Turkish labour market: Outlook, key challenges, and policy recommendations

Abstract

The persistently high unemployment rate in Turkey is the result of rigidities and structural issues attributable to both supply and demand factors. Most researchers and politicians have identified this high level of unemployment rate as one of Turkey’s most important socio-economic problems. Despite the relative success of the Turkish economy in terms of macroeconomic stability and high growth performance since the 2001 crisis, a failure to show any significant improvement in the unemployment issue has increased academics’ interest in this topic. To resolve the issues in the Turkish labour market, in recent years Turkey has been looking for ways to make its labour market more flexible. This chapter examines the Turkish labour market in detail and develops some policy recommendations to ensure long-lasting improvements in it. © The Author(s) 2018.