Labour market and education reforms are needed to create more and better jobs in Türkiye
The Turkish economy grew strongly over the past two decades and created many jobs.
However, given its young and growing workforce, Türkiye needs to ramp up efforts to
achieve high-quality formal job creation. A sizeable share of the workforce, mostly
female workers, does not actively participate in the labour market. While informality
has decreased significantly, it is still widespread and entrenches productivity differences
across firms. Rigid labour market rules, particularly the high severance pay but also
minimum wages, impede formal job creation. More flexible labour markets should be
part of a comprehensive reform programme that shifts job loss protection to a broader-based
unemployment insurance scheme, supported by well-designed activation policies. While
educational attainment has risen impressively, a growing number of vacancies, significant
skill mismatches and a low level of adult skills highlight the need to address the
quality of education and to improve on the matching of talent to jobs.
Published on December 12, 2023
In series:OECD Economics Department Working Papersview more titles