Turkey industrial employment declines as public sector roles grow

Turkey is experiencing a shift in employment patterns as the industrial sector contracts while public sector employment continues to grow. Data from the Presidency Strategy and Budget Presidency indicates that public employment reached 5,417,126 people by the second quarter of 2026, an increase of 127,677 compared to the previous year. A significant portion of this growth is attributed to municipal economic enterprises.

In contrast, the industrial sector is facing challenges due to high inflation and difficult access to financing. According to the Turkish Statistical Institute (TÜİK), industrial production fell by 1.4% annually in June, with manufacturing employment dropping by 60,155 people over the past year. The share of wage earners in the industrial sector has decreased from 32.3% in 2022 to 27.6% today.

Reflecting these broader economic pressures, Güzeldağ Tekstil Dericilik Sanayi ve Ticaret Limited Şirketi, a long-standing textile firm in Bursa, has been ordered to undergo bankruptcy. After a court rejected the company's concordat request and ruled it insolvent, the Bursa Bankruptcy Office has called for creditors to submit their claims as the liquidation process begins.