Falling unemployment, but discouraged workers still number 2.5M: Where’s the mistake?

The number of discouraged unemployment in Türkiye surged by 14% in the last quarter of 2024 —from October to December— reaching 2.48 million, while the unemployment rate dropped to 8.6%, the Turkish Statistical Institute (TurkStat) reported Thursday.

The term “discouraged workers” is used by TurkStat to define unemployed individuals who are “available to start work but are not seeking employment because they do not believe they will find a job.”

According to TurkStat, the seasonally adjusted unemployment rate, which only includes individuals aged 15 and older who are actively looking for work, dropped slightly by 0.1 percentage points to 8.6%, accounting for 3.08 million people.

The unemployment rate decreased by 0.2 percentage points compared to the same period in 2023. The rate stood at 6.9% for men and 11.8% for women.

Meanwhile, the employment rate rose by 0.2 percentage points to 49.6%, with the number of employed individuals increasing by 141,000 from the previous quarter, reaching 32.76 million.

Commenting on the figures, Labor and Social Security Minister Vedat Isikhan stated that the programs implemented by considering the current needs of labor markets have positively reflected on employment data. “On a quarterly basis, we have reached a historic peak in employment and labor force participation rates,” he said.

21M women not participating in labor force

On the other hand, the total number of people not in the labor force climbed to 30.38 million during the period.

Women made up the majority of this group, with 21.08 million not participating in the workforce. Among them, 6.65 million cited household responsibilities as the primary barrier to employment, while 4.76 million pointed to disabilities.

The highest increase in non-participation was recorded among men, with a rise of 388,000, bringing the total to 9.29 million. Men also led the increase in discouragement about finding a job, with a surge of 167,000, pushing the figure to 1.12 million. Retirement, education, and disabilities followed as the primary reasons for not being in the labor force.

‘Employers struggle to find skilled workers’

Speaking to Türkiye Today on the matter, Erman Kavlak, vice chairman of the Association for Professional Collaboration in Human Resources (IKAMID), highlighted the surge in job opportunities across all sectors, driven primarily by government employment incentives.

However, despite this growth, employers continue to face significant challenges in finding candidates with the necessary skills and competencies.

Kavlak identified two key factors contributing to this issue. First, many job seekers remain passive in developing their skills, exhibiting low motivation and a lack of commitment to professional growth. As a result, they struggle to meet the evolving demands of the job market.

Second, while companies allocate substantial budgets to human resources services, HR departments often lack the technical expertise required for thorough job assessments. This results in inefficient hiring processes, with inadequate evaluation criteria and unproductive interviews.

He also pointed to a broader decline in workplace motivation, noting that many employees now view work merely as a necessity rather than a source of fulfillment. This shift, exacerbated by the economic downturn following the pandemic, has further complicated recruitment efforts, Kavlak said.

Remote work opens doors for discouraged workers, housewives

On the other hand, he highlighted that recent remote work opportunities introduced by the government could help address labor shortages by enabling discouraged workers and women with household responsibilities to join the workforce.

By supporting professional development and career advancement, such initiatives could play a crucial role in improving employment prospects, Kavlak noted.

In January, the Turkish government launched a remote working program aimed at providing part-time job opportunities for housewives and university students. The program, which runs for 10 months, offers monthly salaries of up to ₺15,000 ($413.19).

Kavlak also emphasized the importance of foreign investment in boosting employment. However, he cautioned that challenges in the labor market are likely to persist, particularly as Türkiye’s ongoing monetary tightening continues to hinder job growth.

“To sustain stable employment, we must first enhance the attractiveness of the market for foreign investors by improving access to financing. Additionally, raising awareness about career development among Turkish workers is essential,” he concluded.