Labour policies may contain Turks' disenchantment

Subject

Piecemeal measures to boost employment, job security and incomes.

Significance

The administration is concerned to keep citizens content with the state of the economy ahead of elections in 2019. Its policies may have a positive impact on employment and the satisfaction of the workforce (particularly subcontracted workers) in 2018.

Impacts

• Short of a crisis and recession, economic discontent is unlikely to become so deep or widespread as to cause large-scale social upheavals.
• Steps to make labour markets more flexible and reform the severance-pay system and civil service may remain shelved at least until 2020.
• The cost of employment subsidies to the public purse could become significant, particularly if increased or made permanent.