Turkish labor market sees growth and increased costs in Q3 2024

According to recent data, the employment index, which encompasses the industrial, construction, and trade-services sectors, increased by 3% compared to the same period last year.

Breaking down the figures by sector, the industrial sector experienced a slight decrease of 0.5%, while the construction sector saw a robust 7.4% growth. The trade-services sector also posted a notable increase of 4.1%.

Despite the rise in employment, the hours worked index showed a slight decline, dropping by 1.1% year-on-year. The industrial sector reported the most significant decrease, with a 4.1% drop in hours worked. However, the construction sector bucked the trend with a 2.8% increase, while the trade-services sector remained largely stable with a minor decline of 0.2%.

In terms of wages, the gross wages-salaries index surged by 74.7% compared to the previous year. All sectors saw significant increases: the industrial sector rose by 73.9%, the construction sector also by 73.9%, and the trade-services sector by 75.2%.

Quarterly comparisons also indicate growth in various employment and wage metrics. The employment index rose by 0.8% from the second to the third quarter of 2024, with the industrial sector increasing by 0.2%, the construction sector by 1.3%, and the trade-services sector by 1%.

The hours worked index grew by 0.4% compared to the previous quarter, with the industrial sector seeing a modest increase of 0.2%, while the construction sector posted a stronger rise of 2.6%. The trade-services sector, however, showed no change.

Gross wages and salaries continued to rise, with an 8.8% increase in the third quarter compared to the second. The construction sector saw the highest quarterly growth at 9.3%, followed closely by the trade-services sector at 9.2% and the industrial sector at 8.1%.

Additionally, hourly labor cost indices also saw significant increases. The hourly labor cost index rose by 76.9% year-on-year, with the industrial sector experiencing the largest rise of 82%. The construction sector's hourly labor cost increased by 69.9%, while the trade-services sector saw a 75.5% increase.

Hourly earnings also experienced a significant year-on-year jump of 76.6%. The industrial sector led the growth with an 81.4% increase, followed by the trade-services sector at 75.5% and the construction sector at 69.1%.

Excluding earnings, the hourly labor cost index surged by 78.2% year-on-year, with the industrial sector seeing the highest increase at 85%. Both the construction and trade-services sectors also saw notable growths of 73.5% and 75.4%, respectively.

In terms of quarterly growth, the hourly labor cost index rose by 9%, with the industrial sector increasing by 8.9%, the construction sector by 6.9%, and the trade-services sector by 9.5%. Hourly earnings increased by 8.4%, with the industrial sector seeing a 7.8% increase, construction growing by 6.5%, and trade-services posting a 9.2% rise.

The hourly labor cost excluding earnings saw the largest quarterly increase, rising by 12%. The industrial sector led with a 14.5% rise, followed by the trade-services sector at 10.9%, and the construction sector at 8.8%.

These statistics underscore the continuing growth in the Turkish labor market, with particular gains in construction and trade-services, although the industrial sector faced challenges in terms of hours worked and labor costs. (ILKHA)