National Employment Strategy 2014 – 2023, Action Plan 2014 – 2016

1. The structural transformation of the global economy has an impact to great extent on the labour markets of the developed and developing countries. The impact of this transformation changes on the basis of the structural features of labour market and adequacy of government interventions to the labour market.

2. Turkish economy achieved high and continuous level of growth for the 2002-2007 period. Macroeconomic stability was ensured in this period and the interventions aiming at increasing employment were made. Although there were positive developments on employment, unemployment rate could not be decreased to the intended level. Main reasons for unchanged rates in unemployment can be explained as follows: the impact of the previous economic crisis, “not labour- intensive” technological developments and structural problems of the labour markets. These problems have made negative impact on employment, labour productivity and working conditions.

3. While Turkey was dealing with the structural problems in its labour market, global economy since World War II saw the biggest contraction in 2009. The most apparent impact of the crisis was seen in the labour market. The globally contracting demand resulted in the decline in the employment. Unemployment rate on the other hand increased at a faster pace with new entrants into the labour market together with job losses in the labour market. These developments in most of the advanced countries have led to serious upheavals and Turkey experienced 4 percent increase in unemployment while it previously stood around 10 percent.

4. Economically and socially unsustainable economic situation in Turkey started recovering in

2010. Unlike in developed countries, economic recovery in Turkey brought about a decrease in unemployment figures. The relatively restricted negative impact of the economic crisis and the rapid economic recovery in Turkey can be explained by the economic measures as well as employment protection oriented measures such as short work and employment incentives.

5. A comparative analysis of the recent developments and the current situation in Turkish economy suggests that macroeconomic stability is albeit necessary but not sufficient to create jobs. For this reason, it is also considered necessity to reform the labour market for resolving its structural problems becomes stronger everyday The progress in this area will increase the efficiency of the measures on employment.

6. The strategy aims at resolving structural problems in labour market, bringing strong solutions to unemployment through increasing growth’s impact on employment in medium and long term. www.uis.gov.tr 1 National Employment Strategy (2014-2023)

7. Ministry of Labour and Social Security started the preparatory works for the “National Employment Strategy” in October 2009. Preparatory works were conducted by the “Employment Consultation Committee” composed of academicians and public servants. The fact that the success of employment oriented policies depend on their implementation within a holistic approach is the main motivation of the Strategy.

8. Strategy is built on four main policy pillars. In identifying policy pillars, special importance is given to maintaining employment oriented macroeconomic policies, increasing labour productivity, eliminating rigidity of labour market, increasing job security of employees, supporting vulnerable groups in accessing the labour market with a more comprehensive social security protection coverage and the principle of flexicurity as the basic approach.

9. Main policy pillars are defined as follows; § Strengthening links between education and employment, § Ensuring security and flexibility in the labour market, § Increasing employment of vulnerable groups, § Strengthening links between employment and social protection

10. The Strategy defines employment strategies for the sectors mentioned below in line with the identified policy pillars as well as growth and development trends of Turkey; § Tourism, construction, finance, information technology and health sectors which have a high growth potential or a high employment elasticity of growth § Labour intensive sectors of agriculture, textile and garment having high employment capacity.

11. There is a compromise of relevant parties of labour market on addressing problems and needs of employment with a holistic approach as well as for implementing the policy suggestions within the framework of a strategy. There was a participatory approach during preparatory phase of the strategy. In this phase, public institutions, professional organisations, employee- employer confederations, civil society organisations, academicians, media and politicians were involved in two 3-day workshops.

12. The preparatory works during penning of the strategy were punctiliously carried out by the committees composed of the representatives of all relevant public institutions. These committees also prepared the action plans attached to Annex-1. The actions defined in the action plans were identified on the basis of criteria of “efficiency and feasibility”. 2 Ulusal İstihdam Stratejisi (2014-2023) www.uis.gov.tr 3 MACROECONOMIC FRAMEWORK TARGETS AND OBJECTIVES OF STRATEGY CHAPTER ONE National Employment Strategy (2014 – 2023) 6 Macroeconomic Framework I. MACROECONOMIC FRAMEWORK A. Current Situation

13. Turkish economy during 1990s was very fragile arising from the high inflation rates and high public deficits. Due to the crisis in 2001, 2000s can be categorized as a period of macroeconomic stability and high growth rates. During these years, inflation dropped rapidly; real interest rates went down; public finance improved and several structural reforms implemented. Related to these developments, Law no 5018 on Public Financial Administration and Controlling and Law no 4734 on Public Procurement were enacted; regulatory and auditing boards were established; strategic planning in public administration were implemented; social security and general health insurance reforms were also conducted. This period also witnessed that Turkish public debt stock became more sustainable, banking and finance sector became more resistant to the crisis.

14. Turkish economy has an average growth rate of 6,8 percent during the period of 2002-2007. The structural problems in the labour market limited the impact of the high level growth to the main labour indicators. Although non-agricultural employment growth per year was 2,8 percent, as a result of the dissolution in the agricultural sector, total employment contracted 0,6 percent per year. Total factor productivity impressively increased due to the impact of the crisis and the accelerated structural reforms. On the one hand, this situation hiked up growth, on the other hand, it limited the rise in employment. Therefore the unemployment rate climbed to 10 percent during 2001 crisis did not go down and continued to be around this level till the end of 2007. During the period of 2002-2007, as a fact that both approximately 3 million non-agricultural jobs were created and non-agricultural labour force increased by 3.4 million, non-agricultural unemployment rate did not improve. The growth achieved as a result of structural transformation policies started to slow down from 2007 onwards and the global financial crisis in 2008 impacted negatively on Turkish economy.

15. The world economy had continuous high growth rate from 2004 onwards, however it slowed sharply starting in 2008. The biggest contraction in world economy happened in 2009 since World War II. While total GDP of the world increased 3 percent in 2008, it declined by 0,7 percent in 2009 and it bounced back in 2010 by an increase of 5,3 percent. This rise in GDP is driven by the developing countries with 7,3 percent increase in growth. In the same period, the developed countries had a growth rate of 3,2 percent. On the other hand, the GDP of the world increased by 4 percent in 2011 and by 3,2 percent in 2012. The developing countries had a growth rate of 5,1 percent while developed countries had a growth rate of 1,2 percent.

16. International trade volume contracted 10,7 percent in 2009 and unemployment rates in the developed countries swiftly increased. However, the global economy recovered at the end of 2009 and international trade volume increased 12,9 percent in 2010. Although these positive figures in economy can be considered as a good sign, particularly South European countries which face the risk of deepening financial crisis are of major concern. Thus, the rise in international trade volume has decreased to 6 percent in 2011 and 2,5 percent in 2012. www.uis.gov.tr 7 National Employment Strategy (2014 – 2023)

17. Rising unemployment is an important risk which is on the agenda of all international actors. The recovery in both growth and trade volume did not materialize in unemployment and the unemployment continued to increase in many countries. Unemployment rate increased in Euro region to 10,1 percent, in United States of America (USA) to 9,6 percent, in Organisation for Economic Co-operation and Development (OECD) countries to 8,3 percent in 2010. International Labour Organisation (ILO) estimates that unemployment globally reached 212 million by an increase of 27 million. However recovery process differs among countries. It is envisaged that in European Union (EU) and in some other countries recovery will take longer than others due to their increasing financial burden. Despite the inception of recovery in global economy, high level of unemployment continues to be a main problem in the labour market. While the unemployment rate rose to 11,4 percent for Euro region in 2012, it decreased to 8,2 percent in the USA and remained unchanged in the most of OECD countries.

18. Global crisis impacted Turkish economy in terms of trade, finance and expectations. The serious impact of the global crisis on EU where half of Turkish goods are exported, have direct negative impact on the Turkish export performance. On the other hand, because of reduction in financial flow due to turmoil in global financial markets, capital outflow increased in Turkey as in other developing countries and international foreign direct investment have decreased. Lastly, the global crisis culminated in elevated uncertainty in Turkey, as happened in all over the world, engendered the slowdown of the economy by affecting confidence and expectations in the economy negatively. Related to the decline in economic activities, employment and unemployment rates were negatively impacted.

19. In order to restrain the negative effects of the global crisis, the measures taken in mid- 2008 helped recovery of the economy earlier than expected. The employment related measures taken against to the crisis can be classified as 5 percent reduction in social security contribution for employers, the employment incentives on young, women, disabled, graduates of vocational education and training (VET) and people with VET certificates, increasing benefit and duration of short work, active labour market measures including especially work programs for public benefit. The total cost of these employment related measures amounted to 8,2 billion Turkish Liras (TL) in 2008-2010 period. The economy in 2009 contracted below the expectations with the rate of 4,8 percent and it was later compensated by the growth 9,2 percent in 2010. The economy continued to grow in 2011 by 8,8 percent and 2,2 percent in 2012. The growth is targeted 4 percent in 2013.

20. The most apparent impact of the global crisis was seen in the labour market. Due to contracting global demand, production particularly in industry sector went down and reduction in production capacity and uncertainty in global economy led to the swift decline in employment. Along with the employment losses, the rise in labour force participation added the unemployment figures and unemployment peaked in February 2009. The recovery in economy in the second and third quarter of 2009 led to a rise in employment figures faster than expected. The unemployment rate hit 14 percent in 2009, declined to 11,9 percent in 2010, further went down to 9,8 percent in 2011 and 9,2 percent in 2012. The developments regarding the labour market during the period of 2004-2012 are given in Table 1. 8 Macroeconomic Framework Table 1: Labour Market Indicators Indicators 2004 2005 2006 2007 2008 2009 2010 2011 2012 Population (Thousand) 66.379 67.227 68.066 68.901 69.724 70.542 71.343 72.376 73.604 Population over 15 (Thousand) 47.544 48.359 49.174 49.994 50.772 51.686 52.541 53.593 54.724 Young Population (15-24 age) (Thousand) 11.840 11.757 11.670 11.583 11.490 11.513 11.548 11.534 11.574 Labour force (Thousand) 22.016 22.455 22.751 23.114 23.805 24.748 25.641 26.725 27.339 - Male 16.348 16.704 16.836 17.098 17.476 17.898 18.257 18.867 19.147 - Female 5.669 5.750 5.916 6.016 6.329 6.851 7.383 7.859 8.192 - Youth 4.474 4.436 4.365 4.364 4.381 4.454 4.426 4.529 4.422 - Agriculture 5.793 5.215 4.978 4.955 5.080 5.350 5.785 6.225 6.178 - Non-agriculture 16.223 17.240 17.773 18.159 18.725 19.398 19.855 20.500 21.161 Labour force participation rate (%) 46,3 46,4 46,3 46,2 46,9 47,9 48,8 49,9 50,0 - Male 70,3 70,6 69,9 69,8 70,1 70,5 70,8 71,7 71,0 - Female 23,3 23,3 23,6 23,6 24,5 26,0 27,6 28,8 29,5 - Youth 37,8 37,7 37,4 37,7 38,1 38,7 38 39,3 38,2 Employment (Thousand) 19.632 20.067 20.423 20.738 21.194 21.277 22.594 24.110 24.821 - Male 14.585 14.959 15.165 15.382 15.598 15.406 16.170 17.137 17.512 - Female 5.047 5.108 5.258 5.356 5.595 5.871 6.425 6.973 7.309 - Youth 3.554 3.554 3.533 3.493 3.484 3.328 3.465 3.697 3.647 Sectoral Breakdown of Employment (Thousand) - Agriculture 5.713 5.154 4.907 4.867 5.016 5.254 5.683 6.143 6.097 - Non-agriculture 13.919 14.913 15.516 15.871 16.178 16.023 16.911 17.967 18.726 - Industry 3.919 4.178 4.269 4.314 4.441 4.130 4.496 4.704 4.751 - Construction 966 1.107 1.196 1.231 1.241 1.249 1.431 1.676 1.709 - Services 9.033 9.628 10.051 10.327 10.495 10.644 10.986 11.589 12.266 Employment Rate (%) 41,3 41,5 41,5 41,5 41,7 41,2 43 45 45,4 - Male 62,7 63,2 62,9 62,7 62,6 60,7 62,7 65,1 65,0 - Female 20,8 20,7 21,0 21,0 21,6 22,3 24 25,6 26,3 - Youth 30,0 30,2 30,3 30,2 30,3 28,9 30 32,1 31,5 Unemployment (Thousand) 2.385 2.388 2.328 2.376 2.611 3.471 3.046 2.615 2.518 - Male 1.762 1.746 1.671 1.716 1.877 2.491 2.088 1.730 1.635 - Female 622 642 658 660 734 979 959 885 883 - Youth 919 881 832 871 897 1.126 961 832 775 - Agriculture 81 61 71 88 64 96 102 82 81 - Non-agriculture 2.304 2.327 2.257 2.288 2.547 3.375 2.944 2.533 2.437 Unemployment rate (%) 10,8 10,6 10,2 10,3 11,0 14,0 11,9 9,8 9,2 - Male 10,8 10,5 9,9 10,0 10,7 13,9 11,4 9,2 8,5 - Female 11,0 11,2 11,1 11,0 11,6 14,3 13 11,3 10,8 - Youth 20,6 19,9 19,1 20,0 20,5 25,3 21,7 18,4 17,5 - Agriculture 1,4 1,2 1,4 1,8 1,3 1,8 1,8 1,3 1,3 - Non-agriculture 14,2 13,5 12,7 12,6 13,6 17,4 14,8 12,4 11,5 Unemployment rate by educational level (%) - Illiterate 4,3 4,9 4,8 5,2 6,3 8,0 6,0 4,6 3,9 - Less than high school 9,7 10,1 9,8 9,8 10,7 13,9 11,6 9,3 8,7 - High school including VET 15,2 13,8 13,0 13,0 12,9 16,9 14,6 11,8 10,9 - Higher education 12,2 10,0 9,6 9,7 10,3 12,1 11,0 10,4 10,1 Unregistered employment rate (%) 50,1 48,2 47,0 45,4 43,5 43,8 43,3 42 39,0 - Agriculture 89,9 88,2 87,8 88,1 87,8 85,7 85 83,8 83,6 - Non-agriculture 33,8 34,3 34,1 32,3 29,8 30,1 29 27,8 24,5 - Unregistered employment in wage earners 32,1 32,0 31,5 29,4 26,4 26,2 25,7 25,1 22,0 Source:TURKSTAT www.uis.gov.tr 9 National Employment Strategy (2014 – 2023)

21. Considering sectoral breakdown of the employment, there has been a transformational process in the agricultural sector as its share in total employment is continuously declining. The share of agricultural sector in total employment was 47 percent in 1990 while this share declined to 36 percent in 2000, went down to 23 percent in 2007. Recently this share went up to 25 percent. As there is an inverse relationship between the level of development and the share of agricultural employment in a country, and taking into account the recent developments in the agricultural sector, it is estimated that the dissolution in the agricultural sector will continue in long term..

22. Related to the decline in the share of agriculture in employment, it is seen that share of industrial and services sector in employment is increasing. While the shares of industry and services in employment were respectively 15,3 percent and 37,8 percent in 1990, they increased to 17,7 percent and 40 percent in 2000, went up to 19,1 percent and 49,4 percent in 2012.

23. One of most structural problems of the Turkish labour market is unregistered employment. The share of unregistered employment during the period of 2004-2012 went down from 50 percent to 39 percent. During this period, the share of unregistered employment in agriculture sector declined from 90 percent to 83,6 percent and the share of unregistered employment in non-agricultural sector also declined from 34 percent to 24,5 percent. In the framework of Strategy for Fight Against Unregistered Economy, the measures such as enhanced coordination and cooperation among public institutions, increased inspection and cross-examination controls, incentives on taxation and social security contributions, institutionalization which is the mostly related to the economic development are the main reasons for decline in unregistered economy. However, unregistered employment rate in Turkey is still higher than most of the advanced countries. It is prevalent in agriculture, construction, retailing, commerce, hotel and restaurants and transportation sectors. Furthermore, the unregistered employment is also high among the youth, the elderly and people with low educational attainment. Another fact indicates that the bigger the scale of a company, the less likely the unregistered work. Illegal foreign work is also becoming an important problem area in the unregistered employment. Turkey has been recently target country while it was previously transit country for illegal foreign workers.

24. Ratio of young population to the total population in Turkey is the highest among European countries. On the basis of 2012 data of Turkish Statistical Institute (TURKSTAT), total population is 75.627.384. 50 percent of the population is under 30 years old while 33,4 percent of the population is under 20 years old. In information age, qualified human capital is more important than physical capital. Thus, it provides an important source in case that this source is effectively utilized. The shares of the age groups in population are estimated to be 44,2 percent and 29,3 percent in 2025 for the groups under 30 and under 20 respectively. The estimations which demographic windows of opportunity will be over in time, sign that there will be supply-oriented problems in the labour market in the longer run and there will be pressure on the social security system. 10 Macroeconomic Framework

25. Approximately 16 percent of the labour supply in Turkey comprised of the youth (15-24 years old). The unemployment rate among the youth has been over the average of unemployment. The youth unemployment was averagely over 9,5 percent of the general unemployment rate during the period of 2004-2012. The youth unemployment culminated to 25,3 percent in 2009 by the impact of the crisis and it went down to 17,5 percent in 2012. On the basis of the 2012 statistics of European Statistical Office (Eurostat), the share of elderly population (over 65) is 7,3 percent while it is 17,8 percent for countries in EU-28. Although there are difficulties faced in creating jobs for the youth, Turkey has the potential for further economic and social development by effectively harnessing its demographic advantage compared with the advanced economies in coming decades.

26. Turkey lags behind the advanced countries in terms of activity and employment rates. The 2012 statistics of Eurostat reveal that activity rate (among 15-64 years of age) in Turkey is 53,3 percent while it is 71,8 percent for EU-27. Similarly, employment rate in Turkey is 48,9 percent in 2012; it stands at 64,2 percent in EU-27. The low rate of activity and employment is directly related to the fact that women’s activity and employment rates lag considerably behind EU average. The female activity rate in Turkey is 31,8 percent in 2012 while it is 65,6 percent in EU-27. Similar case is also observed in employment rates of women. Female employment in Turkey is 28,7 percent in 2012 while it is 58,6 percent in EU27. Nonetheless it is also observed that women’s participation in the labour market have increased during global economic crisis in recent years.

27. A comparative table on the labour market between medium and high income countries is given in Table-2 using labour market statistics of World Bank. Here too, it gives similar observations of lower female activity and employment rate as happened in the EU comparison, when Turkish case is compared with medium and high income countries. It also demonstrates the importance of agricultural employment for women in Turkey is more definite in comparison with the other countries.

28. One of the main reasons for high structural employment in Turkey is low qualified labour force. Labour force statistics of 2012 reveal that 61,5 percent of the labour force and 55,9 percent of the unemployed people in Turkey have less than high school education and illeterate The disharmony between the qualifications of job-seekers and demand of the labour market is another indicator of this situation. A well-qualified and productive human capital is the most important factor in making economic growth process healthier and stable. It is observed that human capital is inadequate in Turkey. High human capital in advanced countries is effective to grow in a stable environment. In this framework, prioritizing public resources focusing on enhancing human capital is the utmost important for a longer period of growth performance. www.uis.gov.tr 11 National Employment Strategy (2014 – 2023) Table 2: A Comparison of International and Turkish Indicators Medium Category Income High Income Indicator/ Year Turkey Countries Countries (Upper Line) Ratio of youth dependency 2012 30,6 25,2 39,0** (Working age population %) Population between 0 and 14 years old 2012 21,5 17,0 26,0** Population between 15 and 64 years old 2012 70,5 67,3 66,7** Population over 65 years old 2012 8,0 15,8 7,3** Life expectancy at birth, female (year) 2011 76,0 82,0 78,1** Life expectancy at birth, male (year) 2011 72,0 76,0 71,2** Labour force participation rate (%) 2011 68,6 60,8 49,5** Labour force participation rate, female (%) 2011 58,6 52,8 28,1** Labour force participation rate, male(%) 2011 78,4 69,2 71,4** Labour Force Primary education, female (female labour force %) 2007 27,9* 23 62,4** Primary education, male (male labour force %) 2007 37,1* 26,4 63,4** Tertiary graduate, female (female labour force %) 2007 29,6* 42 21,1** Tertiary graduate, male (male labour force %) 2007 19,5* 37,7 15,0** Unemployment rate (total labour force %) 2011 4,9 7,9 9,8** Employment rate (population + 15 %) 2011 64,7 56,0 45,1** Employment rate (Female population + 15 %) 2011 55,4 48,6 25,3** Employment rate (Male population + 15 %) 2011 73,8 63,7 65,4** Agriculture (total employment %) 2010 31,8 3,5 24,2** Employment Agriculture, female (female employment %) 2010 9,3* 2,7 39,4** Industry (total employment %) 2010 26,3 21,8 26,5** Industry, female (female employment % ) 2010 18,9* 10,7 15,2** Services (total employment %) 2010 42,2 74,05 49,5** Services, female (female employment %) 2008 71,7* 86,2 45,4** Non – agriculture female employment rate (share 2011 44,6* 47,4 23,6** of non-agricultural employment - %) Source: World Bank * 2012 year statistics ** 2012 year statistics 12 Macroeconomic Framework

29. Regarding the registered employment, the rigidity of labour market and high non-wage labour cost are the other obstacles in creating jobs of the economic growth. Non-wage costs since 2004 have been reduced through various means and regulations such as making the base wage for social security contributions equal to the net minimum wage, application of minimum living relief, reduction of 5 percent social security contribution, and other incentives on employment. As a result, while Turkey is closer to the average of OECD for the non- married workers in terms of ratio of wage costs to non-wage costs this ratio is over OECD average for workers married with two children. While ratio of wage costs to non-wage costs stands at 35,9 percent in Turkey in 2010 for the workers married with two children, OECD average is calculated 24,8 percent. On the other hand, while this ratio is for non-married workers in Turkey 37,4 percent, it is 34,9 percent in OECD.

30. The statistics of year 2012 reveal the fact that activity and unemployment rate expose significant discrepancy among provinces and regions. While unemployment rate in TR90 East Black Sea NUTS2 region is considerably below the average of Turkey (9,2 percent) standing at 6,3 percent, labour participation rate in the same region is above the average of Turkey (50 percent) with 55,5 percent. However, while labour participation rate in TRC2 Southeast Anatolia NUTS2 region is quite below average of Turkey with 35,2 percent, unemployment rate has been above the average of Turkey with 12,4 percent. This indicates the need for identifying local policies on labour market and the strengthening mechanisms for allowing local employment policies.

31. In order to increase the employment in Turkey, it is utmost important factor having a higher employment elasticity of growth as well as sustainability of growth. In creating and applying employment measures, it will contribute to increasing this elasticity when local and sectoral needs are taken into account. B. Policy Framework of the Employment Strategy

32. Increasing employment is one of the development axes of the Ninth Development Plan. Pursuant to the Plan, improving labour market, increasing the sensitivity of education to labour demand and developing active labour market policies are identified as policy priorities. It also envisaged preparation of a National Employment Strategy included in Annual Plans of 2010, 2011, 2012, 2013 as a measure. The Tenth Development Plan, covering the period between 2014 and 2018, was published in the Official Gazette dated July 6th of 2013. The plan identifies important targets and policy measures related to employment.

