September 7, 2023

The Ankara Chamber of Commerce (ATO) President, Gürsel Baran, has revealed that companies are currently grappling with a severe labor shortage. Even for semi-skilled or unskilled positions, employers are finding it increasingly challenging to secure workers. Baran noted that despite significant investments in plants and other facilities, companies continue to struggle in their search for potential hires. The most pressing issue facing these businesses, he added, is the scarcity of semi-skilled workers.

**Worker Shortage Impacts Production Potential, Contrary to Robot Concerns**

Addressing concerns about automation replacing human workers, Baran emphasized that the current labor shortage presents a unique challenge. He stressed that the inability to find semi-skilled or unskilled workers is adversely affecting the production potential of the country. The situation, he explained, is closely tied to the wage disparity between the public and private sectors, with higher public sector pay attracting workers.

**COVID Fallout and Digital Competition Strain Private Sector**

The lingering effects of the COVID-19 pandemic, coupled with intensifying digitalization, continue to place considerable pressure on the profitability of private companies, according to Baran. He noted that these factors have created a challenging environment for private enterprises. Wages offered by low-profitability private sector businesses significantly lag behind those in the public sector, making it difficult to meet the wage demands of potential employees.

**Urgent Need to Encourage Youth to Pursue Vocational Education**

Baran stressed the importance of encouraging young people to enroll in vocational schools to address the labor shortage. Despite having a large young population, Baran expressed concerns that this potential workforce is not being effectively utilized. He noted that a substantial portion of young individuals spends their time in cafes instead of pursuing vocational training or employment opportunities.

**Unemployment Rates Show Alarming Trend**

Official data reveals that the unemployment rate in the country increased from 9.5 percent in May to 9.6 percent in June, totaling 3.34 million individuals without jobs. Among the country’s youth, aged between 15 and 24, the unemployment rate saw a worrying rise from 17.4 percent to 18.6 percent in June. For male youth, the jobless rate increased from 14.5 percent to 15.4 percent, while for female youth, it surged from 22.7 percent to 24.2 percent.

Source: Hürriyet Daily News
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