Turkey’s Jobs Market Turns Upside Down

TÜİK data reveals decline in industrial jobs but robust gains in construction and services

Turkey’s labor market continued to expand in July 2025, with the total number of paid employees across industry, construction, and trade-services sectors rising 1.2% year-on-year, according to figures released by the Turkish Statistical Institute (TÜİK).

The number of paid employees increased from 15.91 million in July 2024 to 16.10 million in July 2025, highlighting the resilience of the job market despite ongoing economic headwinds.

Sectoral Breakdown: Uneven Growth

• Industry: Paid employment fell 3.5% year-on-year, underlining persistent challenges in manufacturing and export-driven industries.

• Construction: Jobs surged 7.7% annually, reflecting government-backed infrastructure projects and private sector housing demand.

• Trade & Services: Employment rose 2.5% year-on-year, showing steady growth in retail, logistics, tourism, and professional services.

This divergence suggests Turkey’s economy is shifting toward domestic consumption and infrastructure-driven employment, while industrial sectors struggle with export markets, energy costs, and global uncertainty.

Monthly Change: Slight Uptick

Compared to June 2025, overall paid employment grew 0.3% month-on-month.

• Industry: Down 0.1%, extending its decline.

• Construction: Up 0.9%, continuing its upward trend.

• Trade & Services: Up 0.3%, consistent with gradual sectoral expansion.

Broader Implications

The figures indicate:

• Industrial weakness could signal risks for Turkey’s long-term productivity and export competitiveness.

• Construction’s sharp rebound may be unsustainable if driven by temporary stimulus and not long-term demand.

• Services-led growth reflects rising urban consumption but also raises concerns about job quality and wage sustainability.

With inflation and interest rates still high, labor market adjustments across sectors will be crucial for Turkey’s economic rebalancing in the coming months.