Turkish unemployment rate drops to lowest level since April 2018

Turkey’s jobless rate declined to 10.3 percent in June, the lowest level in more than four years, according to data published by the Turkish Statistical Institute.

Seasonally-adjusted unemployment fell from 10.6 percent in May and from 10.9 percent in June last year, the institute said on Wednesday. The total amount of people unemployed and looking for work stood at 3.54 million, a decline of 136,000 from May.

The Turkish government has sought to stimulate economic growth and hiring by ordering the central bank to cut interest rates and then instructing state-run banks to lend cheaply to industry. The policy has helped boost industrial output but has led to a surge in inflation, which reached 79.6 percent in July, and a slump in the value of the lira.

The jobless rate fell as less people were employed or available to work. The institute said 182,000 fewer people were in the labour force, which totalled 34.4 million in June.

Youth unemployment was 20.4 percent, unchanged from the previous month, the institute said.

A currency crisis struck Turkey's economy in August 2018. The lira has lost more than a quarter of its value against the dollar this year after dropping by 44 percent in 2021.

The lira was trading down 0.4 percent at 17.96 per dollar on Wednesday.

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