The Turkish labor market: review and outlook for 2025

The Turkish labor market is constantly evolving, influenced by economic, technological, and political dynamics. As the country seeks to enhance its attractiveness to foreign investors and support its industrial growth, employment trends and government policies play a crucial role in shaping the market. This article provides an overview of Türkiye’s labor market in 2024 and offers an analysis of prospects for 2025.

Review of the Turkish labor market in 2024

Unemployment rate and labor market participation

With a population exceeding 86 million, Türkiye has one of the largest labor markets in the region. Its economic capital, Istanbul, is home to more than 16 million residents, while other major economic hubs include Ankara, Izmir, and Bursa. Thanks to its strategic position and a young, dynamic workforce, Türkiye remains an attractive destination for both domestic and foreign investments.

Türkiye’s GDP reached $1.1 trillion in 2023 (with a growth rate of 4.5%) and is expected to rise to $1.2 trillion in 2024, making it one of the highest among OECD countries. The Turkish economy is diversified, with strong industrial, technological, and service sectors.

The Turkish lira (TRY) remains volatile, with an exchange rate of 1 USD = 37 TRY and 1 EUR = 38 TRY at the beginning of 2025. However, government efforts to stabilize inflation and attract foreign capital have strengthened investor confidence.

The minimum wage increased by 30% in 2025. As of January 1, the gross monthly salary stands at 26,005.50 TRY, while the net salary reaches 22,104.67 TRY.

According to the latest labor force data published on February 10, 2025, the unemployment rate in December 2024 was 8.5%, reflecting relative stability in the job market. The total number of employed individuals reached 32.7 million, bringing the employment rate to 49.5%. Meanwhile, the labor force stood at 35.7 million, with a labor force participation rate of 54.1%.

These figures indicate a slight improvement compared to previous years, supported by post-pandemic economic recovery and positive momentum in key strategic sectors such as manufacturing, logistics, and tourism. However, challenges remain, particularly regarding youth employment. The unemployment rate for individuals aged 15-24 remains concerning, reaching approximately 16.1% in the fourth quarter of 2024.

Key trends in the Turkish labor market in 2024

Several factors influenced the Turkish labor market in 2024:

• Increase in Foreign Direct Investment (FDI): Türkiye attracted $11.3 billion in FDI in 2024, marking a 5.6% increase compared to 2023, despite a global decline of 8% in foreign investment flows. With $2.3 billion invested, the manufacturing sector remains the primary driver of Türkiye's attractiveness, accounting for 34.5% of total FDI. It recorded a remarkable 32.5% increase compared to 2023, leading to job growth in key industries such as automotive, defense, and energy.

• Expansion of hybrid work models: approximately 55% of companies in the service sector adopted hybrid or remote work policies, particularly in IT, finance, and consulting.

• High demand for skilled labor: sectors such as artificial intelligence, cybersecurity, automation, and renewable energy experienced a talent shortage, driving up wages.

• Government employment incentives: new incentive programs boosted employment in manufacturing, logistics, and export-oriented sectors.

• Impact of migration: as Türkiye remains a key transit country for migrants, policies regarding the employment of Syrian and Afghan refugees have influenced labor availability, particularly in construction, agriculture, and textiles.



Growing sectors and employment opportunities in Türkiye

Several sectors experienced strong growth in 2024, driving job creation.

Türkiye has established itself as a crucial production hub for Europe, benefiting from its strategic geographical position and competitive production costs.

Manufacturing industry: a key driver of employment

• Automotive: the rise of electric and hybrid vehicles has boosted local production, attracting new investments from major industry players such as the Chinese automaker BYD. The expansion of TOGG, Türkiye's national automobile manufacturer, has also created numerous jobs in assembly, engineering, and related services. Additionally, the presence of specialized suppliers and subcontractors supports a robust and continuously evolving supply chain.

• Steel and metallurgy: Türkiye is a major steel producer in Europe and a key supplier for various industries, including automotive and construction. As the sector transitions to greener manufacturing processes and adopts new technologies, it continues to generate employment, particularly in metal processing, industrial maintenance, and materials engineering.

• Chemical and plastics industry: the production of chemicals, plastics, and polymers is essential to many supply chains, from automotive to food processing. The demand for experts in chemistry, materials engineering, and sustainable production is growing significantly, driven by environmental regulations pushing companies to innovate in recycling and biodegradable materials.

• Defense and aerospace industry: thanks to industrialization policies and investments in technological self-sufficiency, Türkiye's defense sector is rapidly expanding. Companies such as ASELSAN, TUSA≈û, and Roketsan are actively recruiting engineers, technicians, and specialists in cybersecurity, advanced electronics, and composite materials. This sector also benefits from strong government support, fostering the creation of highly skilled jobs.

Information Technology (IT) and digitalization: a booming sector

Digitalization has become a major competitiveness driver for Türkiye's economy, fueled by the rapid adoption of emerging technologies and incentives for innovation.

