Turkey has achieved impressive growth since 2001, supported by wide-ranging reforms that have lowered inflation, improved public spending, and raised exports and foreign direct investment. But job creation has been relatively slow, and could limit the distribution of the benefits from growth and undermine support for continued reforms.Between 1980 and 2004 Turkey’s working-age population grew by 23 million people, yet during that time only 6 million jobs were created . As a result the country’s employment rate is just 44 percent, among the lowest levels in the world. Most countries have employment rates above 50 percent, and in the EU-15 the average is 65 percent .
In addition to that, Turkey’s large informal economy means that one in three urban workers and three in four rural workers are not registered with social security institutions. As a result few workers receive pensions, health insurance, and unemployment insurance, however fewer get the full severance pay and other protections stipulated in employment legislation because even among the workers registered with one of the social security institutions, full compliance with labor regulations is relatively low. Change is needed to narrow the jobs deficit and strengthen worker protection. Also turkey has a big problem about women and young people so ı investigated about it :
Female labor force participation has been falling in Turkey since the 1960s, stagnating under 20 percent over the past 15 years. Slow job creation is part of the problem. Between 1988 and 2003 unemployment for urban men was about 11 percent, yet for urban women it fell from 28 percent to 18 percent. Many women, discouraged by limited opportunities, have dropped out of the labor force. Education plays a crucial role in encouraging female labor force participation: university-educated young women have participation rates close to those of men.
Although the availability of part-time work has significantly increased female labor force participation in other OECD countries, that has not happened in Turkey. Only about 9 percent of female wage and salary earners work fewer than 35 hours a week. Employers and workers are not taking full advantage of changes introduced by the 2003 Labor Law that allow more part-time work. The new law also lifted a ban on female employment in night shifts at manufacturing fi rms.
Slow job creation has also hurt young people. Employment in manufacturing for those ages 15-24 fell between 1997 and 2003, from about 1.1 million to 900,000. Since 2000 employment in services for this age group has also fallen. Workers in entry-level jobs have felt the greatest impact—which is consistent with international literature suggesting that strong employment protection legislation, such as Turkey’s, is most likely to affect the young. The impact of labor laws on female labor force participation should be closely monitored, including recent provisions extending maternity leave and requiring childcare facilities in large firms.Also so important Turkish social system we talked about general in the class so ı wanna talkin about it in my country:
is based on a combination of institutions, where the institutions differ as per the professions of the employees under which the health and retirement insurances are combined under each institution. Their employers are used in financing the pensioners (who in the past paid similar premiums) and their dependents. The latest piece of legislation to reform the social security system was approved back in the 2003 summer with the establishment of the “Social Security Institution Administration ” under the management of the Ministry of Labor and Social Security . Starting by 2006, social security system in Turkey operates under the roof of a single institution called SSI. The SSI is responsible for setting the social security policy in Turkey and for taking the necessary measures and their applications; apart from maintaining the coordination between the social security institutions.
The social security system in Turkey, especially in terms of insurance for ailment and death, covers the insured and the dependents both during the lifespan of the insured and after his/her death. In more detail, the social security institutions in Turkey cover the insured’s spouse, the male children under 18 years of age (with the age limit escalating to 25 if the male children
are going to a university), without an age limit the unmarried daughters who are under no other social coverage, and without an age limit to any children born with permanent incapacities, and finally the parents of the insured whose living is supplied by the insured.