33. In order to restrain unemployment in Turkey and improve working conditions preserving peace at workplace, three main issues emerges: § Maintaining stable and high growth, § Increasing growth effect on employment, § Reducing unregistered employment. www.uis.gov.tr 13 National Employment Strategy (2014 – 2023)

1. Maintaining Stable and High Growth

34. Tenth Development Plan engenders necessary policies and priorities for establishing high and stable growth environment in order to create adequate jobs in the labour market. In order to accelerate economic development in Turkey it envisages to maintain stable and high growth with progress in the fields below: § Macroeconomic stability, § Human capital and labour market, § Technological innovation, § Physical infrastructure, § Institutional quality

35. Strategy presumes that the policy framework established here will be carried out in line with European Employment Strategy and Medium Term Programme, Annual Programs and the budget. It is estimated that the growth performance of Turkey after the global financial crisis will continue in the medium term. This performance will have an important impact on the job creation and reaching out the targets of the Strategy.

2. Increasing the Effects of Growth on Employment

36. For the success of the Strategy in terms of reaching the targeted employment rates, it is utmost important to increase job-creating capacity of growth in non-agricultural sectors. The capacity at issue which is constructed as the concept “employment elasticity of growth” can be only enhanced through overcoming the structural problems of the labour market. This subject has been taken into account while identifying fundamental policy pillars of the strategy.

37. The structural problems such as inadequacy of the education and training in resolving the needs of labour market, lack of qualified labour force, serious bottlenecks for some groups in accessing employment, high unregistered employment, rigidity of labour market, inadequacy of social assistance system in encouraging registered employment emerge as the main obstacles for the effectiveness of the labour market, thus increasing job-creating capacity of growth. The improvements in overcoming these problems will contribute increasing job- creating capacity of growth. Strategy has been prepared with a perspective of eliminating these obstacles.

3. Reducing Unregistered Employment

38. In order to achieve targets of the Strategy, it is necessary to reduce unregistered employment which is one of the major structural problems of Turkey’s labour market. The reasons and forms of unregistered employment may be various and all segments of society have to be determined in order to keep it at an acceptable level. The fight against unregistered employment requires using both incentives and disincentives and a coordinated implementation of the actions defined under the following five topics: 14 Macroeconomic Framework a. Strengthening Registered Sectors

39. Strengthening registered sectors will decrease unregistered employment demand in Turkey. In this regard, it is necessary to reduce administrative, financial and legal obligations of enterprises within the limits of state budget; to eliminate excessive procedures and regulations directing enterprises for unregistered activities and unregistered employment. Resolving financial problems of SMEs which provide considerable employment opportunities and at the same time have a high unregistered employment, can increase employment and meantime decrease unregistered employment. b. Preventing Unregistered Employment

40. The measures in fight against unregistered employment such as increasing coordination and cross-check among central and local public institutions, increasing sanctions and accelerating inspections, removing tax and premium amnesties will direct employers and unregistered employees to registered employment. In addition, as survivor pension receivers and social assistance receivers tend more to work as unregistered, the audit and inspections are to be intensified and legal and administrative measures are to be taken. c. Increasing Entrance into Registered Employment System

41. One of the reasons of having high unregistered employment is inadequate education level and low employability of labour force. Active labour market policies and the measures targeting to increase the general and vocational educational attainment level in the Strategy will affect positively registering every employee, particularly the unregistered young and women for whom unregistered work is high. Furthermore, it is envisaged that the incentives given in the first job and guidance and counseling services in job and occupation selection will increase entrance into registered employment system In addition, providing the social security rights of flexible employees who are potentially unregistered unemployed, as laid down under the heading of ensuring security and flexiblity in the labour market, will reduce the unregistered employment in this field. d. Awareness Raising on Registered Employment

42. Changing negative attitude and behaviors to the registered employment and raising awareness of the employees on registered employment will have a positive impact on fighting with unregistered employment in the long term. Reducing complaints on the public services will also encourage registered employment. e. Preventing Illegal Foreign Work

43. One of the most important problems in Turkey in unregistered employment is illegal foreign work. It is acknowledged that its impact on the labour market is very high. Turkey has become target country for illegal foreign workers while it was previously transit country. Illegal foreign work increase unemployment and unregistered employment. They are mostly employed in micro-enterprises, precarious jobs as they are less qualified, unregistered labour market and in the sectors where inspections are rarely made. www.uis.gov.tr 15 National Employment Strategy (2014 – 2023)

44. In order to curb illegal foreign work, border controls and inspections have become stricter and fines given to illegal foreign workers and their employers have been increased in the EU and in OECD countries. Many countries impose heavy fines on employers who hire illegal foreign workers or help those enter into the country. France, Germany, Finland, Norway, Switzerland, Greece, Belgium and Japan sentence employers who hire illegal foreign workers and people who mediate their employment to 1-3 years of imprisonment and fines.

45. In the fight against unregistered employment in Turkey, imposing harsh penalties, including imprisonment, if repeated, suspending civil rights and banning from tenders, imposing sanctions on employers to pay all legal rights and fees of illegal foreign workers, keeping employers responsible for employment of all illegal foreign workers that the sub-employer hired, increasing inspections; and ensuring a strict coordination and collaboration among public institutions shall notably decrease the illegal employment of foreigners.

46. The aforementioned issues are of great importance for the successful implementation of the Strategy, which shall be a great step towards the realization of the Tenth Development Plan. Therefore, the policies and measures identified by the Strategy will establish the framework in achieving the goals.

47. One of the important steps during the EU candidacy process is adopting Turkey to the European Employment Strategy. The target of European Employment Strategy is to create more jobs as well as to ensure financial support, equal rights and new job opportunities for the groups in access to employment such as the youth, elderly, people with disabilities, women and ethnic minorities. In this regard, there are four pillars of the European Employment Strategy which are employability, entrepreneurship, adaptability to improvement and conversion process andproviding equal opportunities for all.. National Employment Strategy has been prepared taking into account these priorities.

48. During preparation phase of the strategy, the priorities set out in other national policy documents were taken into account. In this regard, compatibility was ensured in line with the financial and sectoral policies.

49. It is crucial to strengthen cooperation between related institutions for the successful implementation of the aforementioned policy framework. Complementarity of the policies developed and services provided by different institutions will increase efficiency of the implementation. It is therefore necessary to correctly identify, to prioritize the requirements, and to develop plans accordingly with participatory approach including data and information sharing. It is also important to make the impact analysis of the regulations prepared by public institutions and share the results with the relevant labour market actors, especially with the Ministry of Labour and Social Security (MoLSS) and the Turkish Employment Agency (İŞKUR). The whole process will increase the efficiency of the regulation through enabling related institutions to improve their ability to address the requirements. 16 Targets and Objectıves of the Strategy II. TARGETS AND OBJECTIVES OF THE STRATEGY A. Targets In the framework of policy and measures and policy framework of this Strategy, main targets of the National Employment Strategy are as follows:

1. Unemployment rate will be 5 percent by 2023.

2. Employment rate will be 55 percent by 2023.

3. Unregistered employment rate in non-agricultural sectors will be below 15 percent by 2023. B. Objectives

1. Holistic Approach It is crucial to develop and implement the Strategy with a holistic approach considering the policies and measures to be in line and consistent with each other in the light of four main policy pillars.

2. Equal Opportunities It is crucial to develop policies addressing specific conditions of certain demographic groups, in order to provide equal opportunities for all. It is definitive to ensure equal opportunities from education to all relevant sectors and anti-discrimination practices for the vulnerable people, such as women, people with disabilities, the poor, youth, , and the population living in rural areas.

3. Protecting Worker, Not Job itself It is crucial to guarantee employability of the people, not the job itself, in the labour market through protecting the acquired rights; through protecting them against unemployment and the risks caused by unemployment.

4. No Additional Burden on Employers It is crucial to fund new incentive policies from the national budget or other resources rather than companies’ own budget in order to protect their competitive capacity.

5. Focusing on Social Dialogue In order to carry out successfully the Strategy, it is necessary to involve all relevant stakeholders in the decision making process regarding employment, as in the case with the preparation of the Strategy,

6. Incentive Approach It is crucial to establish an incentive approach instead of obligatory approach for the implementation of policies in order to be adopted by all labour market actors. www.uis.gov.tr 17 MAIN POLICY PILLARS CHAPTER TWO Main Policy Pillars 20 Strengthening Links Between Education and Employment I. STRENGTHENING LINKS BETWEEN EDUCATION AND EMPLOYMENT A. Current Situation

50. Since the 1990s, the importance of knowledge and thereby human capital is increasing due to the interacting factors such as the impact of globalization on economy and development, accelerating progress in science and technologies and reforms for institutional adaptation to the changes. The people with low educational attainment and low skilled, the elderly are the groups that are more affected negatively from the global economic crisis and increasing unemployment ratesin all over the world. This situation creates great risks for countries. Social policy and additionally active labour market policies towards these people and their families are established and implemented in order to support them for their earlier participation in the labour market. In this process the trainings play the major role aiming at enhancing the skills and knowledge on the basis of the needs of the labour market.

51. Level of basic knowledge and skills of the labour force is a main indicator for measuring mismatch between education and labour market. Program for International Student Assessment (PISA) which is conducted by OECD every 3 years measures the knowledge and skills of the students of 15 years old necessary for the participation in a modern society. In 2009 PISA test, the average score of Turkish students was 464 in reading skills, 454 in science, 445 in maths where Turkey ranked 32nd among 34 OECD countries. OECD average scores are in reading 493, science 501 and maths 496. Turkey ranked 43rd in science and maths while it ranked 41st in reading among 65 participant countries in 2009.

52. The public expenditure on education lags behind the developed countries. The average ratio of public expenditure on education in GDP for the year 2008 among OECD countries is around 5 percent. United Nations Educational Scientific and Cultural Organization (UNESCO) recommends to the developed countries allocating 6 percent of their GDP for sustainable development. In Turkey, ratio of education expenditures in GDP under social expenditures was 3,9 percent of its GDP while it was 4 percent in 2010 and 2011, 4,1 percent in 2012. It is expected that this ratio will be 4,3 percent in 2013. It should be mentioned that the public budget on education is inadequate and is not equally distributed among school types. OECD countries spend twice as much on higher education than they do for elementary level while in Turkey it is four times of what is spent for elementary level. General acceptance on distribution is to spend more on elementary level where social benefit is more efficient and to decrease dependency of higher education to the public budget.

53. Turkey’s enrolment rates particularly at pre-school and secondary education level are below EU and OECD average. The net enrolment rate in the academic year of 2012-2013 in pre- school for children aged 4-5 was 37 percent in Turkey, whereas it is 86 percent in the EU and 79 percent in OECD countries. The net enrolment rate in the academic year 2011-2012 for secondary school was 67,4 percent while it was 70,1 percent in the academic year of 2012- www.uis.gov.tr 21 Main Policy Pillars

2013. The same rate for EU is 84 percent and 82 percent for OECD countries. Net enrolment rate in the academic year of 2012-2013 for higher education was 38,5 percent.

54. There are various problems in foreign language teaching in Turkey. Although foreign language teaching was regulated to give at the fourth grade of the elementary school since the academic year of 1997-1998, the desired results have not been achieved. This creates great obstacles in accessing to knowledge and efficient use of technology.

55. As a result of recent investments in education, the number of school buildings and classrooms has considerably increased. For example, average number of students per classroom was 30 for elementary school, 31 for secondary school, 28 for general secondary school and 34 for vocational and technical secondary school by the academic year of 2012-2013. It is clear that number of students per classroom for vocational secondary school is higher than Turkey’s average on general secondary school. This makes it crucial to invest more on these schools. The number of students per teacher is 20 at the elementary school, whereas it is 16 students per teacher at general and vocational and technical secondary school.

56. The educational attainment level of the labour force in Turkey is low. This negative situation gives a gloomy picture in terms of current educational attainment of labour force, labour productivity, and related to this, economic growth. On the basis of data from 2012, 61,4 percent of the labour force in Turkey has an educational attainment with less than high school and no literacy.

57. VET participation rate in Turkey is relatively low compared to the EU and OECD averages, being 45,4 percent in Turkey and 47,8 percent in OECD for the 2012-2013 academic year.

58. The inadequacy of services such as vocational information, guidance and consultation constitute one of the weak aspects of Turkish education system. The fact that the youth is not guided timely, properly and efficiently causes great waste of public budget and resources.

59. There are problems regarding access to information and communication technologies and usage of these technologies. Current economies are information and communication based and service-intensive. For this reason, it is crucial to develop computer skills. Although there has been progress in access and in use of information and communication technologies, there are still important gaps.

60. Most important problem in Turkish education system is that it cannot provide qualified labour force to the needs of the economy. There are several problems with the education system ranging from the quality of the students and teachers to the lack of equipment. In this regard, not implementing internships which provide the biggest means for students to get into contact with the business world efficiently is a very important deficiency. For this reason, the range of workplaces for internship has been widened and the internship wages have been re- regulated on the basis of the capacity of each enterprise through Law No: 6111 (amending Law no 3008 on Vocational Education and Training) and higher education students intending to do internship are covered by the Law No: 3308 on the Vocational Education and Training. 22 Strengthening Links Between Education and Employment

61. Formal and non-formal training programs prepared regardless of the needs of business world make it difficult to train qualified professionals. The certificates and diplomas given to those completing these programs are inadequate in terms of proving the skills and knowledge that they have. Vocational Qualification Authority (VQA) has begun to work in order to establish links between education and employment, shape VET programs on the basis of needs of the business world, and recognize the skills, knowledge and competences of individuals at international level through National Qualification System (NQS). In this regard, VQA has also launched under its coordination the preparation of national occupational standards and national qualifications system together with public, employer and employee organisations. 360 occupational standards have been prepared and put into force after publication in the Official Journal as of the end of 2012. In addition, a pilot system has been established in measurement, assessment and certification on the basis of national qualifications and a draft report on National Qualifications Framework (NQF) has been prepared which is in line with European Qualifications Framework.

62. Being the basis of NQF, the project on Strengthening Vocational Education and Training (SVET) aimed at increasing sensitivity of the VET programs to the needs of business world. VET programs established within this project has been prepared with the all relevant stakeholders and sectors since 2004. Despite this, the sensitivity for labour market demand has not been achieved as intended. An action plan on Strengthening Relation between Employment and Vocational Education and Training under NQA coordination has been prepared in order to providing VET to the needs of the labour market; improving the cooperation and coordination among the ministries, relevant public institutions and private sector for strengthening employment-education relation; in order to effectively implement active labour market policies; and in order to increase employability of the labour force for resolving “without occupation and qualification” problem.

63. On the other hand, making VET programs compliant with national occupational standards and national qualifications framework prepared by VQA is vital in ensuring of quality assurance of VET and in responding to the needs of the business world. For the quality assurance in VET, VQA was vested the right of the accreditation of VET institutions through amendingthe Decree Law No: 665 on making changes in Ministry of Labour and Social Security Organization and Duties Law and some other laws and decree laws and the Law No:5554 on VQA. . Accredited VET system enhances the competitiveness of the countries against developed countries and protects mobility and quality assurance through providing qualified labour force to the labour markets. This system also ensures that individuals stay longer in the working life, enhances productivity in working life and accelerates adaptability to changing working and life conditions.

64. ALMP is an efficient means applied for the aim of training of the required labour force for the labour market; equipping unemployed people with the professional and work experience; supporting entrepreneurship; and filling in vacant positions in labour market in a short period of time. Being implemented in developed countries since 1930s, these programs have particularly been widely applied since 1990s. In Turkey, there is not any common database on the active employment programs. This prevents acquiring the reliable data. As sufficient sources had not been allocated www.uis.gov.tr 23 Main Policy Pillars to ALMPs in Turkey until quite recently, these programs could only be realized within projects and in limited numbers. However, with the regulations known as employment packages, as from 2008, by allocating wherewithal from the Unemployment Insurance Fund to Turkish Employment Agency (İŞKUR), a structural transformation on this issue has been launched.

65. Despite the considerable increase in the active labour market measures applied since 2009 by İŞKUR, in the light of current number of unemployed people, it is not possible to say that these measures are sufficient. It is obvious that this phenomenon is related to the inadequate institutional capacity of İŞKUR as it should be both at local and national levels. Compared to the EU countries with similar population of Turkey, it is seen that number of İŞKUR’s staff are very insufficient. Assessing Eurostat 2009 data, the average of 21 EU member countries in terms of number of unemployment per staff member in employment institutions is 62, while the number of unemployment per staff in Turkey is 917 in 2010. 2013 İŞKUR data reveals that agency’s staff number has increased to 8,436 with additional employment of 3,923 job and vocational counsellors and the registered unemployed per staff has decreased to 270. Compared with 21 EU countries, it still provides services with approximately 4 times less staff. Considerable increase in active and passive policies conducted since 2009 has also increased İŞKUR’s workload in the way that cannot be compared to the past.

66. It is seen that Provincial Employment and Vocational Education and Training Boards (PEVET) which are the responsible bodies at the local in identifying local active labour market measures have not had adequate awareness. Provincial Directorate of Labour and Employment, Governorship, Provincial Directorate of Education and Provincial Directorate of Trade and Industry participate over 90 percent held in 81 provinces (in 383 meetings) while Provincial Special Administration, Confederation of People with Disabilities, universities and Provincial Offices of Tradesmen and Craftsmen participate around 80-90 percent. Municipalities’ participation is lower than 80 percent. However, the participation of the employers and employee trade unions participate around 70 percent, it is lower for provincial chamber of industry/commerce with 72 percent.

67. Another lacking point of the programs designed for making labour force more qualified for the labour market in a quick way is that there is no impact assessment of the programs and an efficient monitoring and evaluation system.

68. The people also need to be trained not only through the training given in the schools but also for developing themselves in order to adapt to the technological innovations and stay in the labour market. However, participation in the lifelong learning (LLL) comparing to EU countries is inadequate in Turkey. The LLL participation rates in Turkey are based on figures which cover only the figures of non-formal trainings provided by the Ministry of National Education (MoNE). Therefore, the data collected are far away reflecting the situation. Keeping this in mind, the Table-3 provides participation in LLL in Turkey with a gender breakdown in a comparison with EU, Eurozone. More reliable figures will be available following the incorporation of all LLL data related to the activities carried out by all public institutions particularly İŞKUR, local administrations, universities, civil society organisations (CSO) into the e-nonformal training portal of MoNE. 24 Strengthening Links Between Education and Employment Table 3: Lifelong Learning Participation Rate (%) Male Female Total 2006 2011 2006 2011 2006 2011 EU27 8,4 8,2 10,1 9,6 9,3 8,9 Turkey 2,1 3,0 1,5 2,7 1,8 2,9 Source: Eurostat

69. The lack of a reliable common database for monitoring the transition from school to employment makes it difficult to measure the effectiveness and efficiency of the education and training programs. For this reason, it is important to establish a monitoring and evaluation system integrated to the social security system. B. Overall Objective It is aimed to improve education and training system in meeting the needs of the labour market and to enhance employability for all based upon LLL programs. C. Targets

1. National occupational standards defined in line with priorities of the labour market and National Qualifications Framework in line with the European Qualification Framework will be prepared until the end of 2014.

2. The number of İŞKUR staff which is 8.436 as of 2013 will be12.000 by the year 2015.

3. Starting from 2014, 400.000 people per year will be given labour force training course under ALMPs.

4. Job placement rate of the people completing labour force training course will be 40 per- cent by 2015.

5. LLL participation rate will be 15 percent by 2023.

6. All occupational standards and qualifications which business world requires will be pre- pared by the year 2023. D. Policies

1. Basic skills and competences will be given to all starting from pre-schooling in an accessible education and training system. 2. The quality and efficiency of the general and VET system will be enhanced. 3. Open learning environments will be established under LLL and life-long learning will be encouraged

4. A stronger link will be established between education and labour market. 5. ALMPs will be prevalent and their efficiency will be enhanced.

6. Project based innovation and entrepreneurship will be supported through education system and ALMPs. www.uis.gov.tr 25 Main Policy Pillars II. ENSURING SECURITY AND FLEXIBILITY IN THE LABOUR MARKET A. Current Situation

70. Structural transition of the global economy lies behind the policies towards flexible labour markets which are on the agenda of developed and developing countries. Fordist production model which included the mass production of standard goods, production driven demand, stable employment relations, decisive collective bargaining, and standard works for workers until the 1970’s left its place to Post-Fordist production model which relies on the flexibility of production, sales and employment processes. Post-Fordist model of production which includes small-scale production of a variety of goods, demand driven production, smaller enterprises and factories, more flexible and less secure employment, diversified labour relations, more important local or individual level wage bargaining, a qualified and heterogeneous labour force for different works has gained importance

71. In addition to adapting to the ever changing economic conditions with the rapid change of information technologies and increase in global competition, flexible labour market policy is the top priority of many countries around the world in order to improve the domestic and international competitiveness of enterprises and solve the almost chronic unemployment problems.

72. Flexibility of the labour market means harmonization of enterprises to the changes and fluctuations in the economy and production cycle and the speed and size of the employees’ capability to balance work and life in line with necessities which changes along with their life cycle. This harmonization may be achieved by means of organizing working conditions in line with the priorities and necessities of employers and employees with legal instruments and also utilizing collective agreements or work contracts. From the point of sustainable growth, the importance of flexibility which has an important effect on the competitiveness and efficiency of enterprises is obvious in the Turkish labour market which has widespread unregistered employment and high levels of youth unemployment. On the other hand, security of employees and social protection floor must be handled with the same sensibility as the flexible labour market. Legislative arrangements which form a basis for the redefinition of the roles of employers and employees on the basis of flexibility-security balance and for the actualization flexible labour models are necessary for employment-generating growth.

73. Flexibility of labour markets changes the employment conditions and results in precarity for employees and the adoption of the “flexicurity” approach by many countries especially in the EU countries. Flexicurity approach anticipates a labour market where flexibility and security may be provided simultaneously. Flexible labour market aims at improving the adaptation capacity of enterprises to competition and changing conditions and also aims at the employment and income security of those in the labour market. “Employment security” which means the protection of employment and maintaining work without depending on one single employer gained importance instead of “job security” which means the protection of 26 Ensuring Security and Flexibility in the Labour Market work and security of maintaining the same job. Increasing the employability of job seekers of active labour market programmes and even the employed is important to provide employment security. Income security aims at protecting the income level of the unemployed by social insurance and social assistance.

74. Flexicurity became a priority of EU policies in 2000 after successful practices of Denmark and the Netherlands. In this context, contrary to the hypothesis which claims that more flexible labour markets means less security, security and flexibility may be improved in a balanced manner both for the employers and the employees with appropriate policies. EU flexicurity strategy states four fundamental policies including flexible work arrangements, active labour market policies, and lifelong learning and social security systems for a successful flexicurity practice.

75. In order to ensure a thorough flexicurity policy, managing social dialogue mechanisms properly has upmost importance. Each country may constitute a unique flexicurity model considering its own characteristics since labour market and welfare state practices differ in every country.

76. Turkey is a country where flexible work is not practiced broadly, unemployment and unregistered work numbers are high, individuals utilizing unemployment benefits are limited, active labour market policies are relatively insufficient in terms of flexibility and security indicators compared to EU countries. The labour market is fragmented since there are huge differences between registered employees without flexibility and unregistered employees without security. In this context, it is possible to say that flexibility-security balance has not been provided in Turkey yet. On the other hand, shrinking in unregistered employment and improvements in the social security system and active labour market programmes are important steps towards ensuring that balance.

