Türkiye faces skilled labor shortage amid rising wages

Türkiye is facing a significant shortage of skilled workers across various sectors, including manufacturing, construction, agriculture, and tourism. Despite competitive wages, industries are struggling to fill key positions. To address these shortages, many industry leaders are exploring new strategies, such as recruiting foreign labor with government support and providing housing as an incentive.

With labor scarcity reaching critical levels, wages in key sectors have surged:

• Construction: Heavy machinery operators now earn over ₺120,000 per month (approximately $3,500), while experienced plasterers and ironworkers can command up to ₺80,000 (approximately $2,300).
• Agriculture: Daily wages for seasonal laborers have reached ₺2,000–₺3,000 (approximately $58–$87), and shepherds earn between ₺40,000 and ₺60,000 (approximately $1,165–$1,740) per month.
• Tourism and hospitality: Skilled chefs have starting salaries of ₺50,000 (approximately $1,460), while hotel staff typically earn around ₺25,000 (approximately $725) per month.

Industry response

• Housing and foreign labor: To address the growing labor gap, many agricultural and livestock operations are hiring foreign workers, particularly from Afghanistan and Syria. Employers are constructing housing in rural areas and providing on-site accommodations to attract these workers.
• Manufacturer’s labor import initiatives: Manufacturers are increasingly looking to foreign recruitment to meet workforce demands. Some factories have begun hiring skilled laborers from abroad and are providing housing near work sites to enhance the attractiveness of these positions.
• Construction costs surpass labor costs: In the construction industry, labor costs have risen at a rate exceeding that of materials. Since early 2023, skilled labor wages have increased by 114%, while material costs have risen by 77%. This trend highlights the urgent need for trained workers from abroad.

Shift in local workforce preferences

Despite the high wages, blue-collar roles in sectors such as construction and agriculture are increasingly viewed as undesirable by local youth, who often prefer office jobs. This shift has created a significant gap in the supply of workers willing to engage in labor-intensive industries, contributing to ongoing labor shortages.

Dependence on foreign workers in agriculture and livestock

The agriculture sector now heavily relies on foreign workers to sustain operations. Many employers offer alternative compensation structures, such as a percentage of produce, in addition to standard wages.

Tourism sector’s expanding workforce needs

As Türkiye’s tourism industry grows, the demand for skilled workers is projected to increase. The industry, which currently employs 1.7 million people, will need approximately 100,000 additional workers to meet visitor targets in the coming years. Several countries have adopted policies to facilitate greater foreign labor participation in hospitality; implementing similar policies in Türkiye could help alleviate hiring pressures.

Bottom line

Türkiye’s skilled labor shortage is becoming a pressing issue, prompting employers to seek innovative solutions to attract and retain workers. A combination of targeted policies, revised public perceptions regarding manual labor, and foreign recruitment initiatives may help address both current workforce demands and anticipated future needs.