Believe it or not, the remedy for unemployment is structural reforms as well

Most people were so shocked to hear the unemployment statistics yesterday because unemployment rate hits the highest it has been since the since the 2009s: 14.7%

Newly-released unemployment data shows that employment rate has been suffering great damages while indicating that the clandestine employment and the jobless rate are significantly increasing. We, economists, mostly take the nonfarm payroll employment into consideration and according to the data, unemployment rates among white-collar and blue-collar workers continues to rise.

There are two potential risks here: The first one involves economic growth. Turkey faced negative GDP growth in the 4th quarter of 2018. Now, newly-released unemployment data tells us that Turkey may once again suffer negative growth in the 1st quarter of 2019. And the second potential risk involves the quality of employment.

“We are running out of options…”

Seeing that the whole world is about to enter a new era where the blue-collar workers will be replaced with artificial intelligence and robots, Turkey must come to its senses and face the fact that it will go nowhere fast unless it abandons industries that are the most outdated with technology.

I don’t know how Turkey will come up with a permanent solution while it faces the growing burden of unemployment. Turkey must improve itself in many aspects including branding, design, innovation, R&D, technology, sales-marketing, debt collection, logistics, and advertising in order to be able to adapt to global employment trends and stop high employment once and for all.

The good qualities I mentioned above can only prosper in an environment dominated by free thought, true justice and high education. If we are determined to achieve stability then we should start implementing structural reforms at once, without wasting any more time about it.

We have to work to save the future, not to save the day; because it’s the only option we are left with.

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