77. Social security system is an important policy component to provide flexibility-security balance. Increasing registered employment and preventing social security premium losses with social security policies among flexible workers relies on a system which includes flexible work arrangements.

78. Flexible work arrangements introduced with Labour Law No 4857 are also included in Social Insurance and Universal Health Insurance Law No 5510 (Article 4, 5,41, 80, 88, Additional Article 6, Provisional Article 12.). On the other hand, social security coverage of flexible working employees are relatively low. Flexible employees prefer unregistered work since they cannot fulfill the requirements to qualify for income/benefit/pension as the current system requires a payment of daily premiums on the principle of “full time and permanent work” in order to benefit the social security coverage.

79. Voluntary insurance is considered as an important alternative for flexible employees but it is criticized since the only determinant for employees to benefit from social security privileges is their own ability to pay premiums. It is necessary to ensure that social security system is operational with regulations and practices to promote registered employment for flexible employees. www.uis.gov.tr 27 Main Policy Pillars

80. Flexible work arrangements are one of the most important components of flexicurity. Various flexible work arrangements are widely practiced especially in developed countries. Part time work, fixed term work, temporary work via private employment agencies, remote work, on- call work, homework, work share and flexible work time model are among the most common flexible work practices.

81. Part time work is the earliest and most widespread practice of flexible work. Part time work is the type of work that requires less time than full time work as stated in Article 13 of Law No 4857. 30 hours or less is considered part time work in Turkey, whereas it is less than 35 in the USA, less than 30 in Canada and England and less than 36 in Germany. Part time work among employees is 19,9 percent in EU countries in 2012 according to EUROSTAT data. Netherlands (49,8 percent), Sweden (26,5 percent), Germany (27,2 percent) and England (27,2 percent) are among the countries that practice part time work widely. Part time work ratio is 12 percent in Turkey but unpaid family workers constitute a big share in this number.

82. Fixed term work is the type of flexible work to accomplish a specific task or fixed term work or practice if a specific task arises as stated in Article 11 of Law No 4857. Fixed term work among employees is 14,1 percent in EU-27 countries in 2011 according to EUROSTAT data. Poland (26,9 percent), Spain (25.3 percent), Portugal (22,2 percent) and Netherlands (18,4 percent) are among the countries that practice fixed term work widely. Fixed term work ratio is 12,2 percent in Turkey.

83. Sub-contracting is another flexible work practice which enables employers to carry out the production of goods or services in their workplaces by means of the employees of another employer and which provides flexibility by externalizing employment as stated in Article 2 of Law No 4857. Problems in the employer, sub-contractor and employee triangle resulting from Labour Law are increasing due to the widespread practice of sub-contracting. Sub- contracting practice must be re-regulated in a manner which eliminates the negative aspects for employee and employers but contributes to maintaining the functional practice of sub- contracting.

84. Temporary work is another important flexible work practice which carried out through private employment agencies. Private employment agencies assign their own employees to other enterprises for temporary work. The work arrangement between the employee, the private employment agency which employs the employee as the employer and the enterprise which operates and instructs the employee is called a “triple work relation”. In the last 20 years, number of individuals working in this context has risen especially in Europe. According to European Confederation of Private Employment Agencies (Eurociett) data, approximately 12.4 million people worked in this context in 2011. The ratio of temporary employees who work via private employment agencies is 1,6 percent according to 2011 data.

85. Considering the number and characteristics of office employees, a report of European Foundation for the Improvement of Living and Working Conditions in 2009 states that temporary work via private employment agencies is widespread in EU member states and especially in Belgium, France, Germany, Italy, Netherlands, Spain and UK. Individuals under 28 Ensuring Security and Flexibility in the Labour Market 30 constitute the majority among office employees. However, education analyzes state that most of them have low or mid-level education. Temporary workers of private employment agencies work mostly in the service sector in many countries.

86. Temporary work relations via private employment agencies are regulated with legislation in many EU countries. Since the 1960’s, there are two approaches to regulate temporary work in many EU countries which has regulated this field in order to reach a consensus among social partners. First of these two is “the equal treatment principle” which drafts regulations clearly and explicitly and the second is to bring certain limitations to temporary work relation in order to prevent the exploitation of employees. The basic principle of EU Directive 2008/104/ EC which was drafted to secure the rights of temporary workers of private employment agencies is to ensure the equal treatment principle as a requirement of flexicurity.

87. Temporary work via private employment agencies is considered as an important mechanism for meeting the short-term labour requirements that enterprises may face for various reasons. On the other hand, this mechanism will improve the employability of certain groups such as women, young and long-term unemployed who face lack of experience barriers for accessing employment and will improve the employment opportunity and working conditions of those who prefer temporary employment for various reasons.

88. Temporary work relations via private employment agencies are not regulated in Turkish national legislation. However, Article 7 titled “Temporary Work Relation” of Law No 4857 enables a unique and limited temporary work model.

89. Remote work is a type of flexible work using information technologies to work out of the workplace. This type of work is not regulated in national legislation and it is rapidly spreading in especially developed countries since the 1980’s in parallel with the advance in information technologies. Remote work in EU-27 as of 2005 is 7 percent. Remote work is expected to become much more widespread as it is an important flexible work type and is crucial for work-life balance.

90. On-call work, as regulated in Article 14 of Law No 4857, is especially widely practiced in hospitals, hotels, restaurants and journalism enterprises when there is an increase in demand. On-call work in EU-15 is 1,4 percent in 2011 according to EUROSTAT data. This type of work pattern is not common in Turkey.

91. Homeworking is a work relation based on a written contract in which the employee produces goods or services specified by the employer and is affiliated with one or more employers but without the supervision of the employer and generally in their own house. Even though homeworking is regulated in Articles 461-469 of Turkish Code of Obligations No 6098, Law No 4857 does not regulate any aspect of the model.

92. Work sharing is a type of flexible work which reduces work hours among two or more employees and maintains production to reduce dismissals especially in time of crisis. This is a way of working where a certain number of employees share one full-time job, dividing the daily and weekly working hours, pay and other benefits among them proportionate to the www.uis.gov.tr 29 Main Policy Pillars hours each works. It is not regulated in national legislation. Germany and UK are among the most successful countries in this context.

93. Flexible time model is a model providing flexibility in start and end of work hours in a limit determined by the enterprise management. Flexible work time model is spreading in EU countries and it is an important flexibility model especially for work-life balance.

94. There are certain regulations towards increasing the flexibility of labour markets in Law No 4857 which entered into force in 2003. Flexible work types envisaged in the law is not practiced widely.

95. Main challenges prevent widespread practice of the flexible work types in Turkey are as follows: a. High level of unregistered employment and illegal overtime work in practice reduces the practice of flexible work. Unregistered employment in agriculture sector is 52,7 percent and 47,3 percent in non-agricultural sector according to TURKSTAT 2012 data. According to EUROSTAT 2012 data, active weekly working hours in Turkey is 48,8 hours in practice. Turkey is way above the average 37,3 hours of EU-27. b. Despite that Law No 5510 & 6111 has certain provisions, social security legislation still doesn’t have sufficient regulations towards flexible work therefore flexible employees avoid registered employment. c. It is not possible to carry out fixed-term contracts in succession which are among of the most important means of flexible work, if there is no essential legislative reason to do so. This prevents the widespread practice of fixed-term work. d. The lack of legislation for temporary work via private employment offices is a major gap for meeting the short term labour demand of enterprises, integration of the unemployed especially the vulnerable groups in labour market and reducing unemployment. e. The lack of sufficient data on flexible work practices is among the major obstacles for creating accurate policies and disseminating the practice.

96. Registered labour market in Turkey is quite strict since there is no legislation for certain types of flexible work and existing work practices are not widespread because of the reasons mentioned above. Employment Protection Legislation Index of OECD (Figure 1) which sheds light on the labour market flexibility in world confirms this assumption. Turkey is the strictest country among 40 countries (30 of them being OECD members) in accordance with this index of 2008. 30 Ensuring Security and Flexibility in the Labour Market Figure 1: Index of the Legislation on Employment Protection within the Member Countries of OECD and Other Countries* Source: OECD *Scale is between 0 and 6. 0 is the most flexible and 6 is the least flexible situation regarding the legislation.

97. Turkey is the country with the strictest legislation in terms of temporary employment arrangements in accordance with the index which was drafted taking dismissals of permanent employees, collective dismissals and temporary employment arrangements into account. The lack of legislative arrangements for temporary work via private employment agencies, requirements of fixed-term contracts, duration and amount limitations are among the reasons of this strictness.

98. Turkey has more flexible regulations than OECD countries in regards of the Specific Requirements for Collective Dismissals Sub-Index which includes the definition of collective dismissal, additional notice terms, additional extensions before the start of the notice time and other expenses undertaken by the employer.

99. Turkey is the 14th strictest country among 40 countries in regards of the Individual Dismissal of Workers with Regular Contracts Sub-Index which includes the notice process, severance and notice payment, definition of fair and unfair dismissals, trial period, unfair dismissal compensation and maximum period of objection. Especially the high level of severance payments increases the strictness of the labour market.

100. In regards of employment criteria, Turkey ranks 145th out of 183 countries in the Ease of Doing Business Report 2010 of the World Bank. Limitations on fixed term contracts and the high level of severance payments appear to be among the reasons of this strictness in this report as well.

101. According to severance payment data which is used to draft the Employment Protection Legislation Index Turkey and Portugal are the two countries in OECD where the highest levels of severance payments are mandatory. In addition, Turkey is among the top 20 countries with highest severance payments according to Ease of Doing Business Report mentioned above. www.uis.gov.tr 31 Main Policy Pillars

102. The high level of severance payments is an important expense for enterprises. Enterprises resort to unregistered employment to avoid this burden or may opt for illegal ways to prevent employees to qualify for severance payments. As a result, there are important levels of efficiency losses in enterprises.

103. Access to severance payment levels for employees is extremely insufficient. Inability to transfer severance payments between enterprises limits the mobility of labour force. In practice, employees who prefer to change jobs occasionally cannot leave their jobs in order to maintain their severance payments or they cancel their contracts and lose their severance payments. B. Overall Objective It is aimed to improve the economic and social rights and employability of employees by increasing the flexibility of labour market and by protecting the acquired rights of the employees. C. Targets

1. The ratio of part time work over total employment will rise to EU levels by the end of the strategy in 2023.

2. Worker Employment Index which is 0.64 for Turkey and is included in the Ease of Doing Business Index will be carried to OECD averages in 2023.

3. Trade union rights and social security conditions of flexible employees will be improved. D. Policies 1. Applicability of flexible work arrangements which does not have sufficient implementation despite legal arrangements will be improved. 2. New legislation will be drafted for flexible work arrangements which are not regulated.

3. Awareness level of employees and employers relating to flexible work arrangements will be increased. 4. Minimum wage will be regulated in accordance with economic conditions and ratified international agreements. 5. Accessibility of flexible employees to economic and social rights will be increased. 6. Employability of flexible employees will be increased by means of using active labour market measures.

7. Severance payments will be reformed by ensuring the accessibility of all employees.

8. Right of information and codetermination of employees will be ensured. 9. Measures against excessive work will be taken.

10. Strengthening and extending the guidance role of inspection activities will increase deterrence and reduce unregistered employment and secure the rights of flexible employees. 32 Increasing the Employment of Vulnerable Groups III. INCREASING THE EMPLOYMENT OF VULNERABLE GROUPS A. Current Sıtuatıon

104. Vulnerable groups especially women, youth, long term unemployed and disabled have low labour force participation rates, work in unregistered and underpaying jobs called “indecent work” and face a higher risk of unemployment despite positive discrimination and no legal obstacles. This situation rising up in almost every country has been challenged by various policies.

105. Turkey adopted many regulations since 2008 in order to increase women and youth employment. Insurance premium incentives which were adopted with Law No 5763 on Amendments on Labour Law and on Some Laws and Law No 6111 provided to employers who employ women and youth has contributed to employment rates and registered employment of these groups but has not managed to raise the employment level to desired levels.

106. Labour force participation rate of women in Turkey is 29,5 percent in 2012 and that is very low compared to men. Considering the sectoral distribution of labour of women, they are primarily employed in the service sector and then in the agriculture sector. Agricultural disengagement and migration from rural to urban areas resulted in women who previously worked as unpaid family workers withdrawing from the labour force, becoming unemployed or working in jobs with no social security and low levels of wages. Also, jobs and occupations are separated and socially accepted as “woman jobs” and “man jobs” in the labour market, women employment concentrate in jobs traditionally dominated by women and this prevents women to access other fields which are relatively better paying and have social security.

107. Unregistered employment rate of women is considerably higher than of men but it is decreasing in recent years. This rate has decreased to 54,2 percent in 2012 from 71,3 percent in 2003. Agricultural disengagement has an important contribution to this regression. 108. 12,1 percent of women in labour in 2012 are self-employed or work as employees and 33,7 percent of them work as unpaid family workers. An important percentage of women still work as unpaid family workers despite an increase in the paid women employment.

109. Active participation of women to work life is an important requirement both for personal and social progress. However, insufficient education and vocational education and training (VET) of women, providing courses only in fields which are socially accepted as women jobs in VET and gender discrimination practices in the labour market reduces the labour force participation of women in Turkey and increases unregistered work and unemployment rates.

110. The low labour force participation rate of women may be affiliated with the low level of education. In accordance with 2012 TURKSTAT data, labour force participation of illiterate www.uis.gov.tr 33 Main Policy Pillars women is 16,7 percent while it is 70,9 percent for tertiary education graduates. This situation states that the education level and labour force participation of women are directly related to each other. It is important to raise the level of education of women.

111. Besides the low level of education, social gender roles which burden the men with the responsibility of work and the women with the responsibility of homework and provision of care to children, elderly and disabled persons are among the reasons of the labour force participation and employment rates of women. Improving and extending institutional support mechanisms of care services are important for increasing the labour force participation rate of women.

112. Among with the low level of labour force participation of women in Turkey, the high level of unemployment rate reveals a negative picture in regards to OECD and EU countries.

113. Labour force participation rate of youth (15-24) is 38,2 percent in accordance with 2012 TURKSTAT data. This rate is 50,8 percent for young men and 25,9 percent for young women. Youth unemployed constitute 30,8 percent and first time job seekers constitute 61,8 percent of the total unemployment. Limited possibilities for internships and inability to obtain necessary skills required by employers in education life, it is hard for youth who are in the process of adapting to the labour markets to find jobs. Therefore youth unemployment rate (17,5 percent) is higher than total unemployment rate (9,2 percent). Policies towards first time job seekers will improve the employability of youth.

114. A TURKSTAT study titled “Research on the Labour Force Status of Disabled People” states that labour force participation rate is 50,5 percent but it is 40 percent for those with an ongoing illness or health condition and it is 34,8 percent for the disabled for the second half of 2011. Unemployment rate for the same groups is 8,1 percent and 7,6 percent. Labour force participation rate of disabled men is over 30 percent while it drops to 7 percent for disabled women. The disadvantaged position of women is much more serious in regards of disabled women.

115. The situation of the long term unemployed (those who are unemployed for one year or more) gives significant clues on the structure of unemployment. According to TURKSTAT data, the ratio of long term unemployed to total unemployed is 26,4 percent in 2011 and 24,9 percent in 2012 in Turkey. As the duration of unemployment increases, the probability of personal skills to meet the demands of the labour market, expectations to find a job and the employers’ tendency to employ the long term unemployed reduces. For these reasons, unemployment becomes chronic and decreasing the unemployment rate becomes difficult.

116. Each vulnerable group, including women, youth, disabled and long term unemployed, face its own problems for entry into labour market and in the labour market. Main problems for these groups are relatively low level of education and skills, insufficient adaptation of flexible work in legislation and work life, social gender roles for women, insufficient mechanisms for work-life balance, entry into first job problems for youth and current social living spaces limiting the mobility of the disabled. 34 Increasing the Employment of Vulnerable Groups

117. Public institutions and agencies which serve vulnerable groups have been unified in the Ministry of Family and Social Policy (MoFSP) in order to speed up the activities for improving the legislation and increasing employment. B. Overall Objective It is aimed to eliminate the barriers for labour force and employment participation of vulnerable groups such as women, disabled, youth and long term unemployed. C. Targets

1. Labour force participation rate of women will increase to 41 percent until 2023.

2. From 2012 to 2023, the unregistered employment of women will be reduced from 54,2 percent to 30 percent.

3. Youth employment rate will be close to total unemployment rate.

4. All of the vacant positions for the disabled (by 2013: 22.302 in public sector, 28.864 in private sector) will be filled until 2015.

5. From 2012 to 2023, the ratio of the long term unemployed will be decreased from 24,9 percent to 15 percent. D. Policies

1. Labour force participation and employment rate of women will be increased and unregistered employment will be tackled. 2. Youth unemployment will be reduced.

3. Labour force participation and employment rate of the disabled will be increased.

4. Return to work process of the long term unemployed will be accelerated.

5. Regulations on anti-discrimination will be improved. www.uis.gov.tr 35 Main Policy Pillars IV. STRENGTHENING LINKS BETWEEN EMPLOYMENT AND SOCIAL PROTECTION A. Current Situation

118. In Turkey, due to low level of labour force participation and registered employment, a significant proportion of population in working age is excluded from social insurance system and this increases the number of people in need of social assistances.

119. Long term unemployed in the labour market and those facing high risk of unemployment increase the need for social protection.

120. In Turkey, employment in rural areas is mostly in agriculture sector where added value per capita is low. Thus, 24,5 percent of employment was in agriculture sector in 2012, the share of this sector in GDP was only 8,1 percent. It is the most important fact that leads to high poverty in rural areas. Besides, most of the population dissolved from agriculture are excluded from the labour market or work with low wages temporarily and without security as their qualifications are not adequate for jobs in urban areas. Imbalance between share of agriculture in employment and agricultural share in distribution of income, and the labour force situation of population dissolved from agriculture in urban areas increases the need for social protection both in rural and urban areas.

121. According to the TURKSTAT 2012 data, the poverty rate is 16,2 percent with regard to poverty threshold determined by taking into consideration 50 percent of the equivalised household disposable median income. Although a significant number of employable population among poor is employed, those people are working in temporary and precarious jobs with low wages due to both low level of their qualifications and characteristics of agriculture sector where they mostly work and marginal sectors in urban areas. Poverty risk is high for unregistered workers as well as for households with children where especially minimum income is the only source of income. Therefore, within the scope of social insurance, the need for social protection increases for poor people especially working with minimum income or unregistered. Besides, social assistances mostly provided for those who do not have social insurance record and this might both be dissuading for people to work registered and cause people working registered but in need to receive less social assistance.

122. Unemployment benefit is determined as 40 percent of gross earning not to be over 80 percent of gross minimum wage. In 2010, 330.000 unemployed out of 3.046.000 (10,8 percent) received unemployment benefit. This was determined as 365.719 unemployed in 2012, and as 164.467 for 2013 January-July period. The need for social protection increases due to strict conditions for entitlement and low level of benefits. This shows that unemployment insurance cannot ensure adequate protection for unemployed by itself.

123. Unlike in Turkey, where social protection schemes are inadequate due to lack of an institutional framework for unemployment benefits, in many countries, the unemployment 36 Strengthening Links Between Employment and Social Protection benefits are funded through general taxation scheme for the unemployed persons who are not within the scope of unemployment insurance or who are ineligible to claim it because of the expiry of the benefit period or who have never been qualified for it because of not working long enough to meet the necessary premium payment requirements.

124. Projects to make employable poor people more productive and ensure sustainable income for them are supported and towards “Action Plan on Establishing and Activating the Link between Social Assistance System and Employment” put into practice in 2010, efforts continue to ensure accessing labour market for employable people benefiting from social assistances. However, the need for strengthening and activating the link between social assistances and employment remains.

125. Lack of communication and cooperation among the institutions working in the field of social assistances in Turkey and lack of objective criteria makes it difficult to deliver efficient and adequate services for people really in need and to use the resources in an efficient and productive way. In 2011, Ministry of Family and Social Policies was established in order to better coordinate social assistances and social services. “Integrated Social Assistance Services Project” is carried out by DG for Social Assistances affiliated to the Ministry and duplication in assistances is prevented via Social Assistance Information System (SOYBIS). In addition, the system established by “Project on Development of Scoring Formulation for Determination of Social Assistance Receivers” which was carried out in order to define objective criteria in benefiting social assistances and finalised in 2013 can be used by the beginning of 2014.

126. Ratio of social expenditures to GDP in Turkey which was 16,4 percent in 2011 is relatively low compared to EU averages. Besides, effect of social transfers in reduction of poverty is not at the expected level.

127. Although ratio of social assistance expenditures provided by public institutions aiming at reduction of poverty to GDP in Turkey fall behind the EU average, it shows and increasing trend since 2002. This ratio was 0,5 percent in 2002 and increased to 1,4 percent in 2012.

128. “Child labour” which mainly based on poverty and adult unemployment remains to be an important problem despite all efforts for prevention. According to the results of TURKSTAT 2012 Child Labour Force Survey, there are 15.247.000 children in Turkey aged 6-17. Rate of working children at the age group 6-17 is 5,9 percent. About 35 percent of children that dropped out of school are working in economic activities. B. Overall Objective It is aimed to develop an efficient and integrated social protection system in line with the economic, social and financial policies which includes all segments of the society, promotes working and not depends the individuals to social assistances. Child labour, primarily worst forms of child labour (in streets, at heavy and dangerous works in industry, seasonal migrant and temporary agriculture works out of family works) will be eliminated. www.uis.gov.tr 37 Main Policy Pillars C. Targets

1. Ratio of people receiving unemployment benefit to the total unemployed will be increased to 25 percent by 2023 which was 14,5 percent in 201. 2. 31 percent average of 2008, 2009 and 2010 for people who receive unemployment benefit and employed in one year after leaving their jobs will be increased to 40 percent in 2015.

3. In 2023, job and vocational counselling service will be provided to all employable social assistance receivers. 4. 25 percent of employable social assistance receivers will be employed in one year.

5. In 2023, in particular worst forms of child labour in heavy and dangerous industry, streets and seasonal migrant and temporary agriculture will be eliminated; child labour in other fields will be reduced under 2 percent.

6. Rate of working poor will be reduced to 5 percent by 2023. D. Policies 1. Social assistances will be provided as right-based and on the basis of predefined objective criteria. 2. Social protection service will be defined and classified in a way to promote employment according to the needs of people taking into consideration the composition of households. 3. Unemployment insurance will be restructured in a way to provide more social protection. 4. Activities aiming at poor people working unregistered and people at risk of poverty will be increased.

5. Opportunities to benefit from social assistances will be increased taking into consideration the characteristics of the households that are poor or at risk of poverty even if there are registered employees within the household. 6. Social protection programmes implemented by public institutions will be conducted in coordination. 7. “Time Bound Policy and Programme Framework for the Prevention of Child Labour” will be implemented effectively in all provinces.

