The development of unemployment in Turkish economy, the youth unemployment problem and recommendations for solution

Stagflation occurred in 1970s due to petrol shocks on the world. In the case of stagflation production is decreased, consumption reduces and both inflation and rate of unemployment increase. Rate of unemployment during this period elevated to the highest point since the World War II. Previously being more intense in the less developed countries, the issue of unemployment exerted its impacts on all countries of the world due to concept of globalization. Unemployment is an important problem which is being more common among the young people and requiring efforts to solve it. Unemployment among the young people has become one of the most important problems not only developing countries such as Turkey but also developed countries of the European Union and other developed countries all around the world. Based on the research performed so far, unemployment rate among the young people is much higher than the overall unemployment rate in Turkey as in other parts of the world. Overall unemployment as well as unemployment among the young people should be addressed as a global problem. There are many factors affecting unemployment among the young people. Some of them include economical stability, growth, qualification incompatibility, length of period of job-finding among the first-time job seekers, and educational level. The present study gives explanations on definitions and theories of unemployment. Distribution of employment in several fields in Turkey has been mentioned and developmental process of unemployment has been addressed. Additionally definitions, causes and consequences of unemployment among the young people are explained. Finally, after reviewing the studies from Turkey and world, the relationship between unemployment among the young people in Turkey and growth, educational level, and rate of inflation was studied using econometric analyses. Keywords: 1) Employment, 2) Unemployment, 3) Labor force, 4) The youth unemployment