday.
Analysts are expecting no change to the Central Bank of the Republic of Turkey’s three main interest rates after it eased credit conditions with a rate cut in January. Still, the lira has taken a fresh blow this week after the Turkish government has been engaged in an almighty diplomatic row with the Netherlands.
Following a series of weekend spats–where Turkey’s finance minister was barred from entering the country and its family minister turned away at the border–Ankara has now refused entry to the Dutch ambassador and blamed Dutch troops for the massacre at Srebrenica.
As tensions continue to rise between Turkey and Western Europe, an economic slump is gathering pace in the country. Foreign investment is crashing, and unemployment and inflation are hitting the masses hard.