As Turkey’s economy slows down from the unofficial Coronavirus quarantine, many workers in Turkey’s grey economy are in deep trouble. With no legal or insurance protections, many are facing extreme hardship. In the last few weeks many undocumented workers have lost their job. However, the ones who were lucky to keep their jobs now face the risk of catching Coronavirus.
The Turkish government has offered no economic help for those in the grey economy. Without appropriate actions, poverty, crime, homelessness and other problems will increase in the short term.
It is estimated that around 11 million people work in the grey economy to make a living. Many say that they have no choice. Turkey’s lingering unemployment problem is the main reason. Thus, many must choose between having some money or no money.
Many Turkish workers work in the grey economy because that is the only option for them. Around 9 to 10 million Turkish citizens work “under the table.”
Furthermore, it is estimated that over 1 million foreign workers work illegally in Turkey. They come from Central Asia, Syria, Iraq, Iran, Ukraine and many more countries. Many of these workers are making less money than their Turkish counterparts.
Many Syrian workers are unregistered in Turkey. In fact, figures show that over 400,000 Syrians work in the Turkish grey economy. Many of these people’s wages are in cash. Now, with the economy in semi lockdown, many are unable to work and earn money.
Many undocumented workers work in tourism, textiles, and agriculture. Also, many work in the service sector, too.
Why are there many workers in the grey economy in Turkey?
- Bureaucracy, regulations and red tape
- High unemployment forces many to seek other ways to earn money
- Taxation
- Corruption
- Intense competition in some sectors with thin margins pushes some employers to cut corners. Thus, workers are not in the Social Security system.
- Lack of opportunities
In conclusion, Turkey’s Grey Economy Workers are in Deep Trouble. If there is no help from the government, the unofficial unemployment rate could top 40%. The government needs to act fast. However, they may do very little. The main reason is that they are struggling with other issues.
