INCREASE IN THE EMPLOYMENT, DECREASE IN THE LABOR FORCE, RECORD FALL IN THE UNEMPLOYMENT RATE
Seyfettin Gürsel, Hamza Mutluay, Mehmet Cem Şahin
In June, the number of persons in employment rose by 602 thousand, while the level of labor force decreased by 222 thousand, and the number of unemployed people reduced by 823 thousand. As a result, the unemployment rate receded by 2.5 percentage point (pp) on month-over-month basis to 10.6%. Over the last two months, the cumulative fall in the labor force level exceeded 550 thousand, whereas the employment level increased by about 540 thousand. According to the sectorial data, the number of persons in employment increased in all the sectors, and the gap between the employment level in the services sector and its pre-Covid levels narrowed down. Employment level in the manufacturing sector exceeded 6 million again with a new record, while the increase in the level of construction employment has been limited to 8 thousand.
Female unemployment rate (seasonally adjusted) decreased by 1.2 pp to 14.1%, whereas male unemployment rate (seasonally adjusted) fell by 3.1 pp to 9%. Both female and male employment increased. On the other hand, female labor force participation rate (LFPR) increased, whereas male LFPR decreased. As a result of that dramatic decline in the male labor force, the gender gap in the unemployment rate widened by 2 pp to 5.2%. Male LFPR declined for the third consecutive month, female LFPR remained below its levels prior to the coronavirus.
doc. LaborMarketOutlook2021M08