Urban transformation fuels record construction employment in May

According to TurkStat data, the number of paid employees in the construction sector reached 1,933,256 in May, the highest May level on record. Experts note that urban transformation projects played a major role in this increase.

Scraper SystemJuly 27, 2026, 12:14 PM

Urban transformation fuels record construction employment in May

According to data from the Turkish Statistical Institute (TurkStat), the number of paid employees in the construction sector increased by 1.2 percent annually in May, reaching 1,933,256. This figure marked the highest May level on record.

Total paid employees in industry, construction and trade-services sectors rose by 0.5 percent year-on-year in May to 15,970,105. While the industrial sector saw a 3.2 percent decline, the trade-services sector recorded a 2.3 percent increase.

A breakdown of employment in the construction sector shows that 1,266,543 employees worked in building construction, 248,252 in civil engineering construction, and 418,461 in specialized construction activities. Annual growth rates in these groups were 1 percent, 4 percent, and 0.1 percent respectively.

Sector representatives emphasized that urban transformation activities had a significant impact on this record employment level. As of July, the number of independent units undergoing urban transformation in 39 districts of Istanbul has exceeded 276,000.

Prof. Dr. Ali Hepşen, a faculty member at Istanbul University's School of Business, noted that the number of paid employees in construction reaching the highest May level on record indicates the sector's continued vitality, and said, "This data shows that the recovery in the construction sector is continuing not only on the production side but also on the employment side."

Hepşen, pointing out that employment growth occurred at different paces in sub-sectors, said: "The 4 percent increase in civil engineering construction reflects the impact of infrastructure and public investments, while the 1 percent rise in building construction indicates a more limited momentum. The 0.1 percent increase in specialized construction activities, on the other hand, shows that a cautious outlook persists in some areas of the sector."

Noting that urban transformation projects, the high momentum in housing sales, and reconstruction activities in the earthquake zone have been the main factors supporting employment in recent years, Hepşen added: "On the other hand, the still-tight financing conditions and the inability of new housing production to accelerate as desired stand out as factors limiting stronger employment growth."

Engin Keçeli, President of the Association of Builders and Real Estate Developers (İNDER), stated that production in the construction sector has accelerated compared to previous years, and both new projects and urban transformation have been effective in employment growth.

Keçeli noted that after April, the summer months are a period of intense work for construction, and made the following remarks: "We are the most dynamic sector; we work nonstop. Currently, seasonally, we are in our fastest working period. The increase in the number of apartments granted construction permits already signaled that construction activities would accelerate. Employment data confirmed this. Besides urban transformation, one of the main reasons for increased production is greater predictability. We are in a more predictable period regarding both foreign exchange and cost increases."

Urban transformation fuels record construction employment in May