Home / Economy / The Hiring Campaign, Initiated by Erdogan, Did Not Work Out Well

The Hiring Campaign, Initiated by Erdogan, Did Not Work Out Well

Hiring campaign initiated by Erdogan’s call to the business world reduced unemployment by 85,000 only. According to employment statistics reported by Turkish Statistics Institute (TUIK), new jobs at the industrial sector was 23,000 fewer this month than previous one.

Neither the hiring campaign nor the incentives to the companies for hiring new employees as well as none of the subsidies from Unemployment Fund remedied the unemployment rate. A call made by President Recep Tayyip Erdogan on 7th February for a reduction in the level of unemployment added only 85,000 jobs in its first month. According to jobs report by TUIK, the unemployment rate reduced to 12.6% in February 2017 from 13% in January 2017 in spite of all the incentives granted to the companies and of hiring campaign. A year ago, the unemployment rate excluding agriculture sector was around 12.7%. After reaching 15.2% in January 2017, the unemployment rate decrease to 14.8% in February.

No mobilization in the industrial sector

According to the same job report, the employment in the industry sector was 23,000 fewer in February than the previous month. The highest increase of the jobs was in the agriculture sector by 143,000. The cost of an employee with minimum wage to the employer was reduced to 1404TL by 773TL as a result of the campaign incentives started by Erdogan’s call. The cost of this incentive was predicted to be 12.3 billion TL whose 11 billion will be compensated by the Unemployment Fund.

Real unemployment reached to 7 million

Research Institute of Confederation of Progressive Trade Unions of Turkey (DISK-AR) has outlined their findings as follows while evaluating the job reports data:
– 676,000 people joined the army of the unemployed in a year whereas 715,000 unemployed stopped looking for employment. The official number for unemployment is 3.9 million, but the actual number is close to 7million. While the unemployment rate is officially 12.6%, this rate is as high as 20.9% in reality.
-The job report by TUIK reflects the level of unemployment regardless of gender or age group with or without agriculture sector. In fact, the unemployment is much higher in cities and among young and women.
-Data provided in the job report indicates that all incentives granted by the government as a result of hiring campaign did not result in any significant impact on the unemployment rate.
-There are serious discrepancies between the data provided by two sources: TUIK and Social Security Institution (SGK)

Goal was 1.5million

It was aimed to have 1.5million new jobs created in addition to the education of 500,000 people for new employment when President Recep Tayyip Erdogan initiated the “hiring campaign” on 7th February. Under this campaign, Mehmet Muezzinoglu, the Minister of Labor and Social Security stated that approximately 1 million new jobs are created in the first four months of the year. Pointing out the positive impact of the “hiring campaign” in the unemployment rate in February, Bulent Tufenkci, the Minister of Customs and Trade, mentioned that the initial data is very promising.

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