Employment and Unemployment Overview
According to labor force statistics released by the Turkish Statistical Institute (TÜİK) for April 2025, the number of unemployed individuals stands at just over 3 million. In contrast, data from the Social Security Institution (SGK) shows that more than 2.1 million retirees continue to work in registered employment.
This figure highlights a significant overlap between the labor force and retirees, raising questions about the true scope of unemployment in the country. If retirees were to leave the workforce, the unemployment rate would fall from its current level to around 2.6 percent, with the total number of unemployed dropping to under one million.
Growth in Registered Employment
The total number of registered employees, including workers, public servants, employers, and self-employed individuals in agriculture, has risen to over 23.2 million. Compared to the previous month, this reflects an increase of more than 300,000 people, and nearly 285,000 more than in April of the previous year. A significant factor behind this rise is the surge in retirements following changes to the retirement age regulation, commonly referred to as the EYT reform. Despite retiring, a large number of individuals have chosen to remain in the workforce, often through mechanisms like Social Security Support Premiums, which allow them to work while drawing pensions.
The Role of Retirees in the Workforce
As of April, over 2.1 million retirees are officially registered as working, compared to just over 700,000 in 2017. These individuals continue to contribute through support premiums, and their participation now accounts for more than eight percent of the total registered workforce. When their numbers are added to the overall employment figures, the total number of registered employees reaches more than 25.3 million.
In addition to those officially recorded, there is a substantial but unquantified number of retirees working off the books. Employers often prefer hiring retirees informally to avoid paying support premiums, which further complicates efforts to accurately measure employment and unemployment rates.
Implications for Employment Policy
The number of officially working retirees now closely approaches the total number of unemployed people in the country. Many retirees return to work due to insufficient pension income, the demand for experienced labor, or to continue running their own businesses. If each of these registered working retirees were instead replaced by unemployed individuals, the unemployment rate in Turkey could theoretically drop to as low as 2.5 percent.
A report from the Economic Policy Research Foundation of Turkey (TEPAV) emphasizes this dynamic by including those paying support premiums in its employment monitoring. According to their latest bulletin, the total number of registered workers in April increased by over 350,000 compared to the previous month and by more than 430,000 from the same time last year. Hatay, one of the provinces hardest hit by past earthquakes, experienced the most notable annual growth, with nearly 100,000 new jobs.
Looking Ahead
While the phenomenon of retirees continuing to work is not new, its growing scale is reshaping the labor market. Policymakers face a complex challenge in balancing support for retirees, reducing unemployment, and addressing informal employment practices. The interplay between pensions, labor participation, and economic necessity continues to be a key area of focus for Turkey’s workforce development strategies.
