Unemployment: a top priority risk…

As you may remember, a few weeks ago, I wrote an article on ten risks that all global investors should know. High jobless rate and lack of employment were on the top of the list. So, I think that’s the point of view we should take when observing unemployment statistics which are released yesterday.

Here’s the first thing that caught my eye when looking at the figures today: Although employers were not able to provide jobs to all of the job seekers in the past, the employment rate used to rise even for just a little bit as the employers created a certain number of positions for certain number of people despite the increasing rate of unemployment. However, we are facing a whole new thing today: Unemployment rate keeps rising while employment continues to fall.
The above-mentioned phenomenon almost became a key indicator especially for international investors as to whether or not engage in any investment activity in Turkey. If unemployment rate remains pretty high while employment keeps going down in any country in the world, this stands out as an instant warning sign for investors, telling them to avoid investing.

It doesn’t also go unnoticed that the old promises, remember when government promised plenty of jobs for everyone, did not actually work out. A lot of people are losing their jobs, in addition to the existing and increasing number of people who weren’t able to find any jobs.

“Millennials don’t want authoritarian bosses…”

Although the recent statistics in youth employment is as striking as it seems, the reason for the increasing number of the unemployed is actually not economic deterioration. Most of the Turkish companies can’t offer millennials anything promising, inspiring for the future. Young people now prefer more flexible jobs rather than working for authoritarian bosses within hierarchical structures.

Sadly, some employers still make future plans for their factories, manufacturing plants, but in the next ten or twenty years, the blue-collar workers will be replaced with artificial intelligence and robots. These employers are not even aware of the fact that their companies will pass into history, very soon. Millennials can see it, but employers can’t. So, youth unemployment in Turkey remains today as both inevitable and facultative.

I always suggest young people to go work for visionary and innovative firms which sadly seem to be quite scarce.

In short, even though we see retail and industrial sectors are making efforts to achieve continuous improvement, the recent unemployment data shows that this isn’t the situation in youth employment. We might have to wait for a very long time to see unemployment rate to fall and employment rate to achieve steady upward movement.