Labor Input Index Released: Annual Employment Growth at 3%
The report on Labor Input Indices for the third quarter of 2024, released by the Turkish Statistical Institute (TÜİK), revealed significant changes in employment, hours worked, wages, and salaries. According to the report, remarkable increases were recorded in various indices in the industrial, construction, and trade-service sectors.
Annual employment increased by 3%, quarterly by 0.8% The employment index for the industrial, construction, and trade-service sectors showed a 3% increase in the third quarter of 2024 compared to the previous year. When examining the subsectors, the employment index in the industrial sector decreased by 0.5%. In contrast, the construction sector saw an increase of 7.4%, and the trade-service sector recorded a 4.1% increase. On a quarterly basis, the overall employment index rose by 0.8%, with increases of 0.2% in the industrial sector, 1.3% in the construction sector, and 1% in the trade-service sectors.
These data indicate an increased demand for labor in the construction and trade-service sectors while signaling a decline in employment in the industrial sector. The strong growth in the construction sector is seen as an indicator of revitalization within the sector.
A decrease in hours worked annually, while a quarterly increase was observed As of the third quarter, the hours worked index decreased by 1.1% compared to the same period last year. In the industrial sector, this decline reached 4.1%, while the construction sector experienced an increase of 2.8%. In the trade-service sectors, a decrease of 0.2% was recorded. In quarter-on-quarter comparison, a total increase of 0.4% was observed. The industrial sector saw a 0.2% increase, the construction sector recorded a 2.6% rise, while working hours in the trade-service sectors remained unchanged.
These figures suggest that production conditions may have changed in the industrial sector, while the increase in working hours in the construction sector stands out as another indicator of vitality in that sector.
Remarkable increases in gross wages and salaries According to the report, the gross wage-salary index increased by 74.7% year-on-year. This increase was 73.9% in the industrial and construction sectors, and 75.2% in the trade-service sectors. Quarterly, the gross wage-salary index showed an overall increase of 8.8%. In the industrial sector, this increase was 8.1%, in the construction sector 9.3%, and in the trade-service sectors 9.2%.
These rates indicate a significant rise in wages across all sectors, suggesting an increase in personnel costs. This situation may lead to improvements in the purchasing power of employees.
Hourly labor cost and earnings indices increased The hourly labor cost index rose by 76.9% year-on-year, with increases of 82.0% in the industrial sector, 69.9% in the construction sector, and 75.5% in the trade-service sectors. On a quarterly basis, an increase of 9.0% was recorded.
The hourly earnings index showed a year-on-year increase of 76.6%. In the industrial sector, it increased by 81.4%, in the construction sector by 69.1%, and in the trade-service sectors by 75.5%. On a quarterly basis, the index rose by 8.4%.
These increases indicate a rise in the overall labor costs, while also reflecting that the hourly earnings of employees have increased by similar rates.
Significant rise in non-wage labor costs The hourly non-wage labor cost index increased by 78.2% year-on-year, with a rate of 85.0% in the industrial sector. In construction, the increase was 73.5%, while in the trade-service sectors, it rose by 75.4%. On a quarterly basis, this index increased by 12.0%.
According to these figures, non-wage labor costs have significantly increased in all sectors. The substantial rise in the industrial sector indicates notable changes that may necessitate a review of the cost structures of businesses.