Turkish job market mirrors patterns in developed nations
ISTANBUL
Türkiye’s labor market is undergoing a structural transformation, with employment patterns increasingly resembling those of high-income countries, according to a recent analysis by the Central Bank.
The report reveals that the share of employment in the industrial sector has declined, while the services sector continues to expand — mirroring global trends observed in advanced economies.
Covering the one-year period ending in May 2025, the report highlights a gradual decline in industrial employment, driven largely by productivity gains and global competition.
At the same time, employment in the services sector has grown steadily, consistent with patterns seen in developed nations.
Between May 2024 and May 2025, total paid employment in Türkiye increased by 1.2 percent, though this growth was uneven across sectors.
The industrial sector lost approximately 157,000 jobs, a 3.1 percent decrease, while the construction sector gained 83,000 jobs, and the services sector added 258,000 positions — a 2.9 percent rise.
The bank research attributes this shift to technological advancements, evolving consumer preferences and the relocation of manufacturing activities abroad.
Although Türkiye’s industrial employment share remains about 5 percentage points higher than the OECD average, it is expected to decline further as the economy continues to mature.
The report also examines job transitions using data from the Social Security Institution (SGK).
Of the 835,000 individuals who left their jobs in May 2024, 67 percent were reemployed within a year, demonstrating strong labor market dynamism.
In the manufacturing sector, 68 percent of displaced workers found new jobs, with nearly half transitioning to the services sector.
This flexibility is seen as vital for adapting to structural changes and minimizing unemployment risks, according to the report.
Notably, the 2024 reemployment rate is the highest recorded since 2018, excluding the post-pandemic recovery in 2020, it said.
The analysis concluded that Türkiye’s employment distribution is steadily converging with that of high-income countries.
“We expect that this shift to continue on the back of sustained economic development over the medium and long term, leading Türkiye’s employment distribution to converge with that of high-income countries,” the report concluded.
