Publication: Turkey : Managing Labor Markets through the Economic Cycle
Date
2013-03-15
ISSN
Published
2013-03-15
Author(s)
World Bank
Ministry of Development, Republic of Turkey
Abstract
The Turkish economy was hit hard by the
global economic crisis, but recovered fast and strong. The
economy had already started to slow down in 2007, but the
global financial events of late 2008 led to a sharp
contraction starting in the last quarter of 2008 until
growth resumed in the last quarter of 2009. The recovery was
rapid, with growth reaching 9 percent in 2010 and 8.5
percent in 2011. This study looks at how the labor market
fared during the recent downturn and recovery and informs
policies to manage labor markets through the economic cycle
and address the jobs challenge in Turkey. The study
investigates: 1) pre-crisis labor market trends and the
structural jobs challenge in Turkey; 2) aggregate and
distributional impacts of the recent crisis, and subsequent
recovery, on the labor market; and 3) recent policy measures
and existing labor market institutions in the context of
observed labor market outcomes. Finally, the study links
policies to manage labor markets through the cycle with
measures to address the longer term, structural jobs
challenge in Turkey. Ongoing structural transformations and
the large 'stock' of low-skilled workers are
behind the jobs challenge in Turkey. Continued urbanization
and labor shedding in agriculture, along with the increase
in the Working Age Population (WAP), will continue to
increase the number of (mostly) young and low-skilled
workers looking for non-agricultural jobs. The Turkish
Employment Agency (ISKUR) plays a key role in activating
low-skilled workers into productive employment. ISKUR has
come a long way since 2008, increasing the coverage and
quality of vocational training, introducing job and
vocational counselors and linking social assistance receipts
to registration in ISKUR.
Citation
“World Bank; Ministry of Development, Republic of Turkey. 2013. Turkey : Managing Labor Markets through the Economic Cycle. © World Bank, Washington, DC. http://hdl.handle.net/10986/15965 License: CC BY 3.0 IGO.”