8. Sustainable income will be ensured for employable poor people through making them more productive. 38 Temel Politika Eksenleri www.uis.gov.tr 39 SECTOR STRATEGIES CHAPTER THREE Sector Strategies 42 Information Technology Sector INFORMATION TECHNOLOGY SECTOR A. Current Situation

129. Information technology sector is one of the most rapidly growing sectors in the world. According to the data of World Bank, as of 2007, information technology expenditures have outreached 1 billion dollars in USA. As regards information technologyexpenditures per capita, Ireland has the highest expenditure with 3.499 dollars. It is 3.421 dollars in USA, 3.063 in UK, 2.500 in Germany and 2.455 in Japan.

130. According to the data on public information technologyinvestments in 2012 Investment Programme, while allocation from central administration budget for information technology investments in 2002 was around 577 million TL with 2012 costs, this amount has approximated to 2.5 billion TL in 2012. Except for 2008, public information technology investments has showed an ever-growing trend and an increase over four times has been noted since 2002. In particular, projects in education sector have an effect on the substantial rise which occurred after 2011. E-State applications and services are put into practice by means of information technology investments done by public institutions.

131. According to OECD Communications Outlook 2011 Report, regarding information technology field, Turkey has performed 7.078 billion dollars of import and 2.032 billion dollars of export in 2009. In this sector where Turkey is one of net import countries, South Korea, Japan, Mexico, Hungary, Ireland, Slovakia and Israel are the main net export countries.

132. According to OECD Information Technology Outlook 2010 Report, the ratio of information technology specialists to the general employment in economy is 1,6 percent as of 2010 in Turkey. This ratio is 4 percent in USA, 5,4 percent in Sweden, 3,5 percent in Germany, 3,1 percent in France and approximately 3 percent in Italy.

133. According to the data of OECD Patent Database, the ratio of patents obtained regarding information technology to general number of patents is 48 percent in Singapore, 47 percent in Finland, 26 percent in EU 27, 34 percent for OECD average and 14 percent in Turkey between years of 2007-2009.

134. According to the results of 2011 Research and Development Activities Survey of TURKSTAT, the share of research and development expenditures in GDP was 0,85 percent in 2009, 0,84 percent in 2010 and 0,86 percent in 2011 while it was 0.6 percent in 2006. On the other hand, according to the publication on Higher Education Data of Assessment, Selection and Placement Center (ÖSYM), this rate was 26,7 for science and engineering among undergraduate programmes in 2011.

135. According to the data of TURKSTAT, the share of professions where information technology is intensively used to total professions is 10,8 percent in Turkey.

136. According to the data of TURKSTAT, number of people working in information technology sector is 238.000 as of 2012. www.uis.gov.tr 43 Sector Strategies

137. Skills gained with formal education in information technology sector do not match with the labour force needs of the sector. In information technology sector which requires high qualification and has a strategic importance, employment will significantly increase both in production process and support services after production in case of needs met by means of supporting the national resources. In this process, it is especially important for Turkey to develop specific sector software.

138. According to the data of ÖSYM, there are 3.184 graduates in total from undergraduate programmes for computer, control and computer, computer software, information technology systems and technologies, computer technologies and information technology systems in 2011-2012 term. Number of graduate students from two-year degree programmes is 15.619 for the same period.

139. Although it has a trend for rapid growth, information technology sector has not developed sufficiently in Turkey. There is not adequate investment in this field, and policies defined cannot be put into practice in coordination among different public institutions. In particular, information technology sector is considerably small when compared to OECD. Software, services and content are relatively inadequate in the sector.

140. In 2012, 12.287 people in total, 6.307 of whom were men and 5.980 of whom were women, have participated in 998 trainings provided by İŞKUR regarding the sector. Sectoral Committee for information technology authorized by VQA regarding the professions in information technology sector is continuing its efforts for preparation of occupational standards with participation of institutions working in the sector.

141. The primary challenges are that the sector is not fully open to competition and the inventory of the sector is not yet taken.

142. Its multiplier effect on employment in other sectors can be regarded as a special characteristic of employment in information technology sector. Although it can be thought that the developments in information technology sector will cause employment loss in traditional professions in short term, an increase in total employment shall be expected in long-term.

143. In order to increase trade of foreign exchange saving services in Turkey and to improve competitiveness of services sectors at international level, Notification No. 2012/4 regulating the Support for the Trade of Foreign Exchange Saving Services has been drafted and it has entered into force by publication of Official Journal dated 25.06.2012 and numbered

28334. Within the scope of the Notification implemented by Ministry of Economy, accession to foreign markets and advertising activities of software companies, companies developing computer games and applications that are functioning in information technology sector, and technocities and sectoral cooperation institutions are supported. B. Overall Objective It is aimed that skills of the labour force in the sector will be improved, entrepreneurship will be promoted, and employment in the sector will be increased through supporting the researches on developing new products and technology. 44 Information Technology Sector C. Targets 1. 10.000 information technology specialist will be trained annually.

2. From 2013 to 2023, number of people employed in information and communication sector will be increased by 50 percent. D. Policies 1. Qualification of the labour force will be improved taking into consideration the current needs of the sector. 2. Researches aiming at increasing new products and employment in information technology field will be supported.

3. Incentives aiming at entrepreneurship and export will be increased.

4. Usage of information technologies in the social and cultural field and adaptability to transformation process will be increased. www.uis.gov.tr 45 Sector Strategies FINANCE SECTOR A. Current Situation

144. In order to ensure that the growth is stabilized and sustainable, balanced macro policies that ensure stabilisation, entrepreneurship based on information, well-functioning governance process are utmost importance as well as existence of an effective and reliable finance sector. Global crisis and fluctuations in the finance sector showed that how swiftly and severe national and global economies are affected.

145. In Turkey, the total monetary scale of finance sector is not yet reached to the adequate size when compared to the developed countries. Not being able to ensure long-term stability in the macroeconomic structure is one of the most important reasons that the finance markets in Turkey did not function in a reliable way over the years and is relatively weak compared to markets of the developed countries. Risk premium generated by the unstable structure has created an inefficient finance market which an important proportion of the savings collected by the banks and foreign capital concentrating through a cyclical way is transferred to high- yield internal state debt instruments and which its problems are deepening gradually due to the need for high borrowing in the public sector. Until recent years, this structure did not enable development of other finance institutions which will contribute financing and deepening of insurance sector or commerce where particularly the long term stabilisation is at vital importance. Macroeconomic stability reached in recent years has resulted in a positive change in this view.

146. Despite the aforementioned positive developments, data on banking that is sub-sector with the most important size in Turkey in the sector is far away from being adequate when compared to EU averages. Although size of assets per capita has an increasing trend, it is below average with around 7.500 euros. Despite the consistent growth and increase in loan supply in the period of 2002-2008, banking system in Turkey is rather at a micro-scale when compared to EU states. Taking into consideration the ratio of size of assets to national income, the difference between EU 27 and Turkey is nearly threefold. According to data of the Banks Association of Turkey (TBB), the ratio of size of assets in Turkish banking sector/GDP was 97 percent in

2012. This ratio considerably falls behind the ratio of EU 2011 average which was 367 percent. This situation is reflected to the employment data in a similar way. Data on the number of banks, branches and staff in proportion to population supports this determination and points out that the sector has not reached to an adequate size.

147. When the growth potential is used properly, it will have crucial contributions to employment both at sectoral level and in general. Project on Istanbul Regional and Global Finance Center when it is put into practice will have curial impact in increasing the potential growth. Growth and effective functioning of finance sector is an important factor that directly effects the economic growth and employment. From the employment point of view, reliable functioning 46 Finance Sector and development of finance sector is not only limited with its effect on employment in this sector but also having a dimension that indirectly affects the total employment level of the economy.

148. Banking sector creates most of the employment in the sector. Insurance and security brokerage institutions are the other activity fields that highly create jobs. According to the March 2013 data of BDDK, approximately 205.000 people are employed in the Turkish banking sector including the participation banks. According to the 2012 year-end data of Insurance Association of Turkey, the number of people employed in the field of insurance and reassurance is nearly 17.000. Finance sector from the employment point of view is important both because of growth potential of the sector and its high contribution level to total employment indirectly.

149. In addition to its potential of creating jobs indirectly, another aspect increasing the importance of employment in the sector is the high share of women employment in the sectoral employment. The share of women in employment in banking and insurance sectors is about 50 percent according to the 2012 data of TBB. This rate is relatively high when compared to other sectors. Another aspect that increases importance of the mentioned employment level is that women employed in this sector are mostly registered. On the other hand, departments that do not require multiple physical activation, such as call centers functioning especially in the sector, are providing appropriate environment to increase employment of people with disabilities. Accordingly, it can be envisaged that the employment increase in the sector will affect the composition of employment based on gender and employment of disadvantaged persons positively.

150. Skilled labour force is mostly employed in the sector. The rate of higher education graduates among the employees of the sector is relatively high. According to the December 2012 data of TBB and Insurance Association of Turkey, 80 percent of employees in banks, 70 percent of employees in insurance sector have graduated from higher education or postgraduate programmes. When the process of sectoral employment is taken into consideration, it is observed that these rates are rapidly changing in favour of higher education graduates. Although the finance sector has provided job opportunities mostly for graduates of faculties of economics and administrative sciences in the past, this situation has started to be spread out to a wider range in recent years. In the following years, it is estimated that this trend of wider range will continue, and the share of especially some engineering branches due to vital importance of technology and IT infrastructure in addition to 4 years banking and insurance higher education schools and similar faculties in labour force of the sector will more rapidly increase.

151. An important challenge for those who are employed in the sector for the first time is that even those who have graduated from the relevant programme do not have adequate knowledge in implementation at the first stage. Deficiencies on implementation within the process of education have to be eliminated. www.uis.gov.tr 47 Sector Strategies B. Overall Objective It is aimed that qualified labour force demand in the sector will be met and current employment opportunities will be improved. C. Targets

1. From 2013 to 2023, employment in banking sector will be increased by 28 percent.

2. From 2013 to 2015, employment rate of people with disabilities in the sector will be increased by 10 percent. D. Policies 1. Current employment opportunities in the sector will be improved. 2. Training programmes will be updated according to needs of the sector. 3. Labour force demand aiming the needs of sector will be met. 48 Construction Sector CONSTRUCTION SECTOR A. Current Situation

152. Having the ability to influence around 200 sub-sectors, construction sector is an extremely important sector for country economies in terms of employment and value added.

153. With about 7.5 trillion dollars of production, the contribution of the construction industry to the world’s GDP was 13,4 percent in 2012. In this sector, the three leading countries – China, USA and Japan – account for 37 percent of global construction. In 2010, Chinese construction market became the largest construction market worldwide with around 15 percent share. In 2010, housing sector represented almost 40 percent of the global construction production where infrastructure works accounted for about 32 percent.

154. Approximately 20 percent of sector’s share in world economy is being produced in Europe. In this sector, the average cost per employee per year across Europe is approximately 30 thousand Euros. Construction accounts for well over 10 percent of European GNP and employs 12 million people. The index of production for the construction in EU Euro zone decreased by 6,7 percent in 2009 compared to the previous year, and the contraction continued by 7,2 percent, 0,7 percent and 7,1 percent for the years 2010, 2011 and 2012, respectively.

155. While the construction made a considerable progress in the early 1980s and grew constantly for a decade, the sector contracted because of the reduction in infrastructure investments. Shrinking by 22,4 percent, construction was the only major sector contracted during the 1993-2003 period where the economy grew by 26,1 percent in total. The sector shrank consistently and affected deeply by the crisis during this period because of not adapting itself to the changes in economy and demand. The construction sector in Turkey experienced a fluctuating growth trend with falls and rises during the period of 2002-2007 mainly due to the boom in housing demand and with the start of some infrastructure projects. However, with the fall of housing demand in the second half of 2006, growth rate in the sector regressed to 5,7 percent in 2007 with the lowest of the previous five years and shrank by 8,1 percent in

2008. While sector’s growth rate was -16,1 percent in 2009, it was 11,2 percent in 2011 and 2,4 percent in 2012. While sector’s share in GDP was 3,8 percent in 2009, it was 4,2 percent in 2010, 4,5 percent in 2011 and 5,8 percent in 2012.

156. Turkish constructing services abroad have a significant share in Turkish construction sector. As of 2006, the international business volume of Turkish constructors in 63 countries reached to some 85 billion dollars and the number of projects undertaken reached to 6.000. Thanks to the growth of the sector during the period of 2002-2007, particularly due to the growth by 18 percent in 2006, Turkish construction sector increased its share in the world construction sector to around -3 percent. In 2008, Turkey ranked second after China with 23 companies among the world’s top international constructors list and kept its position with 31 companies in 2009, 33 companies in 2010, 31 companies in 2011 and with 33 companies in 2012.

157. Sector’s share in the total employment for years increased from 4,9 percent in 2004 to 5,9 percent in the years of crisis 2008-2009, 6,3 percent in 2010, 7 percent in 2011 and 7,5 percent in 2012. While sector’s share in nonagricultural employment was 6,9 percent in www.uis.gov.tr 49 Sector Strategies 2004, it reached 7,8 percent in 2009, 8,4 percent in 2010 and 9,3 percent in 2011. More satisfactory supply of technical labour, including engineers and architects, has its positive impact on sector’s development.

158. While construction output contracted by 16,4 percent in 2009, it picked up by 18,6 percent in 2010, 11,3 percent in 2011 and 0,7 percent in 2012. For the same period, employment in the sector decreased by 19,5 percent in 2009, and increased by 2,6 percent in 2010, 2,7 percent in 2011 and 1,1 percent in 2012.

159. Sector’s impact on employment is not limited to a net employment increase during construction activity; but it has impact on major sectors – agriculture, industry and services – and sub-sectors before and after the construction activity.

160. Despite the development of construction technologies in terms of production and materials, the labour-intensive mode of production remains dominant in the sector. In the sector the general level of education is relatively low and labour mobility is high. Besides, sector provides temporary jobs for those seeking permanent work. Thus, sector offers employment opportunities for low qualified and poorly educated migrant workers coming from rural to urban areas.

161. Construction is a high-risk sector in terms of occupational health and safety. The sector is classified in the category of heavy and hazardous industries. The sector accounts for 10 percent of the whole occupational accidents where 32 percent of these accidents result in death. B. Overall Objective It is aimed to ensure that sector provides sustainable and registered employment opportunities to labour force which has high adaptability to the changes, high productivity and high level of awareness of occupational health and safety issues through increasing sector’s competitiveness and employment capacity at all skill levels in both domestic and international markets. Targets

1. From 2013 to 2023, the level of employment in construction sector will be increased by 160 percent.

2. By 2023, 30 percent of the employees working in the sector will have a vocational qualification certificate.

3. From 2013 to 2015, occupational accidents in the sector will be decreased by 50 percent.

4. From 2013 to 2023, unregistered employment in the sector will be decreased by 50 percent. Policies 1. Current employment opportunities in the sector will be improved. 2. Measures will be taken for meeting the demand for qualified labour force in sector. 3. Awareness of occupational health and safety in the sector will be promoted. 4. Unregistered employment in the sector will be prevented. 50 Health Sector HEALTH SECTOR A. Current Situation

162. Health sector is an extremely significant sector not only because of the significance of its area of activity but also because of its economic size and employment potential. In parallel with the sectoral developments in the world, the importance of the health sector in Turkish economy and employment has gradually increased. The biggest challenge of the health sector regarding labour market is to increase the employment level through increasing the quality and density of the labour force in line with EU and OECD standards while bearing in mind country’s education capacity and economic limitations. While the measures implemented under the “Transformation in Healthcare Programne” of the Ministry of Health have made considerable contributions in reducing the disparities regarding the regional distribution of health employees, these disparities are not totally eliminated.

163. The share of health sector in total employment has considerably increased in recent years. Despite this, Turkey ranks last among the OECD countries with the share of health sector in total employment which was 2,8 percent in 2009. The reforms on healthcare system are envisaged to ensure the convergence with the OECD average regarding the share of health sector in total employment. In this regard, the upward trend of employment in health sector should continue in an accelerated manner in the medium term.

164. According to 2012 figures of TURKSTAT, 670.092 people employed in the health sector. When it is compared in terms of the density of health employees per capita, it is seen that the number of employees working in the Turkish healthcare sector are lagging far behind the EU and OECD countries. While the number of doctors per 1.000 people in Turkey was 1,7 in 2011, the OECD average is 3,1. Data reveal that the situation is worse for nurse density. Nurse\obstetrician density being 2,4 level in 2011 is far behind the OECD average of 8.4. According to TURKSTAT 2023 population projection, mid-year population is estimated as 84.053.000. Considering that the population has a growing and ageing trend, it is estimated that increasing the number of healthcare institutions and strengthening the capacity of these institutions in terms of human capital will create a significant amount of new employment potential in health sector.

165. Projections about increasing the employment potential of the sector do not only stem from the need for meeting the existing national demand for health services. Unlocking country’s potential in health tourism which covers a comprehensive scope including medical services, thermal and SPA, as well as care services for disabled and elderly persons and supplying the required labour force will help creating considerable amount of employment opportunities. For the developed western countries, importing health services becomes inevitable because of the difficulties in meeting the growing needs of their ageing population. Characteristics of Turkey such as its natural resources, high level of development in the field of medicine and the presence of modern health care institutions paves the way for meeting this need to a certain degree. Besides, within the scope of the Notification No. 2012/4 regulating the Support for the Trade of Foreign Exchange Saving Services, the establishments working in the field of health tourism and their partners in the sector are supported for their activities aiming at access to foreign markets and publicity to bring international patients into Turkey. www.uis.gov.tr 51 Sector Strategies

166. The growth potential of the health sector and its capacity to generate qualified employment makes it important to develop policies aiming at increasing and promoting employment in this sector. Deep scientific researches require constant update of medical knowledge. Thus, in this sector, where a considerable amount of qualified labour is employed, employees are required to continuously improve their knowledge and skills. Accordingly, adoption of lifelong learning approach and measures revising the educational plans in health sector which will help to balance demand and supply of health professionals are very important.

167. In health sector, there is a large area to regulate and manage which includes the reimbursement of medicines and medical devices, allocations to hospitals, reimbursements to individuals etc. Development of the sector inevitably leads to the enlargement and deepening of these areas. Such developments refer to an important labour force demand from both public and private sector, regardless if they are providers or recipients of services, which needs to be handled both in terms of quality and quantity. Ageing population of Turkey and the increase in access to health services and medicine drive the growth of the pharmaceutical industry, therefore, increasing the domestic production and employment within the scope of strategic targets in this field is important.

168. On the basis of the Decision of the Council of Ministers dated. 15.06.2012 and No. 2012\3305, the General Directorate of Incentive Implementation and Foreign Investment provides incentives to health sector for investments on hospitals, medical centers, dialysis centers, laboratories and magnetic imaging centers and production of biotechnical drugs, oncological drugs and blood products, which are subject to prior authorization and permission from the Ministry of Health. B. Overall Objective It is aimed to take measures which will help meeting the growing demand for qualified labour force in parallel with sectoral developments and to improve the present employment conditions. C. Targets

1. From 2013 to 2023, the number of employees working in health sector will be increased 100 percent and convergence with the OECD average will be ensured regarding the share of health sector in total employment.

2. Vocational standards in health sector will be complete by 2015.

3. The number of doctors per 1.000 population will be increased to 2.4 by 2023.

4. The number of practicing nurses per 1.000 population will be increased to the level of 3.8 by 2023. D. Policies 1. Current employment opportunities in sector will be developed. 2. Demand for qualified labour force in sector will be met. 3. Working times and conditions in sector will be reformed. 52 Agriculture Sector AGRICULTURE SECTOR A. Current Situation

169. Agriculture has been an important sector for many countries due to the necessity to meet the increasing and diversifying nourishment demand of the societies and because of its contribution to national income, export, employment, biological diversity, and ecological balance through agriculture based industries. Agricultural production is supposed to steadily increase in the next ten years to meet the increasing per capita consumption as result of rapid population growth, income boost and expansion of trade. Nevertheless, it is predicted that the estimated increase will be slower than the previous years.

170. The expansion in the world agricultural market has been shifting to the developing countries. Lower production costs together with increasing demand in those countries are some of the important factors in this phenomenon. Thus, agriculture sector has a peculiar characteristic since the decreasing ratio of agriculture in employment is accepted as an indicator of transition from agricultural to industrial society according to development level of countries. In line with this understanding, in the developed countries, share of agriculture in employment is low but financial support to agriculture is at significant levels.

171. Even though its place in the Turkish economy has relatively decreased, agriculture still preserves its significance in terms of fulfillment of the domestic food demand, input for the industrial sector, export share and contribution to the employment. Decreasing share of agriculture in GDP stems from relatively rapid development of industry and service sector. Share of agriculture in national income decreased from 26,1 percent to 17,5 percent between 1980 and 1990. Agricultural sector of which share in national income has decreased to 10,1 percent in 2000s,constituted 8,1 percent and 7,9 percent of the national income in 2011 and 2012, respectively.

172. According to TURKSTAT data, share of agriculture in overall employment has a declining trend since 1950s. The ratio decreased from 77,4 percent in 1955 to 47.8 percent in 2000. When the recent periods of agricultural sector has been considered, after having decreased to 23,5 percent in 2007, with the effect of 2008 financial crisis, the share of agriculture in overall employment rose again to 24,7 percent and 25,2 percent in 2009 and 2010, respectively. The number was realised as 25,5 percent in 2011 and 24,6 percent in 2012. The fundamental reasons in the decrease of the share of agriculture in overall employment are the decrease of labour demand depending on the mechanization in agricultural sector, rising labour force demand in industry and service sectors, and narrowing subsistence opportunities in rural areas due to rapid population increase and disintegration of arable land.

173. The most substantial declines in the agriculture sector occurred in 2001 as 7,9 percent and in 2007 as 6,7 percent, which were the years of economic and global climate crisis years. The agriculture sector witnessed 4,3 percent and 3,6 percent growth in 2008 and 2009, which were the years of global financial crisis. The growth trend in agriculture sector continued in 2011 and 2012, with the rates of 6,1 percent and 3,1 percent, respectively. www.uis.gov.tr 53 Sector Strategies

174. The share of agricultural exports including agricultural products, forestry, fisheries and food industry products in overall exports was 10 percent, and its share in total imports was 5 percent. The agricultural exports of 4 billion dollars in 2002 increased to 15,3 billion dollars in 2012. In agricultural imports, on the other hand, the figures rose from 3,9 billion dollars in 2002 to 12,6 billion dollars in 2012.

175. Unlike other activities in which people are generally casual workers or wage earners, agriculture is an activity in which enterprise owners are self-employed and work with other family members. According to 2012 data of TURKSTAT, 42,5 percent of people employed in the agriculture sector are self-employed and 46,3 percent of them contribute to the agricultural activity as unpaid family workers.

176. One of the important features of agricultural employment is the high participation rate of women in the labour force. When Turkey average is considered, 42,4 percent, 42,2 percent and 39,3 percent of the women were employed in agriculture in the years 2010, 2011 and 2012, respectively. 75,9 percent of women employed in agriculture were unpaid family workers in 2010, and the figures were 76,9 percent and 75,1 percent for 2011 and 2012. These figures demonstrate that women are mostly employed as unpaid family workers in agriculture.

177. The existence of unqualified labour force and inadequacy of vocational education; the coverage problem of social security, underdevelopment and infrequency of agriculture based industry in rural areas and high input costs such as of fuel oil and fertilizer can be juxtaposed as weak aspects of agriculture in terms of employment which eventually lead to problems in production.

