Due to investment expenditures and exports as well as the rapidly increasing industrial production since the second quarter of 2020, the number of people employed rose by 2.7 million (1.3 million being in the services sector and more than 900,000 in the industrial sector) as of the first quarter of 2022. In addition, employment has increased by approximately 846,000 people since the beginning of the year. This increase in employment is significantly larger than that of peer countries. Considering the population and the sources of employment growth in these countries, our employment performance becomes even more remarkable. Employment in the manufacturing industry in particular, exhibits a notably strong performance. In the pandemic period, many countries have not managed to compensate for the losses in labor force participation. On the other hand, both the labor force participation and employment indicators in our country have exceeded their pre-pandemic levels, showing how brisk and robust the labor markets were in the normalization process. Distinguished Members of the Chamber of Industry, The Turkish economy is going through a process of structural transformation centered on increasing investments, employment, production and exports, the focus of which is you. Adjusted for cyclical effects, the Turkish economy had a current account surplus for three consecutive quarters for the first time since this analysis began in 2004.
In this context, it is important that the investment need required for the continuation of the supply-side contribution to sustainable growth and price stability is met with accessible, long-term and low-cost Turkish lira financing. Machinery-equipment investments and net exports are the pillars supporting the economic performance of Türkiye centered on increasing investments, employment, production and exports, and their share in national income has been rising consistently. Their total share in national income reached the highest historical level at 18% as of the first quarter of 2022. The stable increase of machinery-equipment investments will enhance the supply capacity of our economy, thereby contributing to permanent price stability. The latest data indicate that industrial production remained on a favorable track in the second quarter of the year with the help of sustainable components. Industrial production has grown on an annual basis without interruption since the third quarter of 2020 and recorded an upsurge of 9.1% in May 2022. While this increase in production spreads across the manufacturing industry, industrial production in exporting sectors remains even stronger. Industrial turnover indices also indicate that external demand has a positive impact on industrial production. Strong economic growth is also apparent in capacity utilization rates. While capacity utilization rates increased in all sectors, in some sub-sectors they even exceeded historical averages. This points to a need for additional capacity, and supports the investment demand.