The analysis of labor costs in business services in Turkey shows a consistent upward trend from 2013 to 2023. In 2023, the labor cost stood at 593.34 billion New Turkish Liras. The year-on-year variation percentages reveal a high growth rate in earlier years, with a steady decrease observed more recently. For example, the year-on-year percentage change was 20.37% in 2019, but it decreased to 1.41% in 2020, and remained lower with 4.88% in 2023. In terms of the Compound Annual Growth Rate (CAGR), there was also a downward trend, beginning at 18.15% in 2014 and dropping to 7.32% in 2023.
Predictions for 2024 and onwards suggest that labor costs will continue to rise but at a slower pace. The forecast for 2028 indicates a 5-year CAGR of only 3.12%, which is considerably lower than historical growth rates. The overall growth from 2024 to 2028 is expected to be 16.59%.
Key future trends to watch for include the potential impact of macroeconomic factors such as inflation, government labor policies, and technological advancements in business services. These factors could either spur growth or act as a restraint on labor cost increases in Turkey's business services sector.