178. Most common difficulties regarding the child labour in agriculture are attendance in compulsory primary education, compliance to working age standards and implementation of minimum age in working life. According to the results of TURKSTAT surveys, the children employed in agriculture constitute the biggest portion of working children. The 2006 data of TURKSTAT indicate that 36,6 percent of working children (28,6 percent of working boys and 53,3 percent of working girls) are employed in agriculture. The 2012 data of TURKSTAT, on the other hand, shows that 44,7 percent of total working children (38,4 percent of working boys and 58,4 percent of working girls) are employed in the sector. Within the agriculture, “Paid Employment in Mobile and Temporary Agricultural Works except Family Businesses” is defined as one of the worst forms of child labour and identified as one of the primary intervention areas.

179. Agriculture is the sector in which the unregistered employment is most widespread. The share of agricultural sector in unregistered employment was 49,7 percent in 2010, 50,8 percent in 2011 and 52,6 percent in 2012, respectively. When unregistered employment in agriculture sector is considered, ratios correspond to 85,4 percent in 2010, 83,8 percent in 2011 and 83,6 percent in 2012. The share of women in unregistered employment in agriculture is 53,9 percent in 2010, 55 percent in 2011 and 54,1 percent in 2012. 54 Agriculture Sector B. Overall Objective It is aimed that measures will be taken for a controlled transition from agriculture to non- agricultural sectors in the long-run, the qualifications and adaptability of the labour force in the sector will be improved, the registered employment in the sector will be increased by means of incentives, and precautions will be taken for the solution of the structural problems of the seasonal mobile-temporary workers and prevention of child labour. C. Targets

1. Until 2015, waged workers in the agricultural sector will be provided basic vocational and skills training.

2. By means of necessary technical and legal provisions, with the exception of family work in agriculture, paid child labour in mobile and temporary agricultural works will be completely eliminated.

3. From 2012 to 2023, unregistered employment in the agricultural sector will be reduced from 83,6 percent to 50 percent. D. Policies 1. Employment conditions in agriculture will be improved. 2. The education and qualification level of the labour force in agriculture will be increased, and adaptability will be improved.

3. Registered employment in agriculture will be promoted. 4. Child labour in agriculture will be prevented.

5. Working and living conditions of seasonal agricultural workers will be improved. www.uis.gov.tr 55 Sector Strategies TEXTILE AND READY-MADE GARMENT SECTOR A. Current Situation

180. Textile and ready-made garment sector in Turkey has an important share within production, export and employment. Textile and ready-made garment sector together corresponds to 10 percent of Turkey’s GDP. Since it is export oriented, developments in world trade affect the sector closely. According to the Ministry of Economy data, textile export was recognized approximately 11,6 billion dollars, while ready-made garment export as 13,9 billion dollars in

2012. The share of textile and ready-made export in total export is 16,7 percent.

181. Meanwhile textile and ready-made garment export in the world reached to 741 billion dollars in 2012, Turkey is one of the leading textile and ready-made garment exporter in the world, having the share of 3,4 percent. Turkey is under the increasing competition pressure of developing countries which have cheap labour force particularly China. By 2012, the share of China in textile and ready-made garment export reached 33,2 percent in the world. Between 2005 and 2012, the share of Turkey in world textile sector increased by 0,4 percent while the share of China increased by 12,1 percent.

182. The long lasting quotas ended in textile and ready-made garment sector in 2005 were re- launched by EU and USA against China which has a great competition advantage in this sector, however this practice was also ended in 2008. In order to protect the sector from import stemming from asymmetric and unfair competition, additional customs duty has been applied on certain textile and ready-made garment import since September 2011.

183. By 2012, Turkish ready-made garment sector was the seventh leading exporter in the world. Additionally, EU countries are the most important export market in textile and ready-made garment sector of Turkey, with the share of 61,6 percent. Among the countries providing products to the EU market, Turkey came second after China in textile sector and third after China and Bangladesh in the ready-made garment sector in 2012.

184. Production in the sector could be sustained in 2006 and 2007 at almost the same levels as of

2005. However, a higher decline was occurred in the sector production than manufacturing industry production in the years of 2008 and 2009. Ending the quota implementation by EU and the global economic crisis had an impact in this decline. Although a recovery was apparent in production, capacity usage and employment as from 2010, the level of 2007 could still not be reached in 2012. Export in sector, however, showed a better performance and came close to the highest level reached in 2007.

185. Textile is the main sector within export industry contributing to the balance of trade. Despite the trade deficit in the manufacturing industry, 14,1 billion dollars of trade surplus was ensured in the textile and ready-made garment sector. 56 Textile and Ready-Made Garment Sector

186. The increase in textile and ready-made garment sector, due to the positive influence of global competition, fell behind the developments in manufacturing industry in recent years. On the other hand, the level of export and the share of sector in the world show that it has been able to maintain its competitiveness in the foreign market. Import in sector has risen at substantial proportions in recent years. Both the domestic production made densely by imported input and the increase in import of ready-made garment in recent years have been influential regarding that.

187. Textile and ready-made garment sector needs employees with various qualifications. Diversification of sector in numerous sub-sectors such as thread, weaving, finishing, garment leads to the demand for employees having various qualifications and training. The employee qualification needed by big enterprises based on brand and design is different than small scale or contract manufacturing companies. Need for the employees that can adapt to the seasonal and conditionally changing demand has been increasing day by day in the sector which has a flexible production capacity.

188. In 2011, there were 18.500 manufacturer/exporter companies in Turkey which produced for export and 90 percent of them were SMEs. 11.000 of these companies operate in ready- made garment while 7.500 in textile. The number of companies operating in the sector is around 43.000 and approximately 750.000 people are employed in these companies. Registered employment is concentrated on medium-sized enterprises in textile industry and on small enterprises in manufacturing industry. In the Specialization Commission Report on Textile, Leather, Clothing Industry of 9th Development Plan, it is estimated that approximately 2 million people are employed in the sector, 450.000 in textile and 1,5 million in ready-made garment. Since the sector employment index does not change too often, it is predicted that unregistered employment in the sector is 59 percent. Women employment is too high in the sector comparing to the level in manufacturing industry. The rate of women employees is 37,9 percent in the sector, while it is 21,2 percent in the manufacturing industry.

189. Turkish textile and ready-made garment sector has been in a change and transition process. In this process; while some companies ended their production activities, some companies keep on increasing their competitiveness. In order to benefit more from globalization in production, imported input has been increased in use and provided more by domestic retailers.

190. In recent years, positive developments in fashionable and branded production, which has a big importance to sustain the competitiveness, have occurred and production processes have been improved. Especially, rapidly changing fashion perception provides new opportunities for Turkey’s industry. Some remarkable brands have risen to higher levels in fashion and design activities and value chain by enhancing their brands.

191. Cost competitive advantage has been gradually decreasing in textile, ready-made garment and leather sectors. Competing with China and other Far Eastern countries which have the advantage of cheap labour force could be possible with high value-added, quality, fashionable, branded and timely production compatible with environmental and social www.uis.gov.tr 57 Sector Strategies responsibilities. In addition, development of technical textile and multi-functional products including advanced technology has a big importance.

192. Despite some negative developments, textile and ready-made garment sector in Turkey has also advantages to sustain competitiveness. Turkish textile and ready-made garment sector is capable of adapting to the changing condition of international trade by transforming in the axis of transition from supplier country to market-maker country and producing information based products. Turkish textile and ready-made garment has the advantage to compete on short-term and fashionable products by combining its production experience and integration with the advantage of logistics. Furthermore, there are substantial infrastructure advantages for technical textile and smart textile production technology although this technology has not settled yet in Turkey. B. Overall Objective It is aimed to enhance the current employment opportunities in textile and ready-made garment sector, to meet the demand for qualified labour force and to prevent unregistered employment in the sector. C. Targets

1. Unregistered employment will be reduced by 50 percent in 2023 compared to level at the end of 2012 by promoting policies to prevent unregistered employment and increasing inspections. 2. 50 percent of employees in the sector will be certified until 2023. D. Policies

1. Current employment opportunities will be enhanced.

2. Demand for qualified labour force in the sector will be met. 3. Unregistered employment will be reduced.

4. Occupational health and safety awareness will be ensured in the sector.

5. Clustering policies will be implemented in a planned scheme.

6. Social responsibility standards will be disseminated in the sector. 58 Tourism Sector TOURISM SECTOR A. Current Sıtuatıon

193. With its growing impact, tourism sector accounts for a significant share in world’s economic growth. Tourism stands at a very significant place for national economies with the foreign currency inflow and employment it created. Being a supplementary sector in the economic development for long years, tourism has become one of the main sectors in many countries.

194. Number of international tourists and amount of tourism income has been increasing despite the economic recession in 2009. Number of tourists, which was 436 million in 1990, rose to 677 million in 2000 and 1 billion 35 million in 2012. As for the tourism income, it increased from 280 billion dollars to 1.1 trillion dollars in that period.

195. It is predicted that amount of tourism income and number of tourists will continue to increase rapidly in the forthcoming years. World Travel and Tourism Council (WTTC) foresees that tourism and travel sector will have 4,4 percent annual growth between the years 2009 and 2018 and constitute 10,5 percent of the Gross World Product by 2018. According to the estimates of World Tourism Organisation (WTO), 1 billion 400 million tourists and 2 trillion dollars tourism income will be achieved by 2020.

196. Turkey has a significant position in tourism by being one of the top ten touristic countries in the world. 2,7 percent share of the world tourism market and 5,6 percent share of the European tourism market belong to Turkey. According to 2012 data of WTO, Turkey is ranked as 6th and 12th in terms of number of tourists and tourism income, respectively.

197. Compared to its competitors, Turkey remains as a less explored destination for intercontinental visitors. Despite not reaching its full potential, Turkey resumes its progress in tourism. Although it experienced temporary demand shortages as a result of the short- term crisis, Turkey stuck to an annual demand increase which was 4,5 times higher than the world average during the economic expansion period (2002-2008). Because of the price competitive advantage, tourism sector in Turkey was not negatively affected as expected in 2009, despite the unfavourable conditions related to global economic crisis. However, tourism income dropped down. In the last decade, number of tourists increased more than 100 percent and reached 31,4 million while tourism income became 2 billion dollars with 187 percent increase. Nevertheless, increase of 8,4 percent in tourism income explicitly fell behind the increase of 16,2 percent in number of tourists in the last three years.

198. According to Tourism Strategy of Turkey 2023, main target is to become one of the top five countries in terms of tourist attraction and tourism income. 20 million people are aimed to benefit from domestic tourism market in Turkey. In case of works defined in the Strategy to be completed, in 2023, it is predicted that 50 million tourists, 50 billion dollars income for external tourism and 1000 dollars consumption per tourist will be reached. These targets mean that current economic magnitude of tourism sector will be four times higher. Achieving these www.uis.gov.tr 59 Sector Strategies targets will increase the employment rate in the sector in a significant manner. Development of new tourism and employment areas will contribute to the elimination of regional income discrepancies.

199. Tourism is a labour intensive sector. According to 2010 data of TURKSTAT, over one million people employed in accommodation and catering services of tourism sector constitute 4,8 percent of overall employment. The rate of the people employed in the tourism sector gradually increased when the last decade is considered. TURKSTAT data reveal that rate of people employed in the tourism sector in overall employment increased from 4,1 percent in 2004 to 4,8 percent level in 2010. This demonstrates the growing importance of tourism with regard to employment.

200. The potential of tourism sector in terms of employment is high. The fact that sectoral growth flexibility of employment is above 0.7 in tourism sector is an evidence of this situation. According to 9th Development Plan, total number of beds is expected to be 1.3 million in 2013 and in the case of reaching this target, it is foreseen that 268.000 new jobs with social security will be created. Direct employment will be increased in fields such as hotel, restaurant, transportation, tourism organisation and tourism education and indirect employment will be increased in subsidiary fields such as furniture and construction. Furthermore, tourism sector will help increasing job opportunities and stimulated employment in sub sectors such as food industry, public services and education. When the tourism targets are considered, it is clear that the quality of required labour force will change. According to 2023 strategy, tourism sector limited to the coastal regions and only to summer season will be disseminated to the whole country, new tourism regions and activities will be initiated. There will be increased need for qualified staff particularly in alternative tourism activities such culture, health, thermal, highland and mountain tourism.

201. Tourism sector is one of the most advantageous sectors regarding employment cost per capita as well as sector’s high employment potential. In terms of investment incentive documents prepared in 2001-2012, 129.000 TL is needed to create one job in tourism sector, while it is 154.000 TL in manufacturing industry, 488.000 in transportation sector, 2.230.000 TL in energy sector. In terms of share of import in investments, tourism is the sector with the lowest import dependency. As of 2008, the share of import is 81,9 percent in weaving and clothing sector, 63,8 percent in forestry products, 60 percent in manufacturing industry while it is 6,2 percent in tourism sector.

202. In Turkey, there are serious problems regarding employment in tourism sector as well. There is a dual labour force structure and quality in tourism sector. A few big companies consider qualified labour force and occupational competency as important and relatively more qualified workers are employed in these companies. However, unqualified young labour force is usually employed in the sector. Moreover, despite the high women employment potential of the sector, there are substantial challenges in the field of women employment and qualified labour force because of high unregistered employment, seasonal employment, high labour turnover and overworking. 60 Tourism Sector

203. Tourism, one of the indispensable and main sectors of Turkish economy, is a sector that will be a remedy for foreign deficit and unemployment, create employment opportunity for youth and women workers, strengthen cultural and social communication, and connect Turkey to the world with its uniting feature. Competitive advantage of the sector and availability for new investments, as well as Turkey’s high job-creation potential in tourism at local and regional levels are the opportunities of the sector. Hence, increasing employment and overcoming the employment related problems in tourism sector is of great importance for national employment level and Turkish economy. B. Overall Objective It is aimed that current employment opportunities will be enhanced by increasing the feasibility of flexible work conditions, by meeting the need for qualified labour force and by supporting alternative tourism. C. Targets

1. From 2013 to 2023, employment in tourism sector will be increased by 80 percent. 2. 400.000 tourism employees will be trained vocationally and labour force training will be provided to 500.000 people until 2023.

3. From 2013 to 2023, unregistered employment will be reduced by 50 percent. D. Policies

1. Current employment opportunities will be promoted and working conditions of employees will be improved.

2. Labour force quality of the sector will be promoted.

3. Unregistered employment and foreign illegal work will be prevented. www.uis.gov.tr 61 MONITORING, EVALUATION AND COORDINATION CHAPTER FOUR Monitoring, Evaluation and Coordination MONITORING, EVALUATION AND COORDINATION

204. The National Employment Strategy, prepared in line with the vision 2023, shall be implemented through action plans covering three-year periods and to be updated at the end of every year.

205. National Employment Strategy Monitoring and Evaluation Committee monitors and evaluates the National Employment Strategy through the annexed action plans. The Committee shall consist of representatives of the Ministry of Labour and Social Security, Ministry of Family and Social Policies, Ministry of Development, Ministry of Economy, Ministry of Science, Industry and Technology, Ministry of National Education, Ministry of Finance, Undersecretary of Treasury, confederations of trade unions and employer organisations, professional organisations with the status of public institution and the accredited non-governmental organisations who shall be holding a position equal to the director-general or president. Representatives of other public institutions and agencies shall be invited when necessary.

206. The Committee shall gather twice a year under the presidency of the Undersecretary of Ministry of Labour and Social Security in order to monitor the implementation process of Strategy. During the meetings held at the end of each year, the Committee discusses the actual developments and problems in implementation and decides the necessary revisions. The Committee shall set up technical sub-committees on issues decided on.

207. The Ministers and the presidents of the relevant professional organisations and NGOs shall attend the meeting where the three-year action plans are submitted and the works of previous periods are evaluated.

208. The General Directorate of Labour under the Ministry of Labour and Social Security serves as the secretariat of the Board. The Secretariat shall prepare the current status document regarding action plans prior to the meeting and distribute them to the Committee members. The current status documents shall be based on the information gathered from the institutions that are responsible for the actions. The Secretariat shall send the updated action plans and minutes of the meeting that include the decisions to all participants and they shall be published on the website of the Ministry of Labour and Social Security. www.uis.gov.tr 65 ACTION PLANS OF NATIONAL EMPLOYMENT STRATEGY (2014-2016) MAIN POLICY PILLARS Action Plans (2014-2016) 68 Strengthening the Relation Between Education and Employment STRENGTHENING THE RELATION BETWEEN EDUCATION AND EMPLOYMENT

1.Basic skills and competences will be given to all starting from pre-schooling in an accessible education and training system. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY Works related with the employment of guidance counsellors will be 1.1 Special groups conducted for education of children (girls, children with in need of special policies in pre- MoFSP disabilities, children living school institutions. Projects related in unfavorable conditions with enrolment of girls will be due to geographical Ministry of Interior promoted. To increase the girls’ and location or socio-economic disadvantaged persons’ access to MoNE Continuous position) will be focused in Ministry of secondary education, regulations access to education and Finance will be conducted to benefit these obstacles against access groups from hostel and dormitory and attendance of these services. Works will be conducted Relevant NGOs groups to education will be in order to increase the quality of removed. special education services and access to education of individuals in need of special education. Ministry of Interior Necessary works will be conducted to increase the number of pre-school institutions and children enrolled in 1.2 Dissemination of pre- Ministry of pre-schooling, and effectiveness of school education will be MoNE Finance Continuous current regulations will be improved. promoted. Besides, regulations will be made to Local detect the unregistered children and Administrations to implement bussed education by Relevant NGOs disseminating. MoFSP Ministry of Interior Ministry of Development 1.3 Schooling rates in MoNE Infrastructure, building and facility higher education will be Ministry of Continuous deficencies of higher education increased. CoHE Finance institutions will be eliminated and Ministry of their number will be increased. Environment and Urbanization Relevant NGOs www.uis.gov.tr 69 Action Plans (2014-2016)

2. The quality and efficiency of the general and VET system will be enhanced. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY Having ensured the more active role of chambers, vocational organisations and employee and employer organisations, their incentive and support will be provided to private sector conducting applied trainings by considering the budgetary constraints. Establishment of training units in private enterprises will be promoted. MoLSS Provision of vocational training 2.1 With the intention to Ministry of by private sector, vocational support private vocational Finance organisations and employee and technical education and employer organisations will MoNE CoHE Continuous schools and establish new be supported. Education in the ones, private sector will be Relevant vocational schools/institutions will financially promoted. Professional be undertaken in cooperation with Organisations the labour market. Training capacity composition works of vocational organisations and foundations will be supported. At vocational and technical education schools/ institutions, works will be conducted about the governance model in which local administrations and sector representatives are included, and legislative modifications will be carried out when necessary. MoSIT Ministry of 2.2 Contribution of The Union of Customs and Provincial Industry and Chambers and Trade Trade Chambers to Commodity Continuous Regarding the measure, necessary vocational education will Exchanges of MoNE modifications are planned in the be ensured. Turkey Relevant draft Law Amending the Law Professional numbered 3308 and Some Other Organisations Subjects. MoSIT Cooperations with related institutions 2.3 Studios of schools/ will be made to use existing studios, institutions associated Ministry of Intrerior laboratories, machines, materials with MoNE DG Vocational and equipment in a more effective and Technical Education Ministry of and efficient manner. and MoNE DG LLL will MONE Customs and Continuous be modernised and used Trade in formal and informal Ministry of education and labour force Finance trainings. Local Authorities Vocational schools which could not adequately meet the needs of labour MoLSS force demand will be restructured. 2.4 Vocational schools MoNE Mechanisms will be developed to will be restructured CoHE Relevant 2015 redesign the curricula of vocational in organisational and Professional schools in line with labour market functional manner. Organisations demands, and work place based trainings will be included in the curriculum. 70 Strengthening the Relation Between Education and Employment

3. Open learning environments will be established under LLL and life-long learning will be encouraged. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY The open education institutions of MoNE (secondary, high and CoHE vocational high open education İŞKUR schools) which are providing 3.1 Learning opportunities service in order to provide access other than obligatory Relevant to education for individuals out MoNE Professional 2015 education will be of obligatory education will be diversified. Organisations enhanced. Certificate programmes Relevant Social provided by informal education Partners institutions for individuals out of obligatory education will be revised in line with needs. CoHE TÜBİTAK 3.2 Distance learning Information and programmes will be Communication Draft legislation prepared by MoNE disseminated with the Technologies will be revised in order to implement MoNE Continuous help of information Authority informal education by distance and communication Relevant learning. technologies. Private Sector Representative Relevant NGOs 3.3 LLL portal will be İŞKUR established and all information related with TURKSTAT Within the scope of reconstruction education activities CoHE of MoNE, cooperation will be built MoNE 2015 implemented by public Relevant NGOs with relevant institutions towards and private sector, social establishment of LLL portal. Relevant Social partners and also NGOs will Partners be compiled in this portal.

4. Coherence will be established between education and labour market. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY MoSIT MoNE CoHE By the end of 2014, NQF will be 4.1 National Qualifications İŞKUR prepared in line with the European Framework (NQF) will be VQA Relevant 2014 Qualifications Framework (EQF) prepared. Professional and submitted to relevant partners’ Organisations review. Relevant Social Partners MoSIT MoNE 4.2 National occupational CoHE İŞKUR Data gained from labour market standards will be prepared need analysis will be used on the which to be determined VQA Relevant 2014 determination of occupations to be according to the priorities Professional standardized. of labour market. Organisations Relevant Social Partners www.uis.gov.tr 71 Action Plans (2014-2016) 4.3 Necessary legislative MoSIT Administrative and financial capacity regulations will be made Ministry of of VQA will be strengthened in order in order to strengthen VQA 2015 Finance to increase the efficiency of the the administrative and MoNE instutition. financial capacity of VQA. Relevant Ministries CoHE National occupational standards 4.4 National occupational VQA published in Official Journal will be standards published in reflected to education programmes İŞKUR Official Journal will be according to recommendations of reflected to secondary Relevant commissions established by relevant MoNE Institutions and Continuous education system within partners and will be implemented one year and implemented Bodies after the approval of Turkish in the following school Relevant Social Education Board. Works relating the year. Partners implemented programmes will be Relevant quantitatively reported. Professional Organisations 4.5 National occupational MoNE standards published VQA The efficiency of activities for in Official Journal will İŞKUR reflecting national occupational be reflected to higher CoHE Continuous standards to higher education education system within Relevant programmes will be increased. one year and implemented Professional in the following school year. Associations 4.6 Within the framework of Vocational, Information, Concerning the activities in charge of Guidance and Counselling MoNE MoNE and İŞKUR about Vocational (VIGC) services, İŞKUR Guidance and Counselling Services Relevant and MoNE services in the Vocational Knowledge, Professional will be enhanced and İŞKUR Continuous Guidance and Counselling Organisations disseminated. In this Agreement Document, cooperation scope, İŞKUR will provided Relevant Social and coordination between MoNE these services in short- Partners and İŞKUR will be strengthened by term via service contract, if considering budgetary constraints. necessary. Formal and informal education 4.7 Horizontal and vertical VQA programmes will be prepared transition opportunities will MoNE İŞKUR Continuous enabling horizontal and vertical be provided for individuals. CoHE transition.

