Overview of Turkey
Turkey is ranked as the 20th largest economy in the world according to the nominal GDP (Gross Domestic Product). The service sector is the dominant industry in Turkey with a share of 60.7%, followed by the industrial sector with 32. 3% and then comes the agricultural sector.
Total Population –84.17 Million
GDP – US $719.54 Billion (nominal, 21)
The economy is increasingly being driven by the industry and service sectors. Textiles, clothing, steel - iron, consumer electronics, locomotives, and wagons are some of the major economic sectors which have contributed to the gradual growth of Turkey's GDP that has been pegged at the US $2.7 trillion in terms of PPP, placing it as the 11th largest economy in the world with a per capita income of $32,278. The newly digitized economy has also opened up avenues in the telecommunications industry. The decision of telecommunication liberalization is one of the key factors behind the success of Turkey in the sector. Expats wishing to relocate or work on a remote basis can find a plethora of lucrative growth opportunities due to the country's free and open market. It is the 20th largest economy globally in nominal GDP with a per capita income of US $9,327.
From textiles to manufacturing, several sectors dominate the market of Turkey. Global ventures who wish to expand their businesses in Turkey can find many lucrative and emerging industries to invest in and outsource their services. Its luxury market has jumped up by almost 37%, creating an estimated US $3 billion revenue last year. The market also draws from its export and import trade with the United States.
A brief glimpse of the industries
The agricultural sector accounts for about 10% of the country's entire export. Owing to the rich topography and fertile soil, the country is known to produce many exotic vegetables and fruits such as hazelnuts, cherries, figs, olives, lemons, grapefruits, and almonds. Turkish fisheries are also one of the major contributors to the agricultural sector.
- The tourism industry is one of the most rapidly growing sectors in Turkey. Owing to the exotic locations, sceneries, warm beaches, luxury hotels, and culinary exquisiteness, the country has been ranked as the 6th most popular tourist destination. Although the industry has lately been affected by the recent terrorist attacks and internal domestic disputes, it bounced back in 2020. Since it's a flourishing industry and promises future growth, the government is willing to invest further in this sector.
- Turkey's manufacturing sector is vastly varied and produces several products. From steel-iron to textiles, locomotives, and electronic goods, manufacturing is one of the most lucrative production sectors of the country. It is one of the largest producers of TVs and home appliances. Textiles manufacturing is the largest contributor to this sector and provides millions of returns to the country every year.
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Cost of living in Turkey
The living expenses in Turkey are quite considerable, but it is still extremely affordable compared to the US and UK. The expenses largely depend on the city-specific locations. Istanbul is one of the favorites when it comes to expats. However, it is not the cheapest city in Turkey. Still, its affluent lifestyle, amenities, and cultural vibes make it the most important. Some of the affordable options will be Izmir and Ankara if you are on a tight budget.
Cost of Renting
The cost of renting in Turkey may vary depending upon the factors like the location of the house and the size. A one-bedroom apartment may cost around $240, and a three-bedroom apartment may cost around $427. The price of the house increases as the facility and lifestyle increase. The top sectors that are expected to hire in 2021 in Turkey are:
Top skills required in Turkey
Since the service sector heavily dominates the Turkish economy; therefore skilled professionals trained in specific fields are in high demand. From experienced doctors to teachers, investment bankers, the country required highly professional applicants.
- Bank Manager
- Law-related skills (Lawyers, Judges)
- Teaching skills and Academicians
City wise occupation wise
- Istanbul: - It is the largest city in Turkey and is called the cultural, economic, and historical hub of Turkey. Manufacturing, tourism, and entertainment sectors are some of the important sectors in this city. The annual salary around here is US $49,549.
- Izmir: - It is the third most populous city in the country and a metropolitan city. The main industries of Izmir are sports, media, and health and education industries. The annual salary around here is US $22,000.
- Ankara: - It is the capital city of Turkey and is the second-largest city of Turkey after Istanbul. The main industries are tourism, exports, and aerospace industries. The annual salary around here is US $37,800.
Turkey is an expensive destination, and the cost of hiring has been lately increasing owing to the increase in labor cost in 2021. From 221.93 points, the labor cost has been increased to 256.18 points in 2022. The cost of hiring depends on multiple factors, and companies willing to hire candidates on a remote basis or on-premises should keep these in mind,
- Relocation expenses
- Recruiting event costs
- Recruitment software fees
- Advertising expenses
- Referral incentives
- Transportation expenses
Salaries in Turkey
Different salary packages are given to candidates in different fields. Turkey's affluent lifestyle allows the candidates to earn enough in various fields and areas-
Employment laws in Turkey
Turkey is one of the members of the International Labor Organization, and it has proper laws and acts that protect the rights of the employees, given the working relationship is based on an employment contract.
- The Labor Act No. 4857 issued by the executive branch regulates employment contracts, workplace practices, and internal company regulations.
- Some mandatory provisions are-
- The minimum wage cannot be belowUS $325 (2,850.50 TRY).
- The overtime working hours are limited to 270 hours per year.
- Minimum 24 hours of rest period shall be given to employees in a week.
- The minimum age of employment is 18 years old (without any limitation).
- The laws grant proper maternity and pregnancy leaves to female candidates.
- The Collective Bargaining Agreements allow the employees to form trade unions and negotiate disputes.
How Can Skuad Help You with Hiring in Turkey?
With several legislations and rules to be followed while recruiting new employees, hiring processes in Turkey can turn out to be a bit prolonged and expensive. But with Skuad as your Employer of record partner in Turkey, you can acquire the best talent at minimal.