Turkish Economy Begins to Feel Global Financial Crisis
More than 10,000 people lost their jobs in one month, as companies begin to cut their work forces amid the financial uncertainties of the globe. With the global slowdown in full swing, the Turkish economy began to feel the global financial crisis as growth slowed down and the dollar roses sharply. The job losses have been heavy especially in the banking, retail and construction industries ( 8000 in banking, 3000 in retail). The Turkish government, criticized for their lack of foresight in the situation, had long denied the possibility of the global crisis rippling over to Turkey’s economy and is now looking to the IMF for financial support.
Human resource firms have also reported companies implementing cost cutting measures and more conservative training approaches, such as focusing on training existing staff rather than hiring new people. Bursa, Turkey’s 4th largest city in terms of financial activity, has been hit the hardest, with 5700 employees being laid off in the last month in the textile and automotive sectors. Bursa’s production accounts for 8-9% of Turkey’s total industrial production. The severe distress felt in Bursa will most likely begin to affect other cities soon.
Adam Hazzout