5. ALMPs will be prevalent and their efficiency will be enhanced. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY MoLSS TURKSTAT Labour market needs analysis TOBB model will be revised and actual needs of the labour market will 5.1 Labour market needs Related Social be determined and appropriate analyzes will be conducted İŞKUR Partners Continuous policies will be carried out at annual periodically and efficiently. Relevant analyzes. Especially, provincial Professional labour market analyzes will be Organizations conducted in cooperation with Development development agencies. Agencies 72 Strengthening the Relation Between Education and Employment Undersecretary of Works on creating a databank Treasury which features information on active 5.2 An analysis regarding MoLSS employment programmes of all all the ALMPs will be Ministry of İŞKUR 2015 institutions/organizations in İŞKUR conducted and a databank Development will be conducted in coordination will be established. MoNE with the life-long learning portal VQA works of MoNE. TURKSTAT MoNE Related Social Partners 5.3 ALMPs will be ALMPs will be developped privatized towards target İŞKUR Relevant 2015 in accordance with specific groups. Professional characteristics of each group. Organizations Development Agencies Undersecretary of Treasury MoLSS Ministry of An information system which 5.4 The monitoring and Development enables monitoring and evaluation evaluation system for will be established by increasing active labour market İŞKUR Ministry of 2015 qualified personnel number in order programmes will be Fİnance to reinforce information technologies improved and activated. MoNE infrastructure. Relevant Professional Organizations MoLSS Ministry of Finance 5.5 Private Employment Quality and efficiency of services will State Personnel Agencies and ALMP be improved by drafting necessary Presidency service providers will İŞKUR 2015 regulations on employment of recruit or provide job and Related Social job and vocational counselors by vocational counselors. Partners related institutions/organizations. Relevant Professional Organizations Ministry of 5.6 Monitoring, evaluation Finance Efficiency and effectiveness of and coordination of plans Ministry of central level activities will be İŞKUR 2015 and programmes will be Development improved by recruiting qualified carried out efficiently. State Personnel experts. Presidency Qualified personnel who will adapt to the periodic changes in the demand 5.7 Qualified personnel Ministry of and qualifications of target groups will be recruited in order to Finance will be recruited in order to gradually perform services towards Ministry of reach the rate of unemployed/ İŞKUR 2014 target groups at local Development employer per employee in the EU level more actively and State Personnel and to provide efficient plans and effectively. Presidency programmes at local level which will be carried out in accordance with the characteristics of target groups. www.uis.gov.tr 73 Action Plans (2014-2016) Efficiency of committees will be 5.8 Functionality and improved by taking measures efficiency of Provincial Related Public against factors which limit the Employment and Institutions İŞKUR 2014 efficiency of PEVTCs who Vocational Training Development are responsible for taking and Committees will be Agencies carrying out measures to improve increased. employment at local level. MoSIT MoLSS Ministry of Development Ministry of A commission will be established and 5.9 Monitoring and Customs and will meet in 6 month periods in order evaluation commission Trade to monitor and evaluate all ALMPs İŞKUR 2015 for entrepreneurship and including entrepreneurship trainings ALMP will be established. MoNE and will provide suggestions to KOSGEB improve the activities. SSI Relevant Professional Organizations

6.Project based innovation and entrepreneurship will be supported through education system and ALMPs. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY Innovation and entrepreneurship MoNE will be included in the curriculum 6.1 Innovation and KOSGEB of higher education in order to entrepreneurship courses VQA increase the knowledge and skills will be included in the CoHE 2015 of youth who will transfer to work curriculum of higher Relevant life from higher education and to education. Professional improve their interest on innovation Organizations and entrepreneurship. Higher education students will have the opportunity to choose 6.2 Entrepreneurship entrepreneurship as a selective courses will be included in MoNE course and the consciousness all of the higher education CoHE 2016 KOSGEB level of youth will be improved with curriculum as a selective the perspective of supporting and course. increasing the number of young and conscious entrepreneurs. VQA 6.3 Awareness of all KOSGEB students starting from MoNE Entrepreneurship Guidebook primary school will be TOBB 2016 modules published by MoNE will be raised on the importance CoHE Relevant updated and put into use. of entrepreneurship. Professional Organizations KOSGEB İŞKUR activities for supporting Related Social 6.4 The portion of the entrepreneurship will be intensified Partners entrepreneurship trainings İŞKUR 2014 and more unemployed people will in ALMPs will be increased. Relevant be encouraged to establish their Professional own businesses. Organizations 74 Strengthening the Relation Between Education and Employment KOSGEB Announcements and applications of Related Social Applied Entrepreneurship Trainings 6.5 Cooperation between Partners which are coordinated by KOSGEB İŞKUR, KOSGEB and Relevant and carried out by İŞKUR will be development agencies İŞKUR 2015 Professional placed under the İŞKUR portal. will be improved for Organizations Trainings carried out by development entrepreneurship trainings. agencies will be harmonized with Development İŞKUR and KOSGEB activities. Agencies 6.6 Entrepreneurship training requests which are Entrepreneurship training requests submitted to İŞKUR will İŞKUR KOSGEB 2014 will be rapidly fulfilled as it’s be fulfilled once sufficient important for creating jobs. number of applications are received. 6.7 Participants for Applied Entrepreneurship Improving entrepreneurship skills Trainings which are and abilities has upmost importance coordinated by KOSGEB both for SMEs and for increasing and carried out by İŞKUR İŞKUR KOSGEB 2014 employment therefore cooperation will be determined and of two implementing institutions on İŞKUR and KOSGEB the subject will be developped at representatives will every level. cooperate in every step of the trainings. MoSIT MoNE Ministry of 6.8 A databank where Customs and the recipients of Trade Information regarding entrepreneurs entrepreneurship trainings İŞKUR 2015 will be shared by coordination of and entrepreneurs can be KOSGEB related institutions/organizations. monitored will be created. SSI Relevant Professional Organizations In order to develop SMEs and 6.9 25 new Technology entrepreneurs who has new ideas Development Center Ministry of and inventions based on science (TEKMER) will be Finance and technology, support techo- established and TOBB entrepreneurs who has technologic cooperation on R&D KOSGEB 2016 Vocational ideas and support innovative and innovation of Institutions activities, cooperation with related institutions and institutions and organizations will be organizations with these CoHE developped considering budgetary centers will be provided. constraints. New Business Development Ministry of Centers (BDCs) which are Development established as models for job Ministry of creation and business start-ups Finance and which support and facilitate the 6.10 New Business establishment of businesses by new Development Centers KOSGEB TOBB Continuous and small entrepreneurs, improve (BDC) will be established. Vocational the survival and growth opportunities Institutions of enterprises and protect them from Development start-up risks will be established and Agencies entrepreneurship will be supported considering budgetary constraints. www.uis.gov.tr 75 Action Plans (2014-2016) Applied entrepreneurship trainings MoSIT will be provided to natural persons 6.11 Applied entrepreneur- KOSGEB and specific target groups in order ship trainings will be gen- Relevant 2016 to disseminate the entrepreneurship eralized. İŞKUR Professional culture and increase the success Organizations level of businesses which are established with a business plan. Ministry of Finance Start-up costs of businesses in MoSIT the BDCs and for people who has 6.12 New entrepreneur KOSGEB İŞKUR 2016 received entrepreneurship trainings support will be provided. will be covered in accordance with Relevant budgetary constraints. Professional Organizations A tax concession which considers MoSIT budgetary constraints will be 6.13 In order to promote provided for new businesses with entrepreneurship, easy KOSGEB Ministry of an amendment in the Income Tax terms of taxation will Relevant 2016 Finance Law which will be drafted with an be provided for new Professional approach to support an increase businesses. Organizations in production and employment and reinforce entrepreneurship. KOSGEB services towards MoSIT entrepreneur candidates will 6.14 Information and be extended. Additionally, job guidance services for Relevant İŞKUR 2014 counseling activities carried out entrepreneurship will be Professional by İŞKUR will provide general generalized. Organizations information on KOSGEB services and guidance if necessary. İŞKUR Relevant By generalizing guidance services 6.15 Services which Professional provided by KOSGEB, business provide guidance services KOSGEB Organizations 2014 processes of SMEs will be improved for SMEs will be increased. Municipalities and employment created by SMEs will be developped. Development Agencies SMEs will be brought together and their cooperation-coalition projects 6.16 SMEs will be will be supported in order to provide supported in order to bring Relevant “common solutions” to common them together to cooperate KOSGEB Professional 2015 problems of SMEs which are hard with an understanding for Organizations to solve single handedly such as “common solutions for supply, marketing, low capacity common problems”. utilization, low competitive strength, finance. 76 Ensuring Security and Flexibility in the Labour Market ENSURING SECURITY AND FLEXIBILITY IN THE LABOUR MARKET

1. Applicability of flexible work arrangements which does not have sufficient implementation despite legal arrangements will be improved. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY Necessary amendmends in 1.1. Renewal of fixed term İŞKUR Labour Law will be made in order work contracts will be MoLSS SSI 2014 to ease the application of fixed possible in a determined Social Partners term work contracts which provide duration. flexibility for the labour market. Ministry of Energy and Natural Resources In order to solve the problems Ministry of faced by employers and Finance It will be employees and resolve the loss 1.2. Sub-contracting Ministry of determined of social and economic right of arrangements will be re- Development through employees in employer and sub- regulated taking rights of MoLSS Ministry of negotiations contractor relations, labour and workers and workplace Health with related procurement legislation will be conditions into account. Undersecretariat parties. amended considering judicial of Treasury decisions and inspections will be SSI effectualized. Public Procurement Authority Social Partners Labour Law provisions which prohibits part time employees to 1.3 Part-time employees will İŞKUR do overtime causes significant have the possibility to work MoLSS SSI 2014 problems in practice therefore overtime proportionate to Social Partners legal regulations regarding their work durations. overtime for part-time employees will be made.

2. New legislation will be drafted for flexible work arrangements which are not regulated. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY Ministry of Development 2.1 Necessary regulations Ministry of Flexible work patterns will be will be adapted for flexible Finance included in the labour and social work arrangements such as MoLSS Undersecretariat 2014 security legislation. EU acquis work sharing, flexible work of Treasury will be considered while drafting time, homeworking and İŞKUR the legislation. distant work. SSI Social Partners Temporary work which is Ministry of It will be limited in the Labour Law will Development 2.2 Legal arrangements for determined be possible to carry out via Undersecretariat private employment agencies through private employment agencies. MoLSS of Treasury to establish temporary work negotiations ILO Convention No 181, EU İŞKUR relations will be adapted. with related Directive No 2008/104/EC and SSI parties. EU practices will be considered Social Partners while drafting the legislation. www.uis.gov.tr 77 Action Plans (2014-2016)

3. Awareness level on flexible work arrangement of employees and employers will be increased. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY In order to increase the Social Partners applicability of flexible work 3.1 Awareness raising which is legislated in the activities on flexible work Non- MoLSS 2015 Labour Law, conferences and patterns will be conducted for Governmental symposiums will be held and employees and employers. Organizations bulletins etc. will be prepared for employers and employees. Cooperation mechanisms 3.2 Cooperation SSI between institutions will be mechanisms between improved in order to determine MoLSS, SSI and worker and MoLSS Social Partners 2015 what fields require clarification employer organizations will NGOs and organize awareness raising be developed. activities on flexible work patterns.

4. Minimum wage will be regulated in accordance with economic conditions and ratified international agreements. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY One single, simple and understandable regulation Ministry of which enables implementing Economy employment incentives in a more 4.1 Burdens on employment comprehensible and integrated other than wages will be Ministry of way, which are currently applied reconsidered in regards to Development at different durations and rates their effects on employment MoLSS Ministry of 2014 in various regulations, and and incentives towards Finance benefitting from incentives easier employment will be Undersecretariat will be adapted and budgetary simplified. of Treasury constraints will be considered in this regulation. Also, information SSI activities by raising awareness will be conducted for enterprises to benefit from these incentives. Work opportunities for those under 16 is limited in labour legislation therefore the limit 4.2 Age discrimination for the of 16 years of age determining determination of minimum MoLSS Social Partners 2014 the minimum wage will wage for those under 16 will be regulated considering be re-regulated. international agreements and the developments in the education system. 78 Ensuring Security and Flexibility in the Labour Market

5. Accessibility of flexible employees to economic and social rights will be increased. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY In accordance with the equal treatment principle, it will be ensured that all flexible 5.1 Accessibility of flexible employees will benefit from all employees to rights in labour MoLSS Social Partners 2015 rights such as annual paid leave, legislation will be improved. weeked, daily rest, childcare and vocational education and training.

6. Employability of flexible employees will be increased by means of active labour market measures. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY 6.1 Flexible employees will have the opportunity to benefit from vocational İŞKUR MoLSS 2014 education and training courses of İŞKUR when they Employment protection will be are unemployed. provided for flexible employees by increasing the employability of these employees. 6.2 Flexible employees MoLSS will be informed on İŞKUR İŞKUR 2014 Social Partners activities.

7. A Severance payment reform will be done which ensures the accessibility of all employees. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY By establishing severance Ministry of payment fund based on Development personal accounts which will Ministry of It will be reduce the financial burdens on Finance determined employment, increase financial 7.1 A severance payment Undersecretariat through foresight in enterprises and fund based on personal MoLSS of Treasury negotiations accelerate labour mobility, a accounts will be established. with related financially sustainable system SSI parties. which is accessible by all İŞKUR employees will be formed by Social Partners considering the budgetary constraints. www.uis.gov.tr 79 Action Plans (2014-2016)

8. Right of information and participation of employees will be ensured. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY 8.1 Regulations regarding İŞKUR Transition to full time work notification of flexible with indefinite duration will be employees about vacancies MoLSS SSI 2014 facilitated for fixed term and part in works with indefinite Social Partners time employees. duration will be adapted. Activities for employees to participate in management 8.2. Regulations will be Related Social will be conducted as it is a adapted for employees to MoLSS 2016 Partners social dialogue mechanism participate in management. which improves the peace and productivity in workplace.

9. Measures against excessive work will be taken. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY 9.1 Inspection efficiency İŞKUR Rights of workers will be ensured will be improved in order MoLSS 2015 by increasing the frequency and to obstruct illegal overtime SSI deterrence of inspections. work.

10. By strengthening the guidance role of inspection activities and increasing deterance via expanding inspections, reducing unregistered employment and securing the rights of flexible employees will be provided. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY 10.1 Administrative A circular will be published in measures will be taken SSI order to emphasize the guidance in order to strengthen the MoLSS 2014 role of labour inspectors at guidance role of labour Social Partners inspections conducted by MoLSS inspections. Labour Inspection Board. 10.2 Awareness and Awareness and consciousness consciousness raising raising trainings will be studies will be conducted conducted in order to increase MoLSS Social Partners Continuous in order to increase the the guidance efficiency of labour guidance efficiency of labour inspectors on flexible work and inspectors. unregistered employment. 80 Increasing the Employment of Vulnarable Groups INCREASING THE EMPLOYMENT OF VULNARABLE GROUPS

1. Labour force participation rate and employment of women will be increased, unregistered employment will be tackled. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY Undersecretariat The number of child care and day of Treasury care facilities will be increased. Ministry of Efforts to increase the number of 1.1 Precautions will be taken MoFSP Finance families benefiting from child and for reducing women’s caring 2016 SSI day care facilities, and incentives responsibilities. MoLSS for private sector in this field Ministry of will be made by considering Development budgetary constraints. Childcare facilities, which are affiliated to public institutions and agencies and serve for children of public servants, are established according to “Regulation on Childcare Facilities Established by Public Institutions and Agencies” pursuant to the Law No 657 on Public Servants. Aforementioned regulation is Ministry of prepared by Ministry of Finance Finance and State Personnel Department. 1.2 Bureaucratic obstacles MoFSP Responsibility of MoLSS on against disseminating those facilities is only restricted MoLSS Ministry of 2014 child care services will be to inspection and does not Development removed. include establishment, closure MoNE or operation responsibilities. SSI Efficient use of these childcare facilities will be ensured. It is also aimed that employees of private sector could use those facilities with equal conditions. It is foreseen that childcare service will be provided for staff of public institutions and agencies that employ more than 150 personnel, by considering the budgetary constraints. Incentives will be provided for 1.3 Precautions will be on-demand insurance premiums taken for improving working MoFSP that are borne by women conditions of women who MoLSS working in house services or work in house services or SSI 2015 domestically. In order to provide domestically and incentives İŞKUR pension and other social rights for those getting registered VQA for women, relevant revisions will will be provided. be made in legislation pursuant to ILO agreements. Labour Law, Civil Servants Law 1.4 Regulations in force MoFSP and related secondary legislation regarding gender equality MoLSS İŞKUR 2015 will be regulated in line with EU in labour market will be Social Partners Directives numbered 2006/54 harmonised with EU rules. and 2010/18. www.uis.gov.tr 81 Action Plans (2014-2016) MoFSP Measures stated in the Prime Human Rights Ministry Circular numbered Department 2011/2 on Preventing Mobbing at 1.5 Sanctions for preventing MoLSS 2014 Workplace which was published mobbing will be activated. State Personnel on Official Journal dated 19 Department March 2011 and numbered Social Partners 27879 will be enforced. 1.6 In order to remove the MoLSS Within the scope of awareness- cultural obstacles against MoFSP MoNE raising activities, national media, women employment, 2014 particularly tv channels, will be awareness raising activities İŞKUR TRT used and tv spots will be put will be conducted for Social Partners forward. relevant sectors of society. Job-guaranteed courses 1.7 Programmes for will be provided for certain women who have moved women groups in urban areas. from rural to urban areas MoFSP Women who benefit from social İŞKUR Continuous will be developed in terms MoLSS assistance will be determined of adaptability on labour and job counselling services will market. be intensified on employment activities for them. In the light of analyses conducted 1.8 In the light of labour in 5 selected provinces within market analyses to be Local EU-funded “Promoting Women held in provinces, labour Administrations Employment Operation”, courses force training courses will İŞKUR 2015 will be provided for target women be provided for sectors Social Partners groups. Labour market analyses that promote women will be conducted country-wide employment. for women in 2014. Ministry of Justice 1.9 Women exposed to MoLSS Projects that aim to ensure violence, women in shelters, participation of women excluded ex-convict women and Ministry of MoFSP 2015 from economic and social life widows will be supported Development for various reasons will be in terms of participation to MoNE prioritised. economic and social life. İŞKUR Trainings on gender-sensitive policy making and budgeting Undersecretariat courses will be provided for 1.10 Gender-sensitive of Treasury representatives of working approach and budgeting will MoLSS groups established in relevant be followed while preparing MoFSP Ministry of Continuous fields. Drafts of legislation, policy legislation, policy documents Development documents and strategies on or strategies for creating and employment will be reviewed increasing employment. Ministry of by DG for the Status of Women Finance in terms of gender equality and sensitivity. By promoting flexible working Ministry of types such as part-time work, Finance obstacles that keep women out 1.11 Incentive regulations İŞKUR of labour market for long time for women with children to MoLSS Continuous will be prevented, a balance stay in labour market will be SSI will be shaped between family provided. Social Partnerts and working and child care MoFSP responsibilities will be shared between parents. 82 Increasing the Employment of Vulnarable Groups Ministry of Finance It is aimed to provide awareness- raising for women with low income MoFSP in order to let them have their 1.12 Awareness of women Ministry of living and access labour market. Undersecretariat Development with low income will be To meet need of aforementioned of Treasury (DG raised and they will be Banking women, legal arrangements on for Financial Continuous supported by micro-credit Regulation and micro-credit system which has Sector Affairs system in order to promote Supervision implementation examples in and Exchange) women entrepreneurship. Agency our country and includes low- scale supports for women will Local be completed by considering Administrations budgetary constraints. Relevant NGOs Ministry of It appears that there is no sufficient Finance awareness on measures for 1.13 Incentive regulations MoFSP promoting women employment, regarding increasing MoLSS particularly regulations made women employment and SSI Continuous by Law 5763 and Law 6111. registered employment will İŞKUR Awareness-raising activities be disseminated and made Relevant Social will be conducted regarding widespread. Partners the regulations on promoting Relevant NGOs additional women employment.

2. Youth unemployment will be reduced. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY An individual approach will be taken which enables young 2.1 Career planning, job- people access the most seeking guidance, matching MoLSS suitable job at the easiest way. and counselling services İŞKUR MoNE Continuous “Individiual action plans” will will be provided for young İŞKUR be prepared, transition from people. education to work and accessing to labour market of young people will be facilitated. By providing vocational training, qualification and skill level of young people will be increased and theoretical knowledge will be transformed into practice and 2.2 Young people will be MoLSS used in labour market. When supported by labour force İŞKUR Continuous providing trainings, sectors with trainings. MoNE high labour demand, especially which need young labour force the most, will be taken into consideration. Practicing on-the- job trainings will be ensured by employers’ support. MoSIT MoLSS Trainings will be provided KOSGEB in order to promote youth 2.3 Youth entrepreneurship KOSGEB entrepreneurship. Trainings will Ministry of Continuous will be supported. İŞKUR Development be supported with information and guidance services on Relevant access to financial resources. Professional Organizations www.uis.gov.tr 83 Action Plans (2014-2016) Inspections, aiming to register young people who work unregistered because of the Ministry of challenges in transition from Finance education to work, will be 2.4 Unregistered youth İŞKUR SSI Continuous strengthened and legal sanctions employment will be tackled. MoLSS will be implemented effectively. With the help of awareness-raising Local Authorities activities, young people, families and also employers will increase their sensitivity on the issue. 2.5 Guidance and counselling Efficiency of guidance and services will be provided for MoFSP counselling services given by young people, particularly MoLSS JVCs will be increased in order young women, who to let young people and women İŞKUR SSI Continuous benefit from labour force use their knowledge and skills programmes in order to Social Partners they gain after the trainings ensure integration of young Relevant NGOs İŞKUR provides and facilitate people to the labour market. their accession to labour market. Young people who do not have sufficient information on entrepreneurship trainings 2.6 Entrepreneurship MoFSP provided by İŞKUR and the trainings provided by İŞKUR acquisitions gained afterwards will be more visible among MoLSS will be informed about these young people by use of İŞKUR SSI Continuous trainings. Visibility materials will employment fairs, career Social Partners be prepared in order to increase days and visibility materials. the number of people benefit More young people will Relevant NGOs from these services. Therefore, benefit from these trainings. visibility and accessibility of entrepreneurship trainings of İŞKUR will be ensured. MoFSP By inserting gender equality MoLSS and young employment issues 2.7 Gender equality and SSI on the agenda of Provincial youth employment will be Employment and Vocational on the agenda of Provincial Social Partners İŞKUR Continuous Training Boards at least once Employment and Vocational Relevant NGOs a year, efficiency of efforts of Training Board at least once Relevant the Board regarding increasing a year. Institutions and youth and women employment Bodies will be increased. MoFSP MoLSS Ministry of Food, Agriculture and Mobile units will be formed 2.8 Mobile units will be Livestock in order to reach rural areas formed in order to let young İŞKUR SSI 2016 efficiently. Therefore visibility of people in rural areas access Social Partners İŞKUR and its services will be İŞKUR services. Relevant NGOs raised. Relevant Institutions and Bodies MoSIT Incentives supporting youth KOSGEB employment and İŞKUR 2.9 More employers will be SSI services will be publicised. reached by publicizing the Social Partners İŞKUR Continuous Communication channels incentives for young people Relevant NGOs between İŞKUR and employers and other İŞKUR activities. Relevant will be strengthened and more Institutions and employers will be reached. Bodies 84 Increasing the Employment of Vulnarable Groups MoNE Publicity of entrepreneurship İŞKUR trainings will be ensured and 2.10 Efforts will be made entrepreneurship courses will in Forder to develop KOSGEB be inserted in higher education entrepreneurship CoHE Relevant NGOs Continuous programmes. In this scope, perspective among young Relevant communication channelswith people. Institutions and CoHE and universities will be Bodies enchanced. 2.11. Internship and on- Social Partners By reducing the challenges of the-job trainings will be young people face when seeking Relevant NGOs enhanced by creating for a job, adaptability of the İŞKUR Relevant Continuous interfaces through this group will be ensured and cooperations with relevant Institutions and youth unemployment will be institutions. Bodies decreased.

