Turkey Labor Market for the Effect of Regulation of the State Unemployment: 1988-2018 Periods of Intervention Analysis

Employment and unemployment, which are two important indicators of the labor market, also provide important view into the macro state of the economy. Employment and unemployment are one of the most important problems in Turkey like most states in the World. Especially since the 1970s, an increase in the unemployment rates and economic problems accompanied by the decrease in the employment all over the world have given rise to the studies and regulations on these problems. The relationship between the employment and labor market has an important issue and is regulated by legislations. The labor regulations are categorized as active and passive labor market policies and regulations. Active labor market regulations focus on the target of creating jobs to the unemployed population in the labor market. Therefore, it focuses on improving the qualifications of job seekers, increasing employment performance and creating new jobs. Passive labor regulations focus on issues such as unemployment benefits and unemployment insurance. In our country, there are many regulations for labour market. These regulations entered into force in 2003. The Labour Law No. 4857 and Turkish Employment Agency Law No.4904 are two of these regulations which led to major changes in the labor market in Turkey. With the entry into force of Law No. 4857, an important step towards the flexibility of the labor market has been taken. Issues such as the dynamic infrastructure of working life, technological developments, competition, the creation of new working patterns by changing existing working styles have led to the adoptation of Labor Law No. 4857. With this law, the flexibility of the labor market has come to Turkish agenda. This law, which considers the rights of the employer and the workers with the needs of the market, has tried to regulate working life. It is aimed to remove the obstacles in determining the working conditions according to the needs of the employer and the employee. The Labor Law No. 4904, which was enacted on the basis of Article 90 of the Labour Law No. 4857, aimed to fill the existing gaps in the labor market and introduced new regulations regarding Turkish Employment Agency. Regardingly, it was determined that the Employment Agency should not limited only to create employment and employment services; also should provide services about training, supervising to create skilled workforce. This study evaluated the effects of the Labour Law No. 4857 and Turkey Business Organization Law No.4904 entered into force in 2003 on unemployment through the Intervention Analysis Method for the 1988-2018 period.