Turkey faces youth unemployment and SME economic shifts

Recent data from the Turkish Statistical Institute (TÜİK) for the first quarter of 2026 indicates significant challenges for young people in Turkey. According to the report, 23.6% of those aged 15-24 are neither in education nor employed. This figure rises to 26.6% for the 15-29 age group and 28.2% for the 15-34 age group. İhsan Aytemiş, President of the Meşe Association, criticized the labeling of these individuals as merely “home youth,” arguing that many are prevented from working due to economic hardships, lack of job opportunities, or the need to care for family members.

Separately, an OECD report on SME policies highlights the critical role of small and medium-sized enterprises in the Turkish economy. SMEs account for approximately 68.5% of total employment in the country and contribute 41.2% to the value added created in the economy. The report notes that Turkish SMEs are increasingly integrating into global value chains through stronger ties with multinational corporations.

To support the green transition, 250 million dollars has been allocated to SMEs through KOSGEB under the Green Industry Program. Additionally, a Credit Guarantee Fund with a volume of approximately 3.1 billion euros is set to be deployed in May 2025 to facilitate access to green financing. Despite these advancements, the OECD noted that challenges regarding productivity and long-term competitiveness remain.