The report Job Creation and Local Economic Development 2024: The Geography of Generative AI examines the health of regional labour markets and provides new estimates on regional labour shortages. In addition, it provides new findings on the impact of Generative AI on different regions and workers. It examines how AI technologies can be leveraged to address critical labour market challenges and boost productivity growth.
Job Creation and Local Economic Development 2024 - Country Notes: Türkiye
(a) Employment rate for the working age population (15-64 year-olds), 2023
Note: The figure shows the regional values and the national and OECD regional average in the working-age employment rate in 2023. The employment rate is defined as the number of working-age employed persons out of the working-age population, where the working-age is defined as 15-64 year-olds.
Source: OECD calculations based on the OECD Regional databases.
In Türkiye the employment rate in 2023 varies across regions, ranging from a low of 39.8% in Southeastern Anatolia - East to 61.5% in Thrace. This represents a difference of 21.7 percentage points, above the average OECD regional dispersion of 10 percentage points. The national employment rate in Türkiye stands at 53.1%, below the OECD benchmark of 69.4%.
(a) Change in the employment rate, 2019 to 2023
Note: The figure shows the difference between 2019 and 2023 for the employment rate for regions in Türkiye, as well as the national and OECD regional average. The employment rate is defined as the number of working-age employed persons out of the working-age population, where the working-age is defined as 15-64 year-olds.
Source: OECD calculations based on the OECD Regional databases.
By 2023, over half of (23 out of 26) of Turkish regions saw their employment recover to at least pre-pandemic levels. In Southern Aegean, Mediterranean region - East, and Eastern Anatolia - West employment did not return to pre-crisis levels. Southeastern Anatolia - East experienced the greatest recovery for employment rates, surpassing the pre-pandemic level by 7.9 percentage points. Overall, employment rates are 3.4 percentage points above pre-crisis levels, a stronger recovery than the regional OECD average of 1.5 percentage points.
(a) Change in the gap in the participation rate by age (between 25-64 year-olds and 15-24 year-olds) and gender (between men and women), 2013 to 2023
Note: The figure shows regional values and the national and OECD regional average in the change in the age gap (difference between the prime-age working population (25-64 year-olds) and youth (15-24 year-olds) and the gender gap (difference between men and women) in the participation rate in 2013 and that in 2023. A negative value implies that disparities decreased. The participation rate is defined as the number of employed persons and those looking for work as a share of the population in that subgroup. For gender disparities, it is defined using the working age population of 15-64 year-olds.
Source: OECD calculations based on the OECD Regional databases.
Over the past ten years, the gap in participation rates between prime-age and younger workers (age inclusion gap) fell in 23 out of 26 regions in Türkiye, on average by 3.5 percentage points. The age inclusion gap grew by 1.3 percentage points across OECD regions. The biggest decrease in age disparities occurred in Eastern Black Sea at -15.1 percentage points, while the biggest increase was in Southeastern Anatolia - Middle by 3.3 percentage points. Over the same period, the gap in participation rates between male and female workers (gender inclusion gap) fell in 23 out of 26 regions. The gender inclusion gap fell by, on average, 4.1 percentage points. The biggest increase in gender disparities was in Eastern Anatolia - West by 7.9 percentage points, while the biggest decrease was in Eastern Anatolia - East at -13.5 percentage points.
(a) Share of youth not in employment, education or training among the youth working-age population, 2023
Note: The figure shows the regional values and the national and OECD regional average in the NEET rate (not in employment, education or training) for the youth working-age population (15-24 year-olds) in 2023.
Source: OECD calculations based on the OECD Regional databases.
In Türkiye, no (0 out of 26 regions with available data) have youth not in employment, education, or training (NEET) rates below the OECD benchmark of 16.8%, while the regional mean stands at 31%. The highest rate of youth exclusion is observed in Southeastern Anatolia - Middle at 44.2%, while the lowest rate is in Istanbul at 19.2%. This underscores the uneven opportunities for youth across the country.
(a) Labour productivity in USD 2015 PPP per worker, 2022
Note: The figure shows the regional values and the national and OECD regional average of labour productivity (USD 2015 PPP per worker) in 2022. The parentheses describe the difference in labour productivity relative to the national average. Labour productivity is defined as gross value added, measured in USD 2015 purchasing power parity, per worker.
Source: OECD calculations based on the OECD Regional databases.
(a) Ten-year annual labour productivity growth, 2012 to 2022
Note: The figure shows the regional values and the national and OECD regional average in the ten year annual growth rate of labour productivity (USD 2015 PPP per worker) from 2012 to 2022. Labour productivity is defined as gross value added, measured in USD 2015 purchasing power parity, per worker.
Source: OECD calculations based on the OECD Regional databases.
In 6 out of 26 regions in Türkiye, labour productivity is above the OECD benchmark. Istanbul leads labour productivity levels at 88% above the regional average. The lowest labour productivity is observed in Northeastern Anatolia - East at -34% below the national average. Annual labour productivity growth in Türkiye over the past ten years is at 3.1%, abovethe OECD regional average of 0.9%. The strongest labour productivity growth is observed in Southern Aegean and Western Black Sea - West at 4.7% annual growth, and the weakest in Southeastern Anatolia - Middle where labour productivity fell by 0.1% annually.
References
OECD (2024), Job Creation and Local Economic Development 2024: The Geography of Generative AI https://doi.org/10.1787/83325127-en
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Note by the Republic of Türkiye
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