Unemployment means the partial inactivity of human resources and the slowing down of development. Unemployment also increases income inequality and poverty. Political and social will is necessary but not sufficient in order to decrease unemployment in the struggle against unemployment. The second step of an efficient struggle against unemployment is the correct determination of the factors causing unemployment. Only in this way can it be possible to develop efficient policies. It is also a fact that there is no consensus, either among the economists or on a social level regarding the causes of unemployment or the policies that need to be implemented in order to alleviate it. The struggle with unemployment and the success that can be accomplished is, in a sense, open to the impact of the values of sharing and solidarity unique to each society. In this study titled, “The Institutional Structure of the Labour Market of Turkey and Unemployment”, the issue of unemployment has been examined in a detailed manner under the following subtitles: “Policies for Struggling With Unemployment”, “The Layered Structure of the Labour Market”, “Effect of the Employment Taxes on the Demand for Labour”, “Processes of Wage Determination” and “Job Hunting and Incompatible Matching”. The report, “The Institutional Structure of the Labour Market of Turkey and Unemployment” has been prepared in the framework of the Employment and Social Security Working Group’s activities affiliated to TÜSİAD’s Social Affairs Commission and has been written under the supervision of Prof. Dr. Seyfettin Gürsel with Enver Taştı, the Head of Workforce, Services, Price Statistics and Indexes Department of the State Statistics Institute (DİE); Didem Sezer, the Branch Manager of Workforce Statistics of DİE; Assoc. Professor Haluk Levent; Kenan Orhan, Statistician in the Manufacturing Industry Statistics Branch of DİE; Assistant Professor Doctor İpek İlkkaracan; Arzu Yörükoğlu Eratak, Expert at the Workforce Statistics Branch of DİE; Assistant Prof. Dr. Mustafa Ulus and Hatun Ezberci, Statistician at the Workforce Statistics Branch of DİE.