Turkey Hit Hard by 2024

Turkiye by numbers last year

As 2024 concludes, Turkey's economic landscape reflects significant developments in employment, inflation, taxation, salaries, and average income. However, despite government efforts, many citizens continue to struggle to earn enough for a comfortable quality of life.

Employment and Economic Rebalancing

Turkey’s unemployment rate was 8.6% as of September 2024, with approximately 3.1 million individuals actively seeking work. However, a critical concern is the 30% increase in the number of discouraged workers who have stopped seeking employment since mid-2023. This trend highlights the growing difficulty in securing stable and well-paying jobs, particularly for young people and recent graduates (Reuters).

The informal job market has grown, as many workers resort to lower-paid, unregulated jobs, further exacerbating income inequality and limiting access to benefits such as social security and healthcare.

Inflation and Rising Living Costs

Turkey’s annual inflation rate was 44.38% in December 2024, down from 47.09% in November, reflecting slight stabilization. However, essential goods and services continue to see price increases outpacing wage growth, placing pressure on household budgets. Rent, utilities, and food prices have surged, with housing costs in major cities like Istanbul rising by over 55% in 2024 alone (Reuters).

Despite the central bank’s inflation target of 44% by year-end, economic analysts warn that real inflation felt by consumers may be higher, particularly in urban areas.

Taxation and Fiscal Pressures

In response to inflation, the government raised fuel taxes by 6% in December 2024 to increase fiscal revenues. While necessary for budget control, these tax hikes disproportionately affect low and middle-income households by increasing transportation and energy costs, contributing to the rising cost of living (Reuters).

Wages and Average Income

The average monthly gross salary in Turkey for 2024 is approximately 26,402 TRY (about $713 USD), with the net monthly average salary after taxes and deductions at 21,076 TRY (around $569 USD). However, this is insufficient to cover the cost of living in major urban areas.

The minimum wage was raised to 20,002.50 TRY per month (approximately $620 USD) in 2024 to combat inflation, but even with this increase, many workers find it difficult to maintain a good quality of life (Turkish Labor Law).

The Struggle for a Good Quality of Life

Despite wage adjustments, purchasing power remains low, and many families are forced to cut back on non-essential expenses. A family of four in Istanbul requires at least 45,000 TRY per month to maintain a moderate standard of living, far above the average salary. The widening gap between wages and living costs forces many Turks to work multiple jobs or rely on family support.

Middle-class citizens report significant difficulties in saving or investing, with rising credit card debt and personal loans becoming common. Interest rates on personal loans reached 60% annually, deterring borrowing but also limiting economic mobility.

Conclusion

In summary, while Turkey’s economic policies in 2024 aimed at stabilization, many citizens continue to grapple with financial insecurity. Wage growth has not kept pace with inflation, taxation policies strain lower-income households, and job market challenges persist. For a substantial portion of the population, earning enough for a comfortable life remains a significant hurdle, pointing to the need for broader structural reforms and targeted social support programs.