. source : turkstat, cbrt. 17. the transformation that the turkish economy has undergone in the post - 2001 period has caused major changes in the employment structure. the share of the agricultural sector in employment was 35 percent in 2002, while, this ratio fell to around 23 percent in 2007. however, with the recent economic slowdown, this trend reversed temporarily and the share of agricultural sector in employment increased to approximately 25 percent in 2009. 18. while global turmoil took a heavy toll on industrial employment, it had a scant impact on employment in construction and services sectors. in 2009, industrial employment contracted by 7 percent, whereas, employment in the construction sector and services sector increased by 0. 6 percent and 1. 4 percent, respectively. employment by sectors ( percent ) farm no n - farm source : turkstat. 19. demographic changes in turkey leads to an increase in the share of the working population in the overall population and this, in turn, results in the unemployment to persist. however, the recent upsurge in the unemployment rate is mainly attributable to cyclical rather than structural factors. the economic contraction in 2009 increased the labor force participation rate while significantly curbing the pace of employment growth ; hence the unemployment rate increased rapidly. 20. the labor force is comprised of 23, 8 million people in 2008 and rose to 24. 7 million people in 2009 by an increase of 4 percentage points, whereas, employment increased by a mere 0. 4 percent, from 21. 2 million to 21. 3 million people. in this period, the rapid increase in labor force participation while employment remained much the same, caused the unemployment rate to climb to 14 percent in 2009 from 11 percent in 2008. meanwhile, the non - farm unemployment rate increased from 13. 6 percent to 17. 4 percent. 21. as i mentioned in my previous presentations, creating new employment opportunities for the growing labor supply in turkey is contingent upon carrying out cost - reducing and resilience - enhancing reforms in labor markets. these reforms, by promoting registered employment, will also help us overcome problems in our social security system. unemployment rates ( percent ) unemployment rat e non - farm unemployment rate source : turkstat, cbrt. distinguished guests, 22. the impact of the global economic crisis on turkey ’ s foreign trade has been evident, and the contraction in domestic and foreign demand and the slumps in commodity prices, especially in crude oil as well as iron and steel led imports and exports to shrink

' additional plans for revising capital rules, specifically plans for those banks not subject to the advanced approaches of basel ii. some commentators on the earlier basel ii and basel ia proposals voiced concerns that adoption of a new capital framework for the largest and most complex u. s. banking organizations could disadvantage other u. s. banking organizations, particularly the smaller banks. we understand that banks not required to adopt basel ii are facing a choice about whether to opt - in to the advanced approaches. some of these banks may be sophisticated institutions that exhibit sound risk management but do not quite meet the criteria to be core banks. the agencies recognize that such institutions should be afforded an alternative for more - risk - sensitive capital requirements, but one that is not as complex as the advanced approaches. in this regard, the agencies have responded by committing to proposing a " standardized " approach instead of basel ia. specifically, the staffs are currently working on a notice of proposed rulemaking that would implement some of the simpler approaches for both credit risk and operational risk from the basel ii framework – referred to as the standardized approach. the proposal is being developed as an optional risk - based capital framework for all banking organizations that are not required to adopt the advanced approaches. we also expect to retain our existing basel i - based regulatory capital framework for those smaller banks that would prefer to remain under that regime. the proposal for the standardized approach will take into consideration relevant commentary received in response to the basel ia and basel ii proposed rules that were published in late 2006 and should, in essence, modernize the basel i - based rules without imposing a substantial implementation burden. among other things, the proposal is being designed both to provide greater differentiation across corporate exposures based on borrowers'underlying credit quality and to recognize a broader spectrum of credit - risk mitigation techniques. the agencies are also considering how to implement pillars 2 and 3 of the basel ii framework in the standardized proposal in a manner that is commensurate with banks'complexity and risk profiles. our goal is to realize the benefits of these two pillars without imposing excessive regulatory burden and without creating competitive advantages or disadvantages for different types of banks. i expect this proposal to be presented to the board for consideration within the next several months, and i encourage all interested parties to review and comment on this proposal once it has been issued. we are keenly aware of the need for capital requirements to make sense from the standpoint of both safety - and - soundness and competitiveness ; we