Public Administration and Defence; Compulsory Social Security industry

Turkish Government

The Republic of Turkey is a democratic, secular and social state governed by the rule of law. The Turkish State is an indivisible whole, with its country and nation. Administration of the State and the economic and social policy of the community in Turkey is administered by the President. The executive power and duty shall be exercised and carried out by the President in accordance with the Constitution and the law.

Local Governments

The revenues of local governments (provincial administrations and municipalities) consist mainly of subsidies from the central government and own revenues. According to the Law on Tax Revenue Shares for Special Provincial Administrations and Municipalities, out of the overall national tax collection, 2.85 per cent goes to municipalities other than metropolitan ones, 2.5 per cent goes to district municipalities in metropolitan areas, 1.15 per cent goes to special provincial administrations. Moreover, metropolitan municipalities receive 5 per cent of the taxes collected in their territory as well as 30 per cent of the subsidies received by their district municipalities. The proportion of the central government’s subsidies to own revenues in a budget varies from municipality to municipality. Thus while the main parts of metropolitan municipalities’ and special provincial administrations’ overall budgets come from the central government, in many district municipalities own revenues are predominant.

Labor Force

Labor force in Turkey increased to 32.6 million in March 2019 from 21.3 million in January 2005. Employed person was 19.3 million in January 2006 and 28.1 million in March 2019. Between January 2006 and March 2019, employment by economic activities changed in structure. Share of agriculture in the total employment decreased to 18.22 per cent from  27.51 per cent  during this period while share of service sector in the total employment increased to 56.56 percent from 46.34 per cent. Share of industry and construction sectors remained similar within this period (Industry: January 2006, 20.83 per cent; March 2019, 19.48 per cent and Construction: January 2006, 5.32 per cent; March 2019, 5.73 per cent). Number of unemployed person increased to 4.5 million in March 2019 from 1.9 million in January 2006. 

Turkey's labor force makes Turkey the 3rd largest labor force market in Europe (Germany-1st and UK-2nd). However Turkey's labor force growth rate (3.2 per cent between 2005 and 2017) is the highest in Europe. Turkey’s young population is an important contributor to labor force growth and has boosted the country’s rank over its competitors. Turkey has posted the largest labor force growth in relation to EU countries.

Turkey recorded a 2.6 per cent and 1.4 per cent average increase in labor productivity which is slightly above the OECD average of 1 per cent between 2000 and 2017 and 2017 and 2019, respectively.   

The spectacular growth in the number of universities has allowed Turkey to graduate a larger number of students, which in turn has enabled Turkey to transform its young population and large labor force into a skilled workforce. 

• More than 6.7 million students are enrolled in higher education
• Approximately 800,000 students graduate from universities every year
• World-class engineering education

Unemployment rate and youth unemployment rate for Turkey between 2006 and 2018 is shown in the chart below. During this period both unemployment and youth unemployment rates recorded the lowest levels and then both rates started to increase. Worsened economic conditions,  high youth population, increase in female labor force participation, and labor force participation from agriculture contributed to high level of chronic unemployment rates.