VKF_FRAE_2017

PART I: INTRODUCTION 38 VakıfBank Annual Report 2017 The rate of unemployment climbed sharply in the first months of 2017, before starting to fall due to policy makers’ measures to boost employment, and to vibrant economic activity. THE WORLD AND TURKEY IN 2017 The unemployment rate, which stood at 10.7% in the first 11 months of 2016, reached 11% in the first 11 months of 2017. »» THE UNEMPLOYMENT RATE MATERIALIZED AS 11% IN THE FIRST 11 MONTHS OF 2017. The unemployment rate, which stood at 10.7% in the first 11 months of 2016, reached 11% in the first 11 months of 2017. A factor underlying this increase was the rather high unemployment rates of the first months of the year. In January, the figure rose to 13%, and then started to drop due to job creating measures introduced by policy makers in the following months. The unemployment rate declined to 10.3% in November. Seasonally adjusted unemployment rate, which stood at 10.8% in January-November 2016, rose to 11% in the same period of 2017. It is expected that the unemployment rate will fall in 2018, since unemployment has begun to fall after reaching a peak in the first months of 2017, and due to the ongoing strength in economic activity and job creation measures implemented by policy makers. UNEMPLOYMENT RATE (%) Source: TSI 8 42 9 44 10 46 11 48 12 50 13 52 14 54 Nov. 05 Nov. 06 Nov. 07 Nov. 08 Nov. 09 Nov. 10 Nov. 11 Nov. 12 Nov. 13 Nov. 14 Nov. 15 Nov. 16 Nov. 17 Unemployment Rate (Seasonal Adjusted, %) Labor Force Participation Rate (Seasonal Adjusted, %, right axis)