Youth unemployment in Turkey emerges as a critical socio-economic challenge shaped by structural inefficiencies in the labor market and the mismatch between educational outcomes and employment demands. Although Turkey’s large young population offers a potential demographic dividend, macroeconomic instability, sectoral imbalances, and limited job creation in high-skill domains keep youth unemployment rates persistently high. This study examines the economic dynamics of youth unemployment by focusing on two interrelated themes: the accelerating digital transformation of the labor market and the growing mismatch between education and labor market needs. While digitalization presents new opportunities—particularly in areas such as software development, data analytics, and digital entrepreneurship—its ability to automatically generate employment is limited, especially for low- and medium-skilled youth and in regions with inadequate digital infrastructure. Many young individuals also lack the necessary skills due to outdated curricula and limited access to vocational or technological training programs. The research further investigates how regional inequalities, gender-based disparities, and informal employment affect young people’s job prospects. The findings underscore the need for a structural transformation of the Turkish education system to equip students with digital competencies and social skills aligned with labor market requirements. Policy recommendations include early digital skills education, public-private partnerships for workforce development, targeted digital infrastructure investments, and support for young entrepreneurs. These strategies aim to make digitalization an inclusive opportunity and enhance the employability of Turkey’s youth in a manner that balances efficiency, equity, and sustainability.
Kozallık et al. (Sun,) studied this question.