Expressing the economic success and the goals of government’s Medium Term Programme at the ruling Justice and Development Party’s (AKP) group meeting, President Erdoğan said: “An economic success which does not boost employment has no value in our eyes.”
But what do economic data tell us?
As it is about a big employment campaign which is started by order of the president himself and the economic growth of 5%, economic data should tell us good things, right? Let’s see.
In the last year, employment numbers have increased by more than a million.
But the numbers of Social Security Organisation shows that the number of apprentices, interns and trainees has increased by approximately 1.25 million in the last year. So practically what is rising is not the employment rate but the number of apprentices, interns and trainees.
According to official statistics, the number of unemployed people is 3 million 251 thousand. In truth, however, when you add those who have given up hope to find a job, thus not searching for one, the number of unemployed people is over 5.5 million.
It is always debated that there is a big gap between the growth rate of Turkey’s economy and employment rate. Turkey’s economy just can’t create employment as much as it grows. For example, in the last term, the economy has grown by 5.1%, but in the meantime, the employment rate has risen only by 3.8%.
This is not only the case in this term; it has been the pattern since the AKP came to power 15 years ago. Moreover, the employment created is not even long-term or quality employment but subcontracted, temporary and cheap.
An artificial and uncertain employment is being created with the incentives offered by İŞKUR (official employment agency).
The yearly increase of production is just 3.8% in the manufacturing industry. The rise in employment is only 0.5%.
What an exploitation... What else can be expected from a system which is based on an intensive production by few workers?
Finding permanent jobs in order to decrease the unemployment rate? No! Instead, prolonging the duration of insecure and temporary jobs.
It is true! The opening of credit flows to the banks has caused a doping effect.
It is true! Citizens have spent on loans.
However, investment rates in machinery and equipment have shrunk by 8.6% while the overall investment rates have risen by 9.5%.
That is because investments have grown almost only through construction where the growth rate is 25%, a high rate at the expense of the environment and natural resources.
Non-agricultural unemployment is 13%. It is 25-30% in the cities where the majority is Kurdish.
The problem isn’t just about creating enough jobs. The one side is a heavy workload and cheap labour, and the other is debt. Also, a tax burden has been added to this.
When the budget was used excessively to boost growth, huge deficits have occurred.
The situation is this: External debt is high and the budget is in deficit!
When that’s the case, increase the taxes!
High inflation... High unemployment rates.
If not enough, load the heavy burden of excessive budget deficit and current account deficit onto people’s shoulders.
Do nothing about the hot money flow, intensive production with few workers, or the production model based on cheap labour!
One cannot know what these facts mean for the president, but for the working people of this country, the case is clear: What’s the use of this economic success!
Bülent Falakaoğlu
Hakkı Özdal
