Exorbitant rents accelerated employee migration in Istanbul
The Istanbul Metropolitan Municipality (IMM) Regional Employment Office investigated the effect of increasing the minimum wage on employment in 317 companies in the city.
According to the statement on the results of the investigation, it was revealed that the increase in the minimum wage caused difficulties in finding skilled labor.
In the statement; “Almost all companies in all sectors have difficulties finding skilled labor with the qualifications they are looking for. Companies have difficulties finding professional, qualified, expert and experienced-senior personnel in their production, commercial and administrative processes.
‘HAD A PROBLEM FINDING EXPERIENCED STAFF’
According to research, when the salary hierarchy between blue-collar and white-collar workers narrows in some companies; White collar workers left their jobs due to low motivation, productivity, and performance.
On the other hand, companies from all sectors had difficulties finding professional, qualified, expert and experienced-senior personnel in their production, commercial and administrative processes.
According to the third head of the investigation, rising cost of living, exorbitant rents and fear of earthquakes triggered labor migration from Istanbul. Recruitment in Istanbul became more difficult with each passing day.
‘MINIMUM WAGE EXPECTATION IN JULY 11 Thousand TL’
Other items highlighted in the study were listed below:
“The minimum wage expectation of companies to be determined in July is around 11 thousand TL.
– It is widely believed that the increase in the minimum wage increases informal work in some sectors such as accommodation-food, textiles and manufacturing, and especially in small and medium-sized enterprises.
– High inflation and the erosion of income it causes; negatively affects the motivation and performance of employees and the productivity of companies. The increases in the minimum wage did not affect the hiring decision of the majority of companies (77.9%).
– Minimum wage increases did not make it easier for businesses to find employees. The reason for this is that rising inflation erodes the rise.
– Companies claim that jobseekers see the increase in the minimum wage as insufficient and are demanding higher wages.
THE 35 PERCENT CANNOT REFLECT THE INCREASE IN THE MINIMUM WAGE TO ITS EMPLOYEES
– 35 percent of the companies interviewed could not reflect the rate of increase of the minimum wage to the wage increases of their other employees.
– While two-thirds of companies said they had difficulty reflecting rising input costs in their prices last year, this rate has fallen to one-third this year.
– Compared to last year, companies have less difficulty increasing the prices of their products. Businesses are getting used to life of high inflation. There is a tendency to solidify into high inflation.
– Shortage of qualified labor by sectors.
– Companies have a harder time finding staff in Istanbul compared to other provinces. The reason is a higher cost of living and more options due to more companies and job opportunities.
– Especially because of the high rent increases, most of the employees who live in rent have problems with their landlords.
‘RENTALS ACTIVATE IMMIGRATION FROM ISTANBUL’
– Rising cost of living, exorbitant rents, fear of earthquakes; triggers labor migration from Istanbul.
– It is stated that there is a strong demand for assignment-transfer to branches outside Istanbul by the employees of large companies operating throughout Turkey.
On the other hand, candidates who want to migrate to Istanbul to work and apply for a job request accommodation from companies.
– Another solution for the market is for companies, especially in the manufacturing and logistics sector, to relocate their activities to provinces adjacent to Istanbul.
‘DIFFICULTY TO FIND QUALIFIED LABOR’
– Two thirds of companies plan to increase their employment in the next 6 months, but have problems finding the skilled labor they are looking for. Almost all companies in all sectors have difficulties finding skilled labor with the qualifications they are looking for. Companies have difficulties finding professional, qualified, expert and experienced senior staff in their production, commercial and administrative processes.” (PHOENIX)