Full Breakdown
Decline in Employment in the Global Garment Industry
10/10/2025, 3:03:32 PM
Employment Crisis in the Albanian Textile Sector
The Albanian textile and footwear industry is experiencing a significant employment crisis, with a reported 22% reduction in workforce from the second quarter of 2023 to the second quarter of 2025. Official INSTAT data indicates that the employment index in garment factories has dropped to 83.93 points, down from 92.31 points in the previous year, reflecting an 8% decrease in employees. The footwear and leather sectors have also been adversely affected, with a 7% decline in employment. This downturn is attributed to a combination of internal factors, such as increased minimum wages and insurance contributions, and external pressures, including competition from countries like Turkey and Morocco, as well as a slowdown in consumer demand in key European markets like Italy and Germany.
Automation and Gender Disparities in Bangladesh
In Bangladesh, the garment sector is witnessing a troubling trend where female employment is declining sharply, particularly in urban manufacturing. Despite an overall increase in female employment from 1.82 crore in 2013 to 2.37 crore in 2024, urban female employment in manufacturing has halved, dropping from 38 lakh to 19.5 lakh. This decline is primarily due to automation, as factories invest in advanced machinery that reduces the need for labor, particularly in low-wage, entry-level roles predominantly occupied by women. Studies suggest that up to 48% of jobs in the cutting section are at risk of automation, exacerbating the challenges faced by women in transitioning to new roles due to skill disparities.
Impact of Tariffs on Sri Lanka's Garment Exports
Sri Lanka's ready-made garment (RMG) sector is also under threat, with the World Bank projecting a potential 12% annual reduction in exports to the US due to a new 20% tariff. This could lead to an estimated loss of 16,000 jobs, disproportionately affecting unskilled workers and women. The World Bank's report highlights that while the overall impact on the current account is manageable, the vulnerability of low-skilled workers remains a significant concern. The anticipated decline in RMG exports could amount to $220 million, further straining an already challenged industry.
Official Statements & Responses
Industry leaders in Albania have expressed concern over the ongoing employment decline, attributing it to rising operational costs and increased competition. In Bangladesh, experts emphasize the need for targeted training programs to equip women with transferable skills to adapt to the changing job landscape. Meanwhile, Sri Lankan officials are monitoring the impact of US tariffs closely, with discussions ongoing about potential strategies to mitigate job losses.
Criticism & Opposition
Critics argue that the reliance on low-wage labor in the garment industry makes these sectors particularly vulnerable to external shocks, such as tariffs and automation. Labor rights advocates in Bangladesh have called for urgent reforms to protect female workers and ensure equitable access to training and employment opportunities. In Sri Lanka, there are concerns that the government is not doing enough to support workers affected by the impending tariff changes.
Verbatim Quotes
- “But the leather and footwear sector is the hardest hit.” — Local news provider Monitor
- “'Women are often the first to lose their jobs to automation in the garment industry because they are concentrated in low-wage, entry-level roles.” — Labour Force Survey 2024
- “The report estimates that the tariff could decrease Sri Lanka’s RMG exports to the US by $220 million compared to the existing projection.” — World Bank Report
This article highlights the interconnected challenges facing the global garment industry, particularly regarding employment, automation, and the impact of trade policies.
