Turkey’s Hidden Job Crisis: Broad Unemployment Nears 30% in August

Turkey’s labor market showed renewed strain in August 2025, with the official unemployment rate rising to 8.5%, up 0.4 points from the previous month, according to the Turkish Statistical Institute (TÜİK). The number of unemployed climbed by 168,000, reaching 3.04 million people, while broader indicators reveal even deeper cracks in employment stability.

Women Face Double-Digit Unemployment

The gender gap in employment remains stark. While the unemployment rate among men was measured at 6.8%, women recorded a significantly higher figure at 11.6%. Despite a slight increase in the employment rate overall—up 0.3 points to 49.4%—the distribution shows sharp divides: 66.6% for men compared to only 32.6% for women.

Youth Unemployment at 16%

The situation is particularly challenging for young people. In the 15–24 age group, unemployment surged by 0.8 points to 16%. Within this group, the contrast between genders is even more striking: 12.4% for young men versus a troubling 22.7% for young women. These figures highlight the structural barriers young women face in accessing the labor market, making them disproportionately vulnerable in times of economic slowdown.

Labor Force Participation Expands, But So Does Joblessness

Interestingly, more people are entering the labor market despite the difficult conditions. The labor force participation rate rose by 0.6 points to 54%, adding 376,000 people for a total of 35.87 million. Male participation stands at 71.5%, while female participation lags at just 36.9%. The paradox of rising participation alongside rising unemployment indicates that while more people are actively seeking work, the economy is not generating jobs fast enough to absorb them.

Broadly Defined Unemployment Nears 30%

Perhaps the most striking figure is the broad unemployment rate, or atıl işgücü oranı, which includes the unemployed, underemployed, and discouraged workers. This rate climbed to 29.7% in August, underscoring how traditional unemployment figures fail to capture the full scale of labor underutilization. Breaking it down further, the combined rate of underemployment and unemployment reached 19.3%, while the combination of jobless and potential labor stood at 20.2%.

Work Hours Decline

For those still employed, working conditions are also shifting. The average weekly actual working time fell by 0.7 hours compared to the previous month, settling at 41.8 hours. While a slight dip may not seem significant, it signals reduced activity or shorter shifts across sectors, reflecting underlying weakness in demand.

A Labor Market Under Pressure

The August 2025 data paints a picture of a labor market under mounting pressure: more people are looking for work, but opportunities are not expanding at the same pace. Women and young people remain the most vulnerable groups, facing unemployment rates well above the national average. The nearly 30% broad unemployment rate underscores the scale of hidden joblessness and underemployment in Turkey, suggesting that official figures only scratch the surface of the crisis.

Unless structural reforms generate sustainable job creation, Turkey risks an entrenched employment problem where participation continues to rise but meaningful work remains elusive. For many households, the struggle is no longer just about finding a job—it’s about finding one that offers stability, sufficient hours, and fair wages.