Türkiye's unemployment rate declined in November of last year, official data showed on Friday, indicating a still relatively stable labor market nearly a year and a half into the government's shift to aggressive tightening policies.
The unemployment rate declined by 0.1 percentage point to 8.6% in November from 8.7% in October, according to the Turkish Statistical Institute (TurkStat).
The number of jobless dropped 84,000 from October to 3.07 million, the data showed. The unemployment rate for men stood at 7% and 11.7% for women.
Authorities had delivered aggressive interest rate hikes and other tightening measures since mid-2023 to tame runaway price rises.
But officials pledged to take measures to limit the temporary negative impact on the labor market.
The country's central bank launched its easing cycle last month, cutting its benchmark policy rate by 250 basis points to 47.5%, as annual inflation heads down.
Between mid-2023 and last year, strong inflation and currency market pressures had seen it ramp rates right up to 50% from 8.5%.
With inflation slowing, the bank is seen continuing with rate cuts, economists say.
The number of people in the labor force dropped by 252,000 to 35.82 million, the TurkStat said on Friday.
The labor force participation rate stood at 54.2% in November, falling 0.4 percentage points from the previous month. This rate was 72.1% for men and 36.7% for women.
The employment rate slightly edged down by 0.2 percentage points to 49.6%, the TurkStat said. This rate was 67.1% for men and 32.4% for women.
The number of employed persons decreased by 168,000 to nearly 32.75 million in November.
Youth unemployment, defined as those aged 15-24, decreased 0.5 percentage points to 15.8%. The rate was 11.9% for males and 23% for females.
Türkiye raised the net monthly minimum wage for 2025 by 30% to TL 22,104 ($627). The hike fell short of the workers' union demand but, economists say, showed the government's determination to reach disinflation targets.
Analysts saw it as a major test for the government and its commitment to reining in inflation, which eased more than expected in December to end 2024 at nearly 44.4% on an annual basis.
It marked the weakest reading since June 2023 and hit the central bank's midpoint target of 44% for year-end.
The government said the minimum wage level was set to maintain fiscal discipline and continue the fight against inflation. The workers' union had requested an increase of around 70%.
A large rise would have helped workers claw back real income losses, but could have stoked labor costs for businesses, leading to potential layoffs.
