About us | Advertising | Contact | Get Home Delivery | Archive
Mar 18, 2010 Homepage
News
Business
Interviews
Columnists
Op-Ed
Arts & Culture
Expat Zone
Features
Travel
Leisure
Life
Cartoons
Women
Health Briefs
Weird But True
Sports
Turkish Press Review
Today's think tanks
Turkey in Foreign Press

Columnists
KADIR DIKBAS k.dikbas@zaman.com.tr Columnists

Why is There no Increase in Employment?


Industrial production increased 13.2 percent between January and May this year. The increase in May was at a record level: 16.5 percent.

Today's interactive toolbox
Bookmark and Share
Video Photo Audio
Send to print Send to my friend
Post your comments
Read comments

Looking at the details, we see that growth stems from the manufacturing sector: There was an increase of 14.6 percent in the first five months of the year. The products that saw increased production the most can be listed as follows: Sneakers, minibuses, midi buses, sewing machines, washing machines, television sets, trucks, cord sheets, automobiles, ovens, videos, vacuum cleaners, buses and tin.

It was observed from the statistics announced recently that the economy grew 12.4 percent in the first three months of the year.

The figures related to production and growth are promising. It is not possible to see such a figure elsewhere in the world, except in a few countries. Examining the details, Turkey is growing with industrial manufacturing and an increase in efficiency, not with domestic debts as in the past. Moreover, it is a growth that depends on the private sector, not on the public sector. All these are good, but why does this growth not reflect on employment and thus bring down the unemployment rate?

Some circles, taking this question into consideration, claim the way things are going is not a healthy sign. Yes, there is still no noticeable increase in employment, but this does not mean that the growth is not healthy or that the figures do not reveal the facts.

We can categorize the reasons why there is no increase in employment in two groups: Firstly, it is not scientifically possible to form a relation between growth and employment all the time. We must accept the fact that Turkey is not an agrarian country. New technologies enter the business markets in the developing world every passing day. There are some sectors in which one new machine means 8-10 people becoming unemployed.

In May, when I was visiting the Isuzu facilities in Japan, the scarcity of workers and the loads of work left to machines, attracted my attention. According to what the authorities said, the number of workers has decreased from 33,000 to 18,000, but the production rate and profits surpass that of the previous year.

This is a domestic example: Many brokers who used to work and earn commissions as middlemen, became unemployed last year as the stock markets started to use the Internet. While transactions increased, the employment rate decreased.

Hence, that production has increased, whereas the employment rate has decreased, is not an odd.experience in our era. Secondly, Turkey experienced a serious economic crisis in 2001. Some workplaces were in a desperate state, they pulled down their rolling shutters, and had to lay off their workers.

Some companies on the other hand did not venture to take the risk, even though they could have overcome the hardship by keeping their workers. Their first preference was sacking the workers, instead of seeking other ways of.remedying the situation.

However, there were some companies that continued working at all costs, and considered laying off their workers as the last resort. They did not sack workers, who had served the company with great devotion, by saying 'the economic logic necessitates this.' The workers and trade unions in turn responded to this good gesture by making sacrifices.

There is one thing that should not be overlooked. The crisis taught businesses how to be efficient, even with a small number of workers. The personnel policy changed. You can still remember the trend, when employers and general managers of some holding companies used to have three to five secretaries or assistants. That came to an abrupt end with the crisis.

Now businesses that are recovering are gradually beginning to employ new staff. The businesses that did not lay off their workers, are functioning at full capacity, with the same old staff. In some businesses, the same staff work overtime day and night. No new worker is added, unless the capacity of the company so requires, or new facilities are established.

As a result, to expect the increase in employment to match the increase in production and growth rates in the economy would be an evaluation far from reality. The increase in employment will be realized with new enterprises and promising sectors. This is not something that will happen abruptly, but will come gradually. Because, we have to provide job opportunities and a means of livelihood for those who are currently unemployed, for those who will be unemployed in the future due to the emergence of new advanced technologies, and for the young labor force, that will also join them, as a result of the population growth...

July 13, 2004

16 July 2004, Friday
KADIR DIKBAS
   
Articles of Today
Turkey and the SIPRI report
LALE KEMAL
Five questions for Mr. Başbuğ
HÜSEYİN GÜLERCE
Constructive ambiguity and destructive obscurity
KERİM BALCI
Will Turkey ever walk alone?
ANDREW FINKEL
Islam, democracy and Turkey
İBRAHİM KALIN
Wanted: democratic opposition in Turkey
MUHAMMED ÇETİN
Spring fever
PAT YALE
A direct intervention in the judiciary
FATMA DİŞLİ ZIBAK

Other Articles of the Columnist

  Why is There no Increase in Employment?
  Overflowing Growth and Bulgaria
  Are the Debts Increasing or Decreasing?
  Turkish-Japanese Friendship
  [News Impression] New Investment Signal from Isuzu
  [NEWS IMPRESSION] Amway Turkey Becomes a Model for Europe
  Turkey is Beating Inflation
  Innovation Needed in Turkey
  Koc: Lets Continue with International Monetary Fund
  This is Not Just an Ordinary Record!
  Moscow to Have an Akmerkez
  French Cement Giant La Farge Discovers Turkish Managers
  Trade with Greece
  2 Turkish Engineers in Brain Team of Grundfos
  Bank BCP of Portugal: We Believe In Turkey's Potential and Future
  We Have Started to Pay the Price for Iraq Already
Columnists
ABDULHAMİT BİLİCİ
ABDULLAH BOZKURT
ALİ BULAÇ
ALİ H. ASLAN
AMANDA PAUL
ANDREW FINKEL
ASIM ERDİLEK
AYŞE KARABAT
BEJAN MATUR
BERİL DEDEOĞLU
BERK ÇEKTİR
BÜLENT KENEŞ
BÜLENT KORUCU
CHARLOTTE MCPHERSON
DOĞU ERGİL
EKREM DUMANLI
EMRE USLU
ETYEN MAHÇUPYAN
FATMA DİŞLİ ZIBAK
FİKRET ERTAN
GÜRKAN ZENGİN
HASAN KANBOLAT
HÜSEYİN GÜLERCE
İBRAHİM KALIN
İBRAHİM ÖZTÜRK
İHSAN DAĞI
İHSAN YILMAZ
KATHY HAMILTON
KERİM BALCI
KLAUS JURGENS
LALE KEMAL
MEHMET KAMIŞ
MICHAEL KUSER
MUHAMMED ÇETİN
MÜMTAZER TÜRKÖNE
NICOLE POPE
ÖMER TAŞPINAR
ORHAN KEMAL CENGİZ
PAT YALE
ŞAHİN ALPAY
SELÇUK GÜLTAŞLI
SUAT KINIKLIOĞLU
YAVUZ BAYDAR