Youth employment creation is a critical component of a country’s long-term economic stability and growth. There are difficulties in Turkey in employment generation in general, in youth employment generation in particular. Turkey had a severe financial crisis in 2001. The recovery started in 2002 and growth continues to date. Turkey has grown continuously in twenty-one consecutive quarters. The recovery came without jobs in 2002-2004, however. In 2005-2006, the overall unemployment rate finally started to come down. It was 9.9% in 2006. This positive development was not reflected in youth unemployment rates, however. Youth unemployment rate stagnated at 17-18% in the past two years. This is the only labour market indicator that Turkey is on par with the European Union. Note that, new entrants lack a major component of labour market skill, experience. They will have a harder time to find jobs when there is a recession.

In addition, despite the move from five to eight years of mandatory schooling, the problem of child labour still needs to be addressed. Increasing urban youth unemployment rates in recent years brought political recognition and a sense of urgency to the problem of youth employment generation. This is a challenge shared by the European Union (EU) countries, as well. Policies directed at increasing youth employment are preconditions for long-term poverty eradication and social inclusion.