3. Labour force participation and employment of people with disabilities will be increased. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY In order to promote the Ministry of employment of people with 3.1 Insurance premiums Development disabilities, insurance premiums paid by the employers Ministry of paid by the employers that that employ people with Finance employ people with disabilities MoLSS 2014 disabilities will be completely will be completely covered by the covered by the relevant Undersecretariat relevant institution/organization institution/organization. of Treasury regardless of subject to quota. SSI Budgetary constraints will be taken into consideration. İŞKUR will let people with disabilities have better vocational 3.2 In order to increase the training and increase their labour participation rate MoNE employability by providing job and employability of people counselling services which will with disabilities, general Ministry of İŞKUR Continuous deal each person individually. and vocational education, Finance It is aimed to produce a new occupational rehabilitation Social Partners approach that lets those people and job counselling services take place in education and will be developed. labour without facing any discrimination. Technical and financial support 3.3 The physical to employers that employ environment of the people with disabilities in terms Ministry of workplaces will be arranged of regulations which will serve Finance by taking into consideration MoLSS efficient working of people the people with disabilities, MoFSP with disabilities and design Ministry of 2014 and employers will be Local of the working equipment technically and financially Finance of those people in line with Administrations supported in terms of the budget limitations will render Relevant NGOs ergonomic design of the employment of people with equipments. disabilities favourable for the employers. www.uis.gov.tr 85 Action Plans (2014-2016) Policies regarding employment of people with disabilities are substantially based on quota and penalty system in Turkey. Those policies’ inability to generate 3.4 Regulations oriented the intended results manifested towards the technical and the need for other employment financial support of the Ministry of methods. One of these methods protected workplaces will Finance is protective employment İŞKUR 2014 be made for the people with MoNE developed for mental and severly disabilities having difficulties Universities disabled people. In that respect, in entering the labour legal arrangements which are market. necessary in determining the context of technical and financial support in line with budget constraints will be made for the establishment and continuity of these protected workplaces. 3.5 Assessment and Within the scope of İŞKUR’s evaluation methods will be MoFSP job and vocational consultancy developed for people with MoNE services, assessment and disabilities to reveal their İŞKUR 2014 evaluation methods will be individual skills, existing Social Partners developed for defining the potentials and functional Relevant NGOs quality and skills of the people capacities. with disabilities. Although necessary legal measures within the scope of MoFSP Civil Servants Law no. 657 are 3.6 Sanctions will be taken regarding the obligation imposed on the public State Personnel MoNE of public institutions to employ institutions that do not meet Department Relevant NGOs Continuous public servants with disabilities, the obligations to employ İŞKUR the deficit still remains in a workers and public servants Local considerable level. With this with disabilities. Administrations regulation, sanctions will be imposed on public institutions that do not meet legal obligations. In the article 30 of Labour Law named “Obligation to Employ The Disabled and Former Convicts”, it is stated that “Employers are obliged to employ people with 3.7 Effective control disabilities in line with their mechanisms will be vocational, physical and mental developed against conditions. The ratio of obliged public and private sector employment is three percent institutions that do not for private workplaces and four comply the quotas regarding MoFSP percent for public institutions”. the employment of workers MoLSS Continuous İŞKUR Enforcement of this article and public servants with is crucial in increasing the disabilities. Sustainability employment rate of people with of the conditions in private disabilities. Besides, an effective and protected workplaces control mechanism is necessary should also be ensured by for 2006 dated “Regulation about these mechanisms. the Protedted Workplaces” to be functional. In this context, education and awareness level of labour inspectors will be improved. 86 Increasing the Employment of Vulnarable Groups Due to some issues arising from legislation, local administrations 3.8 People with disabilities that aim to give priority to people will be given priority on Ministry of MoFSP with disabilities on operating 2014 operating workplaces of Interior Relevant NGOs their workplaces cannot local administrations. reach this purpose. By this regulation, it is aimed to remove aforementioned challenge.

4. Re-employment of long-term unemployed will be accelerated. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY 4.1 Efficiency of labour force MoFSP As a result of the monitoring, programmes for long-term MoLSS additional measures will be unemployed people will taken such as psychological be monitored, deficiencies İŞKUR Local Continuous counselling in order to increase will be determined and Administrations the employability of long-term additional measure will be Social Partners unemployed. taken. Long-term unemployed will be divided into groups according to 4.2 Long-term their duration of unemployment, unemployment will be qualifications and skills and redefined according to its MoLSS the groups that have a higher characteristics or reasons İŞKUR Continuous TURKSTAT employability in business and existing job counselling consulting portfolio will be services will be regulated in prioritised. Specific training and line with the new definition. adaptability programmes will be developed for the other groups.

5. Regulations will be developed for anti-discrimination. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY Taking the effectiveness of visual media into consideration and in order to combat discrimination 5.1. TV spots regarding actively , tv spots regarding anti- anti-discrimination will be MoFSP discrimination will be prepared TRT Continuous broadcast on local and MoLSS to broadcast on national and national TV channels. local tv channels and a great importance will be put on preventing discrimination on tv channels. Awareness-raising activities on anti-discrimination will be extended, coordinated by MoFSP municipalities and development 5.2. Awareness-raising Ministry of Interior agencies on local and by activities will be conducted MoLSS Continuous Development relevant ministries on national on anti-discrimination. Agencies level. Conferences, seminars, workshops and meetings will be conducted periodically on anti- discrimination. www.uis.gov.tr 87 Action Plans (2014-2016) STRENGTHENING LINKS BETWEEN EMPLOYMENT AND SOCIAL PROTECTION

1. Social assistances will be provided as right-based and on the basis of predefined objective criteria. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY The classification will be done Minstry of with a legislative arrangement 1. 1 Similar kind of social Finance MoFSP on the basis of the principle on assistances will be merged 2015 SSI Ministry of right based social assistances and grouped. Development such as benefits for children, elderly, people with disabilities. With the finalisation of 1.2 “Project on Development scoring formulation Project, of Scoring Formulation for determination of social Determination of Social Ministry of assistance beneficiaries Assistance Receivers” will be MoFSP 2015 Development based on objective criteria and finalised and put into practice adaptation of scoring formulas to in all social assistance social assistance programmes programmes. will be ensured.

2. Social protection service will be defined and classified in a way to promote employment according to the needs of people by taking into consideration the composition of households. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY 2.1 Social assistance system Link between social assistance will be structured in a way and employment foreseen in that benficiaries of social the “Action Plan on Establishing assistances will be living on and Activating the Link between with their own opporunuties İŞKUR MoFSP Continuous Social Assistance System and within the shortest time and Employment” which was put into without receiving social practice in 2010, will be ensured asistance. Efforts will be to take place in the legislative carried out in order to provide arrangements. jobs to these people. Studies for “Social Support Consultancy” model will be carried out by the Ministry of Family and Social Policies aiming at setting up a system in accessing quick and reliable 2.2 A system focusing on Ministry of information for people in need family will be set up within Development of social assistance and in the scope of “Social Support MoFSP Ministry of 2016 providing the social support Consultant” model in the Finance most appropriate for the field of social assistance and İŞKUR needs. Through Social Support service. Consultacy Model, current situation of the family will be determined, all the needs will be identified, relevant departments will be contacted for the solution of challenges. 88 Strengthening Links Between Employment and Social Protection In entitlement to social assistances, not only the neediness of the applicant but 2.3 Social assistances Ministry of also the neediness of household will provided taking Internal Affairs will be taken into consideration. into consideration the MoFSP 2016 Arrangements will be made qualifications and needs of İŞKUR where factors such as household people in the household. population, ages of household members etc. will influence the determination of neediness. With the legislative arrangements to be done, unemployed people who are employable and 2.4 Benefits in cash living in a househod in need provided for employable will be entitled to benefit for a poor people will be provided MoFSP Ministry of certain period of time under the conditionally under the 2016 İŞKUR Development condition that they participate in name of “unemployment the active employment services benefit” aiming to promote provided by ISKUR. Those who employement. receive benefits will be directed to ISKUR for participating in active employment services.

3. Unemployment insurance will be restructured in a way to provide more social protection. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY 3.1 Content, amount to Undersecreteriat be paid and duration, and of Treasury conditions for entitlement of İŞKUR MoFSP 2016 unemployment insurance MoLSS will be improved to promote Social Partners employment. Content, conditions for entitlement, amount to be paid Undersecreteriat and duration of unemployment 3.2 Duration of of Treasury insurance will be re-arranged unemployment benefit will be taking vulnerable groups MoLSS into consideration in order to re-defined to sensitise it to İŞKUR 2016 annual unemployment rates Ministry of ensure that more unemployed at national level. Development to benefit from the insurance. Social Partners (i.e. young people who does not have adequate work experience cannot meet the 3.3 Conditions for entitlement duration for premium payment to unemployment insurance, and thus cannot benefit from amount to be paid and Undersecreteriat unemployment benefit) duration will determined of Treasury İŞKUR 2015 taking into consideration the MoLSS vulnerable groups of the long Social Partners term unemployed and people at high risk of unemployment. www.uis.gov.tr 89 Action Plans (2014-2016)

4. Activities aiming at poor people working unregistered and people at risk of poverty will be increased. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY 4.1 Programmes and implementations will be arranged to encourage Ministry of transition of small enterprises Finance MoLSS 2016 to registered sector by small İŞKUR enterprises that are a part of SSI the unregistered and creating employment broad in scope. Through reviewing current 4.2 Awareness will be raised social dialogue mechanisms on registered employment in order to promote transition through workshops at to registered employment in representative level, where small enterprises and to ensure problems and solution change in behavior and manner suggestions for unregistered Ministry of in this direction, workshops workers and employers Finance focusing on social security MoLSS 2016 problems and solutions, studies having unregistered workers İŞKUR in all sectors particularly at sectoral and micro level with SSI small enterprises will be carried in sectors unregistered employment is widespread out. Informative activities will be such as agriculture, are carried out for people receiving discussed and common social assistance to raise their grounds are defined together. awareness on social security. 4.3 Awareness raising activities will be carried Ministry of out for people receiving Finance MoLSS 2016 social assistance in order İŞKUR to direct them to registered SSI employment.

5. Opportunities to benefit from social assistances will be increased taking into consideration the characteristics of the households that are poor or at risk of poverty even if there are registered employees within the household. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY Conditions to benefit from social 5.1 Social assistances assitances will be improved will be handled with an by including poor workers inclusive approach to include or workers at risk of poverty registered workers, and will that are working registered Ministry of be provided within the scope MoFSP 2014 (especially those who have Development of objective criteria aiming to children) and prepared scoring diminish the risk of poverty for formula will be used in whole individuals taking household benefits for both encouraging conditions into consideration. registered employment and ensuring equity. 90 Strengthening Links Between Employment and Social Protection

6. Social protection programmes implemented by public institutions will be conducted in coordination. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY MoLSS 6.1 Integrated Social Ministry of Assistance Services Project MoFSP 2016 Development will be finalised. In parallel to determining İŞKUR social assistance programmes, coordination between programmes carried out by public institutions and also 6.2 As regards strenghtening related with Integrated Social the link between social Assistance Services Project will asisstances and employment, be ensured . Mentioned system current protocols between MoFSP will also support the link of social İŞKUR 2016 relevant institutions will be MoLSS assistance programmes to reviewed and new protocols employment. will be prepared according to the needs.

7. “Time Bound Policy and Programme Framework for the Prevention of Child Labour” will be implemented effectively in all provinces. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY It is aimed at taking child labour issue on the meeting agenda of “Provincial Employment and MoFSP Vocational Education Boards” at least once a year and MoNE 7.1 Child labour will be taken develop policies to tackle this on the meeting agenda of Governorships challenge. Local institutions and MoLSS Provincial Employment and Municipalities Continuous organisations will be ensured İŞKUR Vocational Education Boards to work in coordination on this Relevant Social at least once a year. issue. Besides, studies caried Partners out will be linked to “vocational Relevant NGOs qualification courses” aiming at increasing access to employment for families of children obliged to work. www.uis.gov.tr 91 ACTION PLANS OF NATIONAL EMPLOYMENT STRATEGY (2014-2016) SECTOR STRATEGIES Action Plans (2014-2016) 94 Information Technology Sector INFORMATION TECHNOLOGY SECTOR

1. Qualification of the labour force will be improved taking into consideration the current needs of the sector. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY In order to plan the policies 1.1 Labour force inventory of regarding the sector reallistically, İŞKUR MoSIT 2016 the sector will be prepared. labour force inventory of the sector will be prepared. MoSIT 1.2 Training standards will be Standards of occupations in increased in the activities of MoNE information technology sector İŞKUR 2016 İŞKUR regarding training of CoHE will be determined in line with the information technology staff. international standards. VQA 1.3 Specialists on database, software, network Technologies, computer Ministry of In the forthcoming period, it will be games and applications and Economy ensured to train skilled labour force information security and web MoSIT İŞKUR Continuous in the the fields where the labour programmers will be trained MoNE force demand is expected to be within the scope of the needs increasing. rising towards the labour CoHE market needs analysis and export potential. Higher education programmes will be rearranged taking the needs of the sector into consideration, 1.4 Higher education MoSIT trainings for computer technicians programmes will be rearranged CoHE 2016 will be supported with distant taking the needs of the sector MoNE education, and an increase in the into consideration. number of academicians studying in information technology field will be ensured.

2. Researches aiming at increasing new products and employment in information technology field will be supported. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY 2.1 Increase in the public expenditures allocated MoSIT Resources for R&D will be from national budget for Ministry of increased in order to improve the Ministry of Continuous research and development Development capacity of creating new products in information technology will Finance considering budgetary constraints. continue. www.uis.gov.tr 95 Action Plans (2014-2016) Ministry of Finance 2.2 Research and CoHE Both areas will be supported by development and cooperation considering the importance of R&D KOSGEB of universities-industry will MoSIT Continuous activities and the contribution of be promoted in information TÜBİTAK university-industry cooperation to technology field. Relevant national economy. institutions and organisations

3. Incentives aiming at entrepreneurship will be increased. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY Ministry of Economy Increasing enterpreneurship 3.1 Enterpreneurship aiming Ministry of through incentives regarding at software sector will be MoSIT Development Continuous information technology sector supported. Ministry of will be supported taking budget Finance constraints into consideration. KOSGEB

4. Usage of information technology Technologies in the social and cultural field and adaptability to transformation process will be increased. RESPONSIBLE PARTNER MEASURE INSTITUTION/ TERM EXPLANATION INSTITUTIONS BODY 4.1 Platforms for distant MoNE information technology sector will education will be used for be put on the agenda of distant CoHE TÜBİTAK Continuous information technology education programmes that are trainings. TRT widesprading from day to day. 4.2 Legislation on protection of Ministry of An increase in the number of new Ministry of Justice intellectual property rights will products and patents taken will Culture and 2016 be put into practice efficiently Turkish Patent be ensured through protection of Tourism in software sector. Institute intellectual property rights. 96 Finance Sector FINANCE SECTOR

1. Current employment opportunities will be improved. RESPONSIBLE PARTNER MEASURE TERM EXPLANATION INSTITUTION/BODY INSTITUTIONS 1.1 It will be supported that, in Ministry of In the development priority the underdeveloped regions, Finance regions, it will be ensured to dislocating the call centers SSI establish call centers which which are not obligatory for Ministry of Economy 2016 İŞKUR are becoming widespread metropolitans are directed in public institutions and towards underdeveloped Representatives big scale companies. regions. of the sector

2. Training programmes will be updated according to needs of the sector. RESPONSIBLE PARTNER MEASURE TERM EXPLANATION INSTITUTION/BODY INSTITUTIONS 2.1 Curriculum regarding For the purpose of training the relevant departments MoNE staff in line with the needs of universities and higher of labour market, the İŞKUR education institutions will CoHE 2016 content of higher education be rearranged taking into Representatives programmes regarding consideration the needs of the of the sector finance sector will be sector. updated. 2.2 The number and efficiency MoNE Intermediate staff that the of university and higher İŞKUR sector is in need of will be education programmes CoHE Continuous Representatives trained in accordance with regarding sub-sectors will be of the sector the analysis done. increased. Recognition of sector will be ensured for students of banking and insurance 2.3 Compulsory internship İŞKUR departments through implementation will be Representatives compulsory internship arranged in order to make CoHE of the sector Continuous implementation and the graduates of banking and Professional activities will be carried insurance departments more Organisations out to shorten the training qualified. process for those who are employed in the sector for the first time. www.uis.gov.tr 97 Action Plans (2014-2016)

3. Labour force demand aiming the needs of sector will be met. RESPONSIBLE PARTNER MEASURE TERM EXPLANATION INSTITUTION/BODY INSTITUTIONS Through the programmes 3.1 Active employment Representatives to be carried out by İŞKUR, programmes aiming at gaining of the sector it will be ensured to train İŞKUR Continuous and improving occupational Professional intermediate staff that skills will be prepared. Organisations are skilled in line with the needs of the sector. MoNE Studies of Committee for İŞKUR Finance Sector established 3.2 Certification system will under VQA which were be made functional through Professional VQA 2015 launched in 2011 aiming determining the professional Organisations at determination of standards. Representatives occupational standards will of the sector be finalised. 3.3 In order to increase the Activities to raise employment of people with VQA awareness and promoting disabilities in the sector, DG of Services will be carried out with cooperation with sector will for Disabled and representatives of İŞKUR Continuous be improved, and training Elderly the sector aiming the programmes for people with Representatives employment of people with disabilities aiming at providing of the sector disabilities especially in the occupational skills. banking sector. 98 Construction Sector CONSTRUCTION SECTOR

1. Current employment opportunities in the sector will be improved RESPONSIBLE PARTNER MEASURE TERM EXPLANATION INSTITUTION/BODY INSTITUTIONS MoLSS Ministry of Foreign Affairs The foreign contracts will be 1.1 Employment of Turkish MoLSS Ministry of suported through bilateral labour force in foreign 2016 İŞKUR Economy social security agreements contracts will be promoted. Undersecretariat with the relevant countries. of Treasury TCA 1.2 The problems of Turkish The relevant legislation will workers abroad due to social be developped considering SSI MoLSS 2016 security legislation or other the social security of legislation will be eliminated. workers working abroad.

2. Measures will be taken for meeting the demand for qualified labour force in sector RESPONSIBLE PARTNER MEASURE TERM EXPLANATION INSTITUTION/BODY INSTITUTIONS Vocational qualification system will be operational. Sectoral profession maps MoLSS will be prepared. Basic 2.1 Vocational standards will Relevant work categories will be VQA 2016 be defined and the certification Institutions and systematically determined system will be operative. Bodies which will provide input for creating training standards of qualifications and fixing performance criteria. Ministry of 2.2 VQA will complete rapidly Environment and The VET courses will the process of measurement Urbanisation train labour force to meet İŞKUR 2016 and evaluation of vocational Relevant the demand of sector for qualifications. Institutions and qualified labour force. Bodies Ministry of Economy The necessary supports 2.3 Training activities of envisaged in the Lifelong İŞKUR employers for their employees MoNE 2016 Learning Strategy will will be supported by the State. Relevant be provided within the Institutions and budgetary limits. Bodies www.uis.gov.tr 99 Action Plans (2014-2016) Considering the mid- Ministry of term and long-term Economy investment projections 2.4 Efficient collaboration of MoLSS and needs analyses of market actors and training MoNE İŞKUR Continuous the sector, secondary institutions on vocational vocational schools and education and training will be Relevant post secondary vocational ensured. Institutions and high schools will open new Bodies departments.

3. Awareness of occupational health and safety in the sector will be promoted RESPONSIBLE PARTNER MEASURE TERM EXPLANATION INSTITUTION/BODY INSTITUTIONS 3.1 The employers respecting the occupational health and Ministry of Finance safety regulations which New support mechanisms have low numbers of work Undersecretariat will be developped for accidents and occupational of Treasury decreasing the costs diseases will be supported by MoLSS SSI 2016 of enterprises working the State through decreasing in accordance with the Relevant their occupational health and occupational health and Institutions and safety premiums gradually safety measures. Bodies and paying them by the State budget. 3.2 The occupational health The employers will be Relevant and safety consultancy and encouraged to take the MoLSS Institutions and 2016 guidance services targeting occupational health and Bodies the sector will be developped. safety measures.

4. Unregistered employment in the sector will be prevented RESPONSIBLE PARTNER MEASURE TERM EXPLANATION INSTITUTION/BODY INSTITUTIONS The employers who Ministry of Finance employed a certain number 4.1 In incentive and training of employees will be supports, incentive systems MoLSS supported and the costs taking the number of registered SSI Relevant 2016 stemming from the training employees into account will be Institutions and activities will be financed implemented. Bodies by the State within the budgetary limits. 4.2 The scope of the MoLSS A mixed model combining inspections in the sector will TCA both dissuasive and be more concentrated on SSI Relevant Continuous incentive inspection guidance and the awareness Institutions and approaches will be on registered employment will Bodies decided. be increased. 100 Health Sector HEALTH SECTOR

1.Current employment opportunities in sector will be developed. RESPONSIBLE PARTNER MEASURE TERM EXPLANATION INSTITUTION/BODY INSTITUTIONS The institutions training health professionals are under CoHE and MoNE. Following the Ministry of Health’s statement on the inadequacy of health labour force, CoHE has recently started to incrase the capacity of the institutions training health professionals. Thus, the capacities has increased to the required levels for many professions, and the capacities has overpassed the needs for 1.1 The capacity and many professions. Therefore quality of the education and Ministry of Health Ministry of the capacities of the schools training institutions targeting Finance will be redefined according to health professionals will MoNE Continuous the need. The questions such be increased in order CoHE NGOs as the physical capacity of to balance demand and the institutions training health supply of labour force. professionals, the possibilities to find sufficient number of trainers and the creation of implementation areas will be taken into consideration and the available training capacity will be planned in a way to ensure the sustainability of the balance of supply and demand. In this process, Ministry of Finance will allocate staff/budget to the training institutions within the budgetary limits. The selected regions for Ministry of health tourism will benefit Finance from the incentives targeted the development of health 1.2 Measures will be Ministry of Economy Ministry of Continuous tourism within the budgetary introduced for developing Ministry of Health Development limits. The provision of health health tourism. Ministry of Culture services to the neighbouring and Tourism regions such as Europe and Middle East will be promoted. www.uis.gov.tr 101 Action Plans (2014-2016) Undersecretariat of Treasury The legal basis for incentives 1.3 The incentives for Ministry of MoSIT will be prepared and the investments in the sectors Development infrastructure regarding the of medicines and medical Ministry of Economy continuous Ministry of equipment and programs devices will continue and Ministry of Health Finance will be established within the R&D will be supported. SSI budgetary limits. TÜBİTAK In addition to the auxiliary jobs MoNE within the health institutions, 1.4 The number of support Ministry of Health the number of training personnel working in the Relevant courses organised by İŞKUR sector will be increased and İŞKUR Continuous Professional for training the supporting the balance of demand and Organisations staff engaged in patient care supply will be ensured. and elderly care and health NGOs tourism will be increased. The Ministry of Health is responsible for developing additional activities for increasing motivation Ministry of for ensuring sustainable Finance implementation of obligatory 1.5 The regional distribution Ministry of Health Ministry of Continuous service. In addition to the of health employees will be Development measures targeting health more balanced. SSI sector, plans for private health sector will be made aiming at the balanced distribution of health professsionals at national and regional scale.

