How Boosting Manufacturing in Türkiye Is Creating Stable, Formal Jobs

The number of workers entering Türkiye's labor force is growing, but many - potentially as high as eight million people - are working informally, in jobs that are off-the-books and often lacking employment guarantees, legal protections, or access to recourse. While these roles may provide an income, this kind of informal employment leaves workers and their families vulnerable, perpetuates inequalities, and denies many people the stability and benefits that formal employment can provide.

To reduce informality in the country's labor market, the Formal Employment Creation Project (FECP) - financed by the World Bank and European Commission Development Fund - is helping Turkish firms with strong potential for job creation grow, invest, and hire. By improving access to financing for these firms, along with targeted support, this project is helping the country encourage small and medium-sized business expansion, particularly for manufacturing firms, while creating formal employment opportunities for both Turkish citizens and refugees.

As Production Grows So Does Employment

One of those businesses benefiting from FECP assistance is Kayseri-based Sersim, a company that began producing solid fuel stoves in the late 1970s and has grown into an international manufacturer exporting cooking and cooling appliances to 156 countries.

As Sersim's production has expanded over the years, so has the need for skilled workers like 32-year-old Cangül Osku. After years of moving between short-term jobs, Cangül found stability in her current role as a quality check controller on Sersim's production line - a position that opened after the company expanded operations through FECP-backed financing.

"Especially as a mother, working is a big advantage for me. It allows me to make decisions and build a life." she explains. "I see this job as a way to stand on my own feet."

Cangül's experience also reflects a broader shift in the country's labor market. More women are entering the workforce, even in traditionally male-dominated sectors like heavy industry and manufacturing. "The number of women working here is higher than in many other places," she says. "That makes a difference."

Since receiving support through FECP, the company's staff has expanded by nearly 500 people, from 1,700 to 2,300 workers. And the number of women employed in that time has increased 65%. As Muhammet Ali Keskendir, CFO of Sersim, explains: "Working with more people has enabled us to produce more value-added products, reach new markets, and increase our revenue in foreign currency terms despite global economic challenges. We see every new employee as an important part of our growth story."

Small Business, Big Impact

For Arya Halı, a carpet producer and exporter located in Gaziantep, the scale of job creation promoted by FECP may be smaller but no less important to those now employed. Thanks to recent investments in new finishing machinery bought with financing provided through the project, the company improved its quality and expanded production, which created new roles on the factory floor as well as in the back offices handling graphic design.

Demet Bozkurt took one of those positions, working as a carpet designer after being out of the workforce to focus on raising her son. "I felt an emptiness when I stopped working," Demet says. "When I came back, I felt complete again." She now spends her day creating patterns that are transformed into finished products and shipped to customers around the world. "We design, color, and prepare everything," she explains. "Then it is woven and sent to the customer."

For Demet, working is not only about income; it is also about independence and personal well-being, even relieving stress. "Working makes me feel stronger," she says. "It means I can contribute to my home."

"We started with no workers-just ourselves. Today, we have around 100 employees," emphasizes Ahmet Güneş, founder of Arya Halı.

By supporting manufacturers - big and small - to grow and hire, FECP is helping create more formal, stable employment across Türkiye, linking businesses to opportunity and people to possibility.