Labor participation in companies in Turkey is declining

The Statistical Institute of Turkey has today published the statistics of small and medium-sized enterprises for 2021. The statistics showed that the share of labor in the total income of enterprises, especially SMEs, fell sharply.

It was observed that there was a large gap between the increase in added value produced by companies in Turkey and the progress of labor income. Especially in the period from 2020 to 2021, the labor share decreased from 44.2 percent to 37.6 percent.

THE SHARE OF WORK IS DECREASING

While the average value added per employee for SMEs was TL 15,000 in 2009, this value increased to TL 78,000 in 2021.

However, the ratio of labor cost to value added has been on a downward trend since 2016. This means that labor’s share of production revenue has fallen sharply in recent years.

While the ratio of personnel cost to value added, which was 48.63 percent in 2009, increased through 2016, it reached 55 percent this year. After that, this rate decreased from year to year. The rate, which was 44.2% in 2020, dropped to 37.6% in 2021.

GREATER ADDED VALUE IN MEDIUM-SIZED COMPANIES

Among the groups of SMEs, the highest added value per employee for 2009 and 2021 was realized in medium-sized companies with 29 thousand TL and 173 thousand TL, respectively, for the same years these values ​​were 19 thousand TL and 86 thousand TL for small companies. , and for micro-enterprises 8 thousand TL and 28 thousand TL.

The personnel cost per employee in SMEs was TL 40,000 in 2021. While the average personnel cost per employee for SMEs was TL 8,000 in 2009, this value increased to TL 40,000 in 2021.

While the highest personnel costs per employee for 2009 and 2021 among the SME groups were in medium-sized companies with TL 15,000 and TL 68,000, respectively, for the same years these values ​​were TL 11,000 and TL 49,000. TL for small-scale small businesses and for micro-scale businesses, while it was realized as 4 thousand TL and 21 thousand TL.