A World Bank report on Türkiye's labor market found that economic growth since 2001 has not translated into adequate job creation. Between 1980 and 2004, the working-age population expanded by 23 million people, yet only 6 million jobs were added. The result is an employment rate of just 44 percent, one of the lowest in the world and well below the EU-15 average of 65 percent.
Low female workforce participation is a major driver of the gap with European rates, and unemployment among educated young people is especially acute, reaching 39 percent for university graduates aged 20 to 24. The World Bank estimated Türkiye would need to generate 14 million jobs by 2010 to meet EU Lisbon targets, but current growth trends suggest only about 1.5 million will be created.
Informal employment is another serious concern. One in three urban workers and three in four rural workers are unregistered with social security, leaving them without standard protections such as pensions and full severance pay. High payroll taxes and a rapidly rising minimum wage were identified as factors pushing employment into the informal sector.
The report urged authorities to ease eligibility rules for unemployment insurance, expand collective bargaining access, and provide the Turkish Employment Organization with greater resources for active labor market programs.
Historical summary. TurkishPress restated this wire report, first published in April 2006, in its own words.