2. Demand for qualified labour force in sector will be met. RESPONSIBLE PARTNER MEASURE TERM EXPLANATION INSTITUTION/BODY INSTITUTIONS Definition of professions 2.1 Professional will be realised gradually. specialisation will be In accordance with the ensured through defining definitions of the professions, the professions, publishing MoNE Ministry of Health professional specialisation 2016 the vocational standards VQA CoHE will be ensured via changing and making the educational the educational curricula, curricula compatible with gradually taking into the standards. consideration the targets of the sector. A sectoral needs analysis will be conducted. Taking the results of this analysis 2.2 The vocational MoNE as a basis, compatible qualifications of the health Ministry of Health CoHE Continuous lifelong learning policies employees will be improved NGOs will be prepared and the continuously. undergraduate and post graduate curricula will be diversified and revised. 102 Health Sector The qualifications of the staff 2.3 Improving the Undersecretariat employed/to be employed qualifications of the labour of Treasury in health sector will be force in the areas of health Ministry of Health Continuous İŞKUR improved through trainings insurance and health SSI on management, finance and economy will be supported. insurance in health sector. In the regions selected with regard to health tourism, the formal training programs 2.4 The language skills will be revised to enable the will be improved during MoNE health professionals speak and afterwards the formal İŞKUR at least one foreign language education process and Ministry of Health Continuous CoHE according to the needs of the studies in this scope will tourism region. Following the be supported through NGOs formal trainings the relevant incentives. NGOs and İŞKUR will provide professional language courses. Considering the ageing population of the country and 2.5 Active Labour MoFSP increasing demand for home Market Programs will be care services, vocational implemented targeting İŞKUR Ministry of Health Continuous courses will be conducted elderly and patient care NGOs for providing the qualified services. suppport staff required by the sector. In order to train qualified health professionals, vocational computer courses 2.6 Computor skills of the İŞKUR Ministry of Health Continuous will be organised and the labour force in the sector technologic requirements of will be improved. today’s world will be adapted to the sector.

3. Working times and conditions in sector will be reformed. RESPONSIBLE PARTNER MEASURE TERM EXPLANATION INSTITUTION/BODY INSTITUTIONS In order to revise the working conditions within the scope of occupational health and 3.1 The necessary safety, regulations including regulations on occupational Ministry of Health the standards for different health and safety will be MoLSS 2016 health units will be made made and the awareness SSI and awareness of health raising activities will be executives and employees in implemented. both public and private sector will be increased regarding this subject. Limits of working times, especially in the inpatient treatment institutions, will be revised considering the 3.2 Working times will be special characteristics of Ministry of Health MoLSS 2016 regulated. the healthcare units and new working times will be determined in parallel with the increasing labour force supply. www.uis.gov.tr 103 Action Plans (2014-2016) AGRICULTURE SECTOR

1. Employment conditions in agriculture will be improved. RESPONSIBLE PARTNER MEASURE BODY/ TERM EXPLANATION INSTITUTIONS INSTITUTION The structure of the supports oriented towards agriculture will be rearranged by taking into account Undersecretariat all the existing small and large of Treasury 1.1 Supports oriented scale enterprises and they will be towards agriculture will be Ministry of Food, Ministry of subjected to evaluation within the designed in such a way to Agriculture and Development Continuous scope of Agricultural Enterprises encourage specialisation and Livestock Ministry of Registry System. Through preservation of employment. Finance these measures; it is aimed for small agricultural producers to Social Partners specialise, organise, adapt to global competition, preserve and improve the employment levels. 1.2 The occupations in the agricultural sector will Ministry of Food, be defined and objectives Agriculture and The quality of the labour force regarding the determination Livestock in the sector will be improved of the occupational standards VQA Relevant 2016 via composing the occupational in these occupations will Professional standards by identifying the be identified to improve the Organisations occupational definitions in quality of the labour force in Universities agricultural sector. the sector and ensure efficient production. 1.3 Short-term working funds Short-term working funds will be in agricultural sector will be arranged in line with necessities İŞKUR MoLSS Continuous implemented by simplifying of the agricultural sector and the entitlement procedures. entitlement procedures will be simplified. For workers in agriculture to benefit from entrepreneurship opportunities both in agricultural MoLSS and other sectors, supports Ministry of Food, will be provided by taking into 1.4 Entrepreneurship Agriculture and account the budget limitations. and particularly women Livestock Positive discrimination will entrepreneurship oriented MoFSP Continuous İŞKUR be implemented for women towards the agricultural employed in agriculture workers will be supported. Relevant regarding the provision of these Professional supports. The entrepreneurship Organisations activities in question will be encouraged to organise by coooperatives. 104 Agriculture Sector Ministry of Food, Agriculture and 1.5 Vocational training Livestock In order to acquire efficient and courses will be organised Agricultural quality products, agricultural by İŞKUR to increase Producers producers will be provided the number of deliberate İŞKUR Organisations continuous vocational training programmes producers in agriculture sector by the coordination of Ministry of and to familiarise farmers Relevant Food, Agriculture and Livestock to the modern production Professional to produce in line with scientific techniques. Organisations methods. Universities 1.6 Social security coverage of MoLSS People employed in agricultural the people, particularly women Ministry of Food, sector will be enabled to enter SSI Continuous employed in agriculture will be Agriculture and into social security system with facilitated. Livestock the rearrangements . Agricultural In order to ensure a more Producers quality, widespread and efficient Organisations production, private sector Ministry of Food, in agriculture will be given Undersecretariat 1.7 Private sector investments Agriculture and incentives; credit facilities will of Treasury and credit opportunities will be Livestock Continuous be provided for agricultural promoted. The Central producers organisations in line Ministry of Union of Turkish with budget limitations. By this Economy Agricultural means, quality and level of Credit production in the sector will be Cooperatives increased. Through the establishment of Organised Industrial Zones based on Agricultural Specialisation, average cost of products in the agriculture sector will be decreased. By integrating agriculture and industry agricultural enterprises will be 1.8 Organised Industrial MoSIT supported in access to industrial Zones based on Agricultural plants and animal products Ministry of Food, KOSGEB Specialisation will be in the quality of raw material Agriculture and Relevant Continuous established, integration of which could be used as inputs Livestock Professional agriculture and industry will be in agricultural production. Those supported and improved. Organisations enterprises in question will be given technical assistance with respect to the support and improvement of vegetal and animal production and related industries; packaging, processing and conservation of products; and marketing management. 1.9 Provincial Agriculture Participation of Provincial Directorate’s participation to Agriculture Directorates to Provincial Employment and Ministry of Food, Provincial Employment and Vocational Education Board Agriculture and Vocational Education Board at least once a year will be İŞKUR Livestock Continuous will be beneficial in terms of ensured to get their opinions development of coordination and determine the activities MoNE opportunities among institutions regarding the developments and provision of sectoral and employment opportunities concentration. in agricultural field. www.uis.gov.tr 105 Action Plans (2014-2016) The existing communication 1.10 Agricultural enterprises between agricultural Ministry of Food, will be informed about and organisations and İŞKUR is İŞKUR Agriculture and Continuous enabled to benefit from İŞKUR aimed to be strenghtened and Livestock services. development of new cooperation opportunities are anticipated.

2. The education and qualification level of the labour force in agriculture will be increased, and its capacity of adaptability will be improved. RESPONSIBLE PARTNER MEASURE BODY/ TERM EXPLANATION INSTITUTIONS INSTITUTION Workers employed in agriculture will be provided basic vocational education and skill courses to 2.1 Waged workers in the Ministry of Food, improve efficiency and product sector will be provided basic Agriculture and İŞKUR Continous quality. These courses will be vocational education and skill Livestock planned by Ministry of Food, courses. Agriculture and Livestock and carried out with the support of İŞKUR. Vocational education and MoNE entrepreneurship courses 2.2 Vocational education and will be provided for the self KOSGEB entrepreneurship courses employed in the sector to İŞKUR Agricultural Continuous will be provided for the self promote entrepreneurship employed in the sector. Producers and to strenghten the Organisations agricultural organisation and institutionalisation. Employability of the labour force 2.3 Certificated education Ministry of Food, which shifted from agriculture to programmes oriented towards Agriculture and other sectors will be improved the labour force detached Livestock by developing their vocational from the agriculture will be qualifications. In this respect, İŞKUR MoNE Continuous implemented to enable their sectors and occupations will transition to the identified Relevant be identified and appropriate sectors and occupations in the Professional education programmes will be same region. Organisations organised towards this labour force. The labour force detached from agriculture will be prioritised in Public Work Programmes due 2.4 The labour force detached MoLSS to the expected dissolution in from agriculture will be İŞKUR Continuous the agriculture sector. By this prioritised in Public Work Social Partners means, elimination of negative Programmes. impacts over employment stemming from dissolution of agriculture will be pursued. 106 Agriculture Sector 2.5 In order to eliminate the Vocational education and skill adaptability problem in the programmes will be organised to labour market as a result of alleviate the adaptability problem the migration from rural to MoFSP of the people who migrated urban areas, new programmes İŞKUR Ministry of Continuous from rural to urban areas, and will be constituted. To increase Internal Affairs consultancy services will be the employability and social provided towards the elimination cohesion, education and of the social cohesion problem consultancy services will be of those people. provided to the migrants.

3.Registered employment in agriculture will be promoted. RESPONSIBLE PARTNER MEASURE BODY/ TERM EXPLANATION INSTITUTIONS INSTITUTION Registering the high levels MoLSS of informal employment in 3.1 Measures will be taken Ministry of Food, agriculture is quite important to against the high levels of Agriculture and determine the size of the sector SSI 2016 unregistered employment in Livestock and to develop right policies. the sector. Ministry of Necessary legal arrangements Finance will be made to tackle with unregistered employment. MoLSS Ministry of Food, Agriculture and Social awareness raising 3.2 Awareness raising Livestock activities will be carried out activities will be carried out Relevant concerning the importance SSI Continuous towards promoting registered Professional and advantages of registered employment. Organisations employment in agricultural sector. Agricultural Producers Organisations

4. Child labour in agriculture will be prevented. RESPONSIBLE PARTNER MEASURE BODY/ TERM EXPLANATION INSTITUTIONS INSTITUTION Incentives will continue in Ministry of budget limitation basis to ensure 4.1 Scholarship and credit Finance the educational attendance of or conditional cash transfer MoFSP children and youth in rural areas. facilities will be provided to MoNE Ministry of Continuous Scholarship and credit facilities children and youth in rural Internal Affairs or conditional cash transfer areas to encourage their opportunities will be facilitated, attendance in education. Ministry of Youth thus, children and youth will be and Sports kept in education. www.uis.gov.tr 107 Action Plans (2014-2016) Children of seasonal mobile agricultural workers will be prevented from working in 4.2 Special regulations will be MoFSP agriculture to ensure their conducted to encourage the attendance in education. By MoLSS attendance of particularly the MoNE Continuous this means, significant progress children of seasonal mobile Ministry of will be achieved towards the agricultural workers. Internal Affairs elimination of child labour in agriculture, which is regarded as one of the worst forms of child labour.

5. Working and living conditions of seasonal agricultural workers will be improved. RESPONSIBLE PARTNER MEASURE BODY/ TERM EXPLANATION INSTITUTIONS INSTITUTION In the target provinces where seasonal mobile agricultural workers temporarily reside, training programmes in line with 5.1 Vocational trainings and MoFSP the local labour force demands skill courses will be carried MoLSS will be implemented to ease their out for seasonal mobile KOSGEB access to regular employment. agricultural workers by İŞKUR. İŞKUR Continuous In this way, continious migration By this means, settlement Relevant of the abovementioned groups opportunities in target Professional will be diminished and in provinces will be promoted. Organisations line with the transformation in agricultural sector, their employment in different sectors will be facilitated. 108 Textile And Ready-Made Garment Sector TEXTILE AND READY-MADE GARMENT SECTOR

1. Current employment opportunities in sector will be developed. RESPONSIBLE PARTNER MEASURE TERM EXPLANATION INSTITUTION/BODY INSTITUTIONS Active labour market policies shall be Ministry of implemented to improve Finance women employment. Undersecretariat Employment incentives for 1.1 Women employment will MoLSS of Treasury 2016 first-time workers will be be supported. continued by taking into SSI account the budgetary KOSGEB constraints. Part-time working opportunities shall be extended for women. Ministry of Employment incentives Finance for workers under the age 1.2 Youth employment will be MoLSS 2016 of 30 will be continued by supported. SSI taking into account the KOSGEB budgetary constraints.

2. Demand for qualified labour force in sector will be met. RESPONSIBLE PARTNER MEASURE TERM EXPLANATION INSTITUTION/BODY INSTITUTIONS Vocational qualification system will be actualised. Sectoral occupational maps will be created. Basic job Social Partners categories that can be 2.1 Certification system will be Relevant used as input for identifying made functional by continuing VQA Professional 2016 qualifications, educational the idendification of vocational Organizations standards and perfomance standards. Relevant NGOS criterion (units) will be defined systematically. Compatibility of various jobs, tasks, required skills and attitude will be defined. A system for increasing the effectiveness and efficiency of job providing activities, particularly vocational education at technical MoNE areas, and making these 2.2 Active cooperation activities compatible with between market actors and Social Partners labour market demands educational instutitions will İŞKUR Relevant 2016 will be ensured. In order to be ensured on vocational and Professional increase the effectiveness technical education. Organizations of vocatinal training programmes, participation of relevant partners will be ensured. Awareness raising on vocational training services will be raised. www.uis.gov.tr 109 Action Plans (2014-2016) Support will be provided within the scope of LLL Strategy. Employers 2.3 Training activities of MoSIT who provide vocational employers who provide Ministry of training and have a vocational training for MoNE 2016 Finance training department on employees will be supported İŞKUR their workplaces will be by the State. supported by taking into account the budgetary constraints. Vocational education curricula will be updated in line with national vocational standards and qualifications. Institutional capacity on labour İŞKUR market analysis will be 2.4 Education curricula VQA strengthened and for this of educational institutions CoHE aim Provincial Employment related with the sector will be and Vocational Trainning updated periodically based MONE KOSGEB 2016 Centers will be made on the contributions of sector Social Partners functional. Technical representative institutions and Relevant infrastructure of vocational national vocational standards. Professional high schools will be Organizations renewed, high schools will be equipped in line with recent technological developments and adaptability of trainers at these schools will be increased. Developing human 2.5 Qualified labour force resources with new capacity will be increased for MoLSS qualifications that are KOSGEB Continuous production with high value İŞKUR needed in the current added. transition process will be provided. Labour force inventories will be prepared to 2.6 Labour force inventory determine the modality of of the sector will be defined İŞKUR MoLSS 2016 combatting unregistered based on provinces. employment or to increase the efficiency.

3. Unregistered employment will be reduced. RESPONSIBLE PARTNER MEASURE TERM EXPLANATION INSTITUTION/BODY INSTITUTIONS Informing employers and 3.1 Awareness raising employees on the benefits activities will be implemented MoLSS SSI Continuous of registered employmet regarding registered Social Partners will help promoting employment. registered employment. 110 Textile And Ready-Made Garment Sector A mixed model combining both dissuasive and incentive inspection 3.2 Effectiveness of approaches will be inspections will be SSI MoLSS 2016 adopted. In this framework, strengthened. guidance role of inspection will be emphasized besides increasing the number of inspectors. Ministry of The scope of Regulation 3.3 Payment of wages Finance on Payment of Wage, via banks will be ensured MoLSS 2016 Premium, Bonus and regardless of the number of Undersecretariat Every other Deserving via workers in the workplace. of Treasury Banks will be expanded.

4. Occupational health and safety awareness will be raised in the sector. RESPONSIBLE PARTNER MEASURE TERM EXPLANATION INSTITUTION/BODY INSTITUTIONS 4.1 The employers respecting the occupational health and safety regulations which Various support have low numbers of work Ministry of mechanisms will be accidents and occupational Finance developed for reducing diseases will be supported by MoLSS Undersecretariat 2016 the cost of enterprises the State through decreasing of Treasury operating in line with their occupational health and SSI occupational health and safety premiums gradually safety precautions. and paying them by the State budget. Employers will be 4.2 Counselling and guidance encouraged to take services on occupational MoLSS SSI 2016 measures regarding health and safety will be occupational health and developed. safety.

5. Clustering policies will be implemented in a planned way. RESPONSIBLE PARTNER MEASURE TERM EXPLANATION INSTITUTION/BODY INSTITUTIONS Ministry of Economy Infrastructure investments Ministry of regarding clustering 5.1 Eligible regions will be Development policies will be completed defined and infrastructure MoSIT Continuous rapidly. Budgetary investments will be made. Ministry of constraints will be taken Finance into consideration in this Development process. Agencies www.uis.gov.tr 111 Action Plans (2014-2016) Measures regarding Ministry of shortening the delivery Economy durations will be taken. 5.2 Clustering policies will Ministry of Competitiveness of be regulated by means Development regions will be determined MoSIT 2016 of providing advantage to and regional clustering enterprises. İŞKUR policies will be developed Development according to clustering Agencies potential and/or clustering analyses at present. Ministry of Economy Employers will be 5.3 Depending on the Ministry of encouraged to move to scope of clustering, travel/ Development clustering regions. Moving MoSIT 2016 transportation of labour force Ministry of costs will be reduced will be facilitated. Finance considering budgetary constraints. Development Agencies

6. Social responsibility standards will tried to be widespread. RESPONSIBLE PARTNER MEASURE TERM EXPLANATION INSTITUTION/BODY INSTITUTIONS Poor working conditions in the developing countries which are the suppliers of big purchasing companies are in the agenda of public opinion in developed countries. The increasing sensitivity of public opinion 6.1 Training and information Relevant has led purchasing activities on social Professional companies stipulating KOSGEB Organizations 2016 responsability standards will many conditions to be be organised in enterprises. NGOs implemented voluntarily. This measure aims at increasing the awareness of companies on these conditions and their inspection precedures as well as gathering the companies to act in concert. Social responsibility standards are sought by big purchasing groups to Relevant sell goods to these groups. 6.2 Activities on social Professional With this measure, export responsibility activities for KOSGEB Organizations 2016 and employment will be SMEs will be supported. NGOs increased by supporting the activites of companies in order to adapt the standards. 112 Tourism Sector TOURISM SECTOR

1. Current employment opportunities in the sector will be developed and employment conditions of the workers will be improved. RESPONSIBLE PARTNER MEASURE TERM EXPLANATION INSTITUTION/BODY INSTITUTIONS Due to limitation of weekly 1.1 Weekly working hours will working hours, flexible Ministry of Culture be limited to 55 hours in case MoLSS 2016 working will be ensured and Tourism of overtime work or balancing. and employment will be increased. By the mandatory 1.2 In order to follow entry card access system at and exit hours of employees, workplaces which have card access system will be Ministry of Culture MoLSS 2016 tourism management mandatory at workplaces and Tourism license, follow-up of which have tourism entry and exit hours of management license. employees will be ensured. 1.3 Balancing period will be Due to extension of the regulated as 4 months and duration of balancing, Ministry of Culture this period can be extended MoLSS 2016 increase in the quality of and Tourism up to 6 months with collective flexible working will be agreements. ensured. Due to enhanced child 1.4 Child care services will be MoFSP care services for workers in enhanced in provinces where Ministry of Interior 2016 tourism sector, increase of tourism is intense. MoNE women employment will be ensured. 2. 2. Labour force quality of the sector will be enhanced. RESPONSIBLE PARTNER MEASURE TERM EXPLANATION INSTITUTION/BODY INSTITUTIONS 2.1 All accommodation Accommodation facilities facilities will be incorporated Ministry of Culture will be rendered more Ministry of Interior Continuous under “Unique Document and Tourism quality and cannonical. System”. Development of qualified 2.2 Certification system will be labour force will directly be Ministry of Culture made functional by identifying VQA 2016 contributed by increasing and Tourism the vocational standards. the number of certificated tourism workers. All workers in the sector Ministry of Culture will be provided certificates 2.3 The process of vocational and Tourism until 2023. Qualified staff qualifications, assesment and VQA 2016 employment rate will be evaluation will immediately be MoNE one of the main criteria in completed. CoHE determining the star level of touristic enterprises. www.uis.gov.tr 113 Action Plans (2014-2016) Education programmes 2.4 Education programmes Ministry of Culture oriented towards will be prepared considering and Tourism development and acquisition the employer and employee MoNE 2016 of foreign language demands and data acquired İŞKUR qualifications and vocational from labour force inventory. skills will be prepared. The qualified labour force 2.5 Under the structure of demanded by tourism vocational high schools, sector will be provided vocational schools and by formal education. faculties, new departments MoNE In this way, registered Ministry of Culture will be established in parallel Continuous employment and CoHE and Tourism to the labour force demands employment of Turkish to be created according to citizens will be increased the medium and long term in the sector in which projections of the sector. foreign and unregistered employment is widespread. Employment of quality labour force will be ensured 2.6 Labour force training Ministry of Culture İŞKUR 2016 in the sector by providing courses will be established. and Tourism vocational education as well as formal education. Unemployment of seasonal 2.7. Training programmes workers at the end of the for seasonal workers will be Ministry of Culture season will be prevented provided via Unemployment İŞKUR Continuous and Tourism and an important Insurance Fund at the end of contribution will be given to the season. their vocational education.

3. Unregistered employment and foreign illegal work will be prevented. RESPONSIBLE PARTNER MEASURE TERM EXPLANATION INSTITUTION/BODY INSTITUTIONS Undersecretariat The scope of Regulation 3.1. Payment of wages of Treasury on Payment of Wage, via banks will be ensured MoLSS Ministry of 2016 Premium, Bonus and Every regardless of the number of Finance other Deserving via Banks workers in the workplace. SSI will be expanded. MoLSS 3.2. By studying on Wage scale for occupations Ministry of the precedent wages, in the sector will be SSI Finance 2016 unregistered payment will be determined depending on prevented. Ministry of Culture occupation certificates. and Tourism Foreign illegal employment 3.3. Efficiency of inspections Ministry of Culture will be reduced by will be increased in order to MoLSS 2016 and Tourism increasing the efficency of prevent foreign illegal working. inspections in the sector. 114 NOTES www.uis.gov.tr 115 NOTES