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Türkiye’s Unemployment Rate Falls to 7.9% as Youth Joblessness Remains High

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The Turkish Statistical Institute (TÜİK) has published the March 2025 labor force data, revealing a mixed picture for Türkiye’s employment landscape. The seasonally adjusted unemployment rate dropped to 7.9%, while the broader underutilized labor force ratio rose sharply to 28.8%.

The underutilized labor rate includes not only the unemployed but also those who are underemployed or willing to work but not actively seeking jobs, highlighting persistent challenges in the labor market.

Unemployment Declines, but Underemployment Surges

According to TÜİK, the number of unemployed people fell by 65,000 compared to the previous month, reaching 2.807 million. Meanwhile, employment rose significantly, with an additional 391,000 people joining the workforce, bringing the total number of employed individuals to 32.597 million.

Despite these gains, the labor force participation rate remained relatively low at 53.4%, and notably lower among women at 35.7%. The female unemployment rate was recorded at 10.6%, underlining ongoing gender disparities in Türkiye’s labor market.

The average weekly working hours also edged up, reaching 43.7 hours in March.

Youth Unemployment Remains a Critical Issue

Youth unemployment continues to be a significant concern. Among the 15–24 age group, the unemployment rate climbed by 0.1 percentage points to 15.1% in March. The situation is more alarming for young women, whose unemployment rate surged to 22.6%, compared to 11% among young men.

Economists warn that persistently high youth unemployment could hamper Türkiye’s long-term economic growth, as it risks undermining the country’s human capital development and future productivity.

Employment Expands but Challenges Persist

March’s data showed an encouraging rise in employment levels, with the employment rate increasing by 0.6 percentage points to 49.2%. However, experts caution that the jump in the underutilized labor force and youth joblessness signals deeper structural issues that need to be addressed for sustainable economic progress.

With working hours increasing and employment expanding, Türkiye’s labor market shows signs of resilience, but tackling youth unemployment and female labor force participation remains essential for broader recovery and inclusive growth.

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