One of the main challenges that the Turkish economy faces is high unemployment rates that are persistently high, hovering around 10 percent. Previous research also establishes that the labor market is becoming increasingly dynamic. Following a discussion on the dynamics of unemployment, we aim to shed light on the structural problems that shape the labor market in Turkey. Among these problems are low skill levels, persistent regional disparities, high informality and an increasing labor force. In the second part of the chapter, we focus on the labor force participation rates of women in Turkey, which are structurally low, yet are on the rise since 2005. Recent studies show that in explaining this rise, the increasing participation rates by education levels are relatively more important than increasing education levels among women. Paradoxically, this increase has transpired under the rule of a government which has a heavily conservative discourse in relation to gender roles and women’s rights. We conclude the chapter by discussing the main challenges to battling high unemployment, which is not expected to decrease substantially in the near future.