The Turkish Statistical Institute (TurkStat) announced on Thursday that Türkiye’s unemployment rate dropped to 8.7% in 2024, marking a significant decline of 0.7 percentage points from the previous year.

This reduction reflects a decrease of 151,000 unemployed individuals aged 15 and over, bringing the total to 3.113 million. The unemployment rate for men was recorded at 7.1%, while for women it stood at 11.8%, highlighting a persistent gender gap in joblessness.

In a positive development, the employment rate rose to 49.5%, up 1.2 percentage points from 2023, with the number of employed persons increasing by 988,000 to 32.62 million. Men saw an employment rate of 66.9%, far surpassing the 32.5% recorded for women. Meanwhile, the labor force participation rate climbed to 54.2%, a 0.9-point increase, driven by an additional 837,000 individuals joining the labor force, totaling 35.733 million. Participation rates were notably higher for men at 72.0% compared to 36.8% for women.

Youth unemployment, affecting those aged 15-24, also saw improvement, falling by 1.1 points to 16.3%. However, disparities persisted, with young men at 13.1% and young women facing a much higher rate of 22.3%.

The services sector dominated employment in 2024, accounting for 57.9% of total jobs, a slight increase of 0.3 points. Agriculture held steady at 14.8%, while industry dropped by 0.5 points to 20.7%, and construction edged up by 0.3 points to 6.6%. In absolute terms, services added 656,000 jobs, construction gained 165,000, agriculture rose by 132,000, and industry saw a modest increase of 35,000 employed persons.

Despite these gains, labor underutilization remains a concern. The composite measure of labor underutilization, which includes time-related underemployment, potential labor force, and unemployment, surged by 3.9 points to 26.7%. The combined rate of time-related underemployment and unemployment reached 18.1%, while the rate combining unemployment and potential labor force hit 18.4%.

Regionally, unemployment rates varied widely. Burdur and Kastamonu tied for the lowest at 4.0%, while Hakkari recorded the highest at 18.3%. Ardahan led in employment and labor force participation, boasting rates of 60.6% and 63.9%, respectively. Conversely, Hakkari had the lowest employment rate at 35.3%, and Siirt trailed in labor force participation at 41.6%.

The TurkStat data underscores a year of mixed progress for Türkiye’s labor market, with notable improvements in employment and unemployment tempered by rising underutilization and regional disparities. As the economy continues to evolve, these figures highlight both the strides made and the challenges that remain. (ILKHA)