• Software development and IT engineering: the demand for developers, artificial intelligence engineers, and cloud computing specialists has surged, particularly in fast-growing tech companies and startups.

• Cybersecurity: with the rise of cyber threats, data protection and digital infrastructure security have become top priorities for businesses, leading to increased demand for cybersecurity experts and risk management analysts.

• Data analytics and artificial intelligence: the expansion of big data and AI-driven solutions has boosted demand for data analysts and data scientists, especially in the banking, industrial, and e-commerce sectors.

Tourism and hospitality: a remarkable rebound

After a slowdown caused by economic and geopolitical uncertainties, the tourism sector made a strong comeback in 2024, reaching record visitor numbers. Türkiye welcomed over 62.2 million visitors in 2024, an increase of 9.4% compared to the previous year.

• Expansion of hotel infrastructure: new hotels and resorts have been developed to accommodate the growing influx of tourists, creating a high demand for skilled professionals in hotel management and hospitality services.

• Medical and wellness tourism: Türkiye has become a leading destination for medical tourism, attracting patients worldwide for aesthetic, dental, and ophthalmological treatments. This growth has generated numerous job opportunities for healthcare professionals. According to the latest figures from the Ministry of Health, Türkiye welcomed over 2 million medical tourists in 2024, generating $10 billion in revenue.

• Cultural tourism and immersive experiences: the increasing demand for personalized experiences has fueled the development of specialized agencies and tourism activities focused on heritage and local craftsmanship.

Energy sector: a shift toward renewable energy

Türkiye's growing commitment to a sustainable energy transition has driven investments in renewable energy, particularly wind and solar power.

• Wind and solar energy: numerous solar and wind farm projects have been launched, creating job opportunities for renewable energy engineers, maintenance technicians, and energy storage experts.

• Green hydrogen: with its initial green hydrogen initiatives, Türkiye aims to position itself as a key player in this sector, which is expected to drive demand for R&D and energy engineering professionals.

• Modernization of energy infrastructure: upgrading the electricity grid and distribution infrastructure has required hiring many specialized technicians and engineers.

Challenges and issues

Despite these positive trends, the Turkish labor market faces several challenges:

• Job insecurity and informality: nearly 30% of workers still hold informal jobs without social protection.
• Poor working conditions in some sectors: wage increases do not always keep up with inflation, reducing workers' purchasing power.
• Regional disparities: employment opportunities are mainly concentrated in major cities such as Istanbul, Ankara, and Izmir, leaving some regions struggling.

Türkiye’s national employment strategy 2025-2028: objectives and key measures

The National Employment Strategy 2025-2028, presented in early February 2025 by President Recep Tayyip Erdoğan, is based on an integrated approach aimed at boosting employment, strengthening vocational training, and promoting the inclusion of women and young people in the labor market. Below are the key measures and objectives of the plan:

Employment development and job creation support

• Strengthening an economic policy focused on investment, production, and exports, creating a favorable employment environment.
• Introducing tax and financial incentives for companies hiring skilled workers.
• Increasing investments in strategic sectors such as industry, technology, and services to generate more sustainable jobs.
• Expanding support for SMEs and startups through funding and grants to encourage job creation.

Enhancing women's participation in the labor market

• Expanding the İŞ Pozitif program, which has already enabled 833,366 women to enter the workforce in a single year.
• Implementing childcare support and flexible work arrangements to facilitate women's participation in professional life.
• Encouraging female entrepreneurship by providing easier access to credit and specialized training.
• Promoting equal pay and combating workplace discrimination through regular audits and awareness campaigns.

Training and upskilling the workforce

• Strengthening the corporate training program, which benefited 65,739 workers in 2024.
• Expanding the qualified workforce training program, which has already reached 1,212 people since January 2025.
• Accelerating the workforce adaptation program, which trained 137,476 people in three months, nearly 90% of whom were women.
• Collaborating with universities and training centers to align educational programs with labor market needs.

Youth integration and employability enhancement

• Launching the İŞKUR Youth Program, designed to help university students develop skills while continuing their studies.
• Introducing mandatory internships and apprenticeships in major companies to ease entry into the job market.
• Developing specialized training programs focused on new technologies and emerging industries.
• Encouraging youth entrepreneurship through business creation incentives and mentorship programs.

Reducing unemployment and improving job quality

• Gradually reducing the unemployment rate through active employment policies.
• Supporting informal workers to transition into the formal economy through tax incentives and regularization programs.
• Expanding remote and flexible work opportunities, particularly in the digital and service sectors.
• Strengthening workers' social protection, including better working conditions and reinforced labor rights.

Monitoring and evaluating the plan's impact

• Publishing regular reports by the Turkish Statistical Institute (T√úƒ∞K) to track labor market trends.
• Establishing an employment observatory to assess the impact of reforms and adjust policies accordingly.
• Collaborating with business organizations and labor unions to ensure effective social dialogue and follow-up on commitments.