Seasonally adjusted underemployment index value increased by 5.8 points to 88.7

ANKARA – TEPAV identifies that underemployment increases alongside unemployment in Turkey.

The TEPAV Employment Monitoring Bulletin reports that the rapid upwards trend observed in the seasonally adjusted underemployment index value ongoing since early 2012 continued also in May 2013. The index value increased by 5.8 months in a month, finally rising to 88.7.

Stressing that underemployment is another important indicator of supply-demand dynamics in the labor market, the Bulletin said:

“Underemployment index measures the ratio of the part- or full-time employed labor force willing to have longer working times. Therefore, it is an indicator which shows how much the potential of the labor force is under-utilized.

TURKSTAT has been releasing underemployment statistics since January 2009 as i) time related underemployment referring to people who worked less than 40 hours per week and willing to work additional hours and ii) inadequate employment referring to people employed but also looking for another or an additional job. Earlier statistics are not comparable.”

Companies generate new employment opportunities

On the other hand, the ratio of open posts as announced by the Turkish Employment Agency to registered unemployed increased to 293 as of May 2013. This implies a boom in the new posts. The increase in new job opportunities against unemployed is considered a positive development concerning the potential of the corporate sector to generate new jobs.

The Bulletin assessed:

“Seasonally adjusted series suggest that 1,156,000 people joined the labor force between May 2012 and May 2013, and the total labor force grew to 28,399,000 people. Labor force participation rate increased by 1.3 points to 51.2 percent.

In tandem with this, 883,000 people found jobs over the examined 12 month period whereas the number of unemployed increased by 273,000. Unemployment rate hence climbed from 9 percent in May 2012 to 9.6 percent in May 2013.”