Returning to the trend, nonfarm employment decreased 1.4 percent in the second quarter of 2008, after bucking the trend with 2.1 percent growth in the fırst quarter. It was suggested as a reason for overall contraction in second-quarter nonfarm Gross Domestic Product, or GDP.
The non-farm labor market has been witnessing contraction since the second half of 2007 and this contraction trend continues throughout 2008 with limited employment increasing for the second quarter of 2008.
The growth rate was extremely high for the first quarter of 2008 and is likely to decline to a level of 4.5 percent, according to a survey by Bahçeşehir University's Economic and Social Research Center, or BETAM. The survey revealed that annual nonfarm employment increased in 2007 to 442,000 people, while this number is expected to increase by merely 0.3 percent for the second quarter of 2008.
The employment increase in the wage earners continues despite at a slowing pace. The annual employment increase in wage earners amounted to 509,000 people. This increase stood at 0.4 percent and 0.7 percent for the last two quarters of 2007, respectively parallel to the contraction in the growth of GDP, while this level accelerated to 2.1 percent for the first quarter of 2008 in tandem with the rising growth in GDP.
Meanwhile, the employment increase in wage earners was expected to stand at 1.4 percent for the second quarter of 2008. This contraction also indicates a potential slow down in growth. Meanwhile, the number of unemployed people increased by 41,000 reaching 2,164,000 for May 2008 compared to the same period of the previous year, according to data from the Turkish Statistical Institute, or TÜİK, released Friday.