DISK-AR reports that the GDP grew only a meager 1.6% compared to the same period last year. This will affect the employment numbers negatively and will cause further unemployment

DISK-AR, the research department of the Progressive Confederation of Labor Unions in Turkey published a study on the effects of the economic crisis.

The study published on February 8^th 2019 emphasizes that the economic stagnation comes at a time of economic contraction, hyperinflation, and high unemployment.

DISK-AR reports that the GDP grew only a meager 1.6% compared to the same period last year. This will affect the employment numbers negatively and will cause further unemployment.

The following are the summary of findings in the economic report of the DISK-AR, the Progressive Confederation of Labor Unions:

1. Crisis hit the industrial production worst: The industrial production in November 2018 is 6.5% lower than the previous year. This leads to a prediction of increased unemployment.
2. Crisis is causing a fall in the capacity utilization: The capacity utilization was 74% in December 2018 while the figure was 5% higher the previous year.
3. Turkey is the leader in inflation: Turkey has become the leader in the highest consumer goods prices in the OECD countries. The electric utility cost increased 45% in 2018. Natural gas prices also increased by 31% in the same year.
4. Increase in credit interests reduced the demand: The average consumer credit in December 2018 was 19.6%. Personal finance credit at the same period was 33%.  Vehicle loan credit interest rate jumped from 13% to 20% in just two years.  Mortgage interests also soared from 11% to 18%.  Loans for business also saw an increase from 14% to 28%.
5. Home sales stopped, construction sector collapsed: Mortgaged home sales dropped a staggering 79% compared to 2017. While there were 47,000 homes sold in June of 2018, the total number of home sales were only 7,000 units in December 2018.
6. Employment in construction fell: 487,000 jobs were lost in construction between January 2018 and January 2019. Currently there are 1,260,000 people employed in construction.
7. Consumer confidence index took a dive: This indicator fell 7 points in a year from 65 to 58 points.
8. Confidence in economy saw a steep fall: The confidence people had on economy was 95% in December 2017. The last figures in the same month in 2018 took a 20-point fall and registered 75%.
9. Turkey is 3^rd in unemployment figures in OECD countries: Unemployment rate of 11% makes Turkey the 3^rd highest in the OECD countries. Spain leads other countries with a 15% and Greece follows with 18.9% unemployment rate.
10. Crisis added half-a-million new unemployed to the already high unemployment figures: With the addition of 517 thousand new unemployed workers the number of people without a job is now 6.4 million.  When the agriculture is removed from calculations, the unemployment jumps to 13.6%.  The youth lead in the age grouping of unemployed people with 22.3% and the young women outside of agriculture is 33%.
11. Number of open job positions declined: While available open jobs were 2,691 thousand in 2018 January, December saw this figure decrease to 2,394 thousand. This corresponds to an 11% decline.
12. Application for unemployment payments increased: The number of applications to collect unemployment payments increased by 80% reaching 211,000 by December 2018.
13. Unemployment fund started giving more than it receives: The payments to unemployed workers saw a dramatic increase especially in the second half of the year driving the payments to be more than 1.5 billion TL than the deposits.
14. Minimum wage is at the rate of hunger rate: In February of 2017 the level of income at the border of hunger was 1658 TL ($312.00) per month. This figure increased to 1957 TL ($369.00) in January 2019.  Poverty level also increased from 5738 TL ($1082.00) in February 2017 to 6758 TL ($1275.00) in January 2018.  This makes the minimum wage at 2020 TL ($381.00) for 2019 decline back to the level of hunger.
15. People are defaulting on their credit card payments: The number of defaults on credit card payments increased from 152,000 in October of 2017 to 184,000 in October of 2018.
16. Crisis causes suicides: Many worker actions were staged due to layoffs and unpaid wages. At least 6 people attempted suicide due to economic hardship.  3 of these people lost their lives.     

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