Türkiye at the Frontier: Human Capital Utilization, Jobs and Equity - Technical Diagnostic

Türkiye’s early human capital foundations have paved the way for poverty reduction and labor force participation, today facing new multi-dimensional challenges. Türkiye’s investments have historically helped diversify and increase aggregate growth, propelling it to upper middle-income status. Yet relative to overall growth more recently, human capital utilization in terms of jobs has not necessarily kept pace. Over half the population remains either out of the labor force or employed in informal, relatively low-paying jobs, most of whom have been women. Economic vulnerabilities remain following the Coronavirus pandemic (COVID) and the 2023 earthquakes in southeastern Türkiye, compounded by long-term effects of global financial crises and regional conflicts since 2008. Helping vulnerable workers, largely comprising women, adapt to a changing labor market will be needed to sustain a broad, productive workforce for future broad-based growth. As Türkiye embarks on its forthcoming Twelfth Five-Year National Development Plan, a diagnostic of human capital and jobs programs and policies in terms of gender equity is timely for informing future needs. In addition, a review of Türkiye’s experience will equally help provide global knowledge for other countries facing similar challenges. This note aims to assess human capital utilization in terms of inclusive jobs and gender equity in Türkiye towards broadening economic resilience following shocks.