Understanding Unemployment in Turkey and Alternatives
Achieving the goal of rapid and stable growth for a developing country depends on how its resources are being used. GDP is a function of resource use and year-year GDP growth can be achieved only by the participation of the larger part of the resources, more efficiently.
According to the Turkish statistical institute (TÜİK) unemployment rate reached the highest level in the last thirty years in Turkey in 2019. One of the reasons being that many companies focus on quality of but at lower cost, primarily due to pressure from foreign companies, who are always looking for cost-effective alternatives. According to data from the International Labor Organization, average overtime in Turkey (more than 48 hours per week) is 30%, compared to 15% of world average. As this is the case, neither the employees can get as much productivity as required, and therefore companies cannot grow nor can the employment increase sufficiently. Due to some strict regulations on the labor market and the tax burden on employment, companies are reluctant to recruit, as employing people sometimes becomes too costly. In addition, young skilled population is increasing in the country, while job opportunities are not increasing at the same pace.
Unemployment is the biggest problem of all developed or developing countries regardless of the structure of the economy. It is accepted that unemployment is not only as important as its economic dimension but also its social dimension as well. In European Union, even there is unemployment problem in Spain and Greece, the rates has declined compared to Turkey where unemployment rate rise. Prof. Kozanoğlu stated that the unemployment targets in the New Economic Program could not be met. Because of high population growth, capital accumulation, failure to increase sufficiently the public and private sector investment, foreign capital deficiency, not complying with modern industrial needs of the labor quality, incompatibility between education and the labor market and some technological cahanges the size of unemployment problem is increasing. Therefore, when graduates glare at future uncertainity, it is natural to explore other opportunities and in the modern globalized world, skilled human resources should be used efficiently as natural resources for mankind to progress.