Turkish Unemployment Rises Sharply in April 2025 as Labor Market Weakens

Turkey’s labor market deteriorated further in April 2025, as both headline and broader unemployment indicators climbed amid declining employment levels. According to a new report by TSKB Economic Research, job losses were concentrated in key sectors like industry and agriculture, while broader measures show alarming levels of underutilized labor.

Headline Jobless Rate Climbs to 10.2%

Seasonally adjusted data from TurkStat showed that Turkey’s official unemployment rate rose to 10.2% in April, up from 9.8% the previous month. The number of unemployed rose by 316,000 to 3.92 million, while the number of employed fell by 141,000 to 31.62 million. The broad unemployment rate, which includes discouraged workers and those in marginal employment, jumped from 18.5% to 19.3%.

Broad Unemployment Surges to Over 24%

TSKB emphasized a sharp rise in broadly defined unemployment, with some composite indicators pushing this figure to 24.2%, highlighting the growing strain on Turkey’s labor market. Part-time underemployment also climbed, with time-related underemployment increasing from 3.6% to 4.1%.

Job Losses Concentrated in Industry and Agriculture

The breakdown of sectoral employment trends paints a grim picture. Industrial employment dropped by 104,000, while agricultural jobs declined by 90,000. Only modest job gains were recorded in construction (+20,000) and services (+23,000).

TSKB analysts warn that the contraction in industry may become persistent if current trends continue, while agricultural job losses are attributed to seasonality and low profitability.

Youth Unemployment Hits Crisis Levels

The labor market outlook for Turkey’s youth remains particularly troubling. The broad unemployment rate among individuals aged 15–24 reached a staggering 43.3%, indicating deep structural mismatches between the education system and labor market demands.

Manufacturing PMI Confirms Employment Decline

TSKB’s report also references recent PMI data, which confirm ongoing job losses in the manufacturing sector. The impact is reportedly more severe among exporters, reflecting broader weaknesses in external demand and domestic production constraints.

Monetary Tightening Weighing on Employment

Analysts also link labor market weakness to the Central Bank of Turkey’s aggressive monetary tightening, which has suppressed domestic demand and corporate investment. TSKB notes that while this policy aims to contain inflation, it is contributing to weakening labor market dynamics, making a “soft landing” scenario increasingly difficult.

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