The structure of economic growth and employment effects in Türkiye

In an economy with high unemployment rate, notion of high growth performance will lower the unemployment rate has become very questionable. Because the economic growth Türkiye and various other countries around the globe experienced has not created necessary/adequate amount of employment opportunities and this period was called jobless growth. Economic growth is a macroeconomic variable which plays a key role in increasing living standards; however, this variable's decline in creating an increase in employment rates has raised questions arguing the quality and sources of the growth. Regarding to these developments, the structure of economic growth and employment effects in Türkiye is to be tried to presented. The method used to examine the employment effects of growth in Türkiye is granger causality analysis and johansen co-integration analysis. Thanks to the econometric model applied for the 2000-2021 period, the relationship between growth and employment in the Türkiye economy has been empirically examined. According to the results of the study, a causal relationship from economic growth to employment and from employment to economic growth has not been determined. Although there is no relationship between economic growth and employment for the 2000-2021 period in the Türkiye economy, the employment elasticity ratios calculated in the first section reveal that growth does not create employment for the 2000,2002,2003,2004,2019 and 2020 periods in Türkiye.