RELATIONSHIP BETWEEN EMPLOYMENT AND GROWTH BY SECTORS IN TURKEY

Abstract

Economic growth is the most important of the economic goals of countries. The policies implemented generally focus on the sustainability of economic growth. As a result of economic growth, employment is expected to increase. If employment does not increase after economic growth, employment-free growth occurs. In the study, the economic growth and employment data between the years 1992-2020 in Turkey and the economic growth that does not create employment are emphasized. For this purpose; The relationship between employment rates and economic growth rates of service, industry and agriculture sectors, which are the main sectors, has been investigated.Augmented Dickey Fuller Unit Root Test was applied to the variables used. It has been concluded that employment variables are stationary in the first degree and the economic growth variable is stationary at the level value. The causality relationship between the established econometric model and the variables of economic growth and employment was investigated with the Granger Causality Test. According to the Granger Causality Test results, it has been determined that economic growth causes industry and service employment. No causality relationship was found between economic growth and agricultural employment. As a result, it has been understood that unemployed growth is valid in the agricultural sector.