A confluence of economic headwinds is impacting Turkey’s labor market, with over 403,000 workers losing their jobs in three key sectors – textiles, apparel, and leather – according to recent data from the Social Security Institution (SGK). The losses reflect a broader struggle for these traditionally labor-intensive industries, facing both domestic challenges and increasing competition from abroad. The situation underscores the vulnerability of Turkey’s manufacturing base as it navigates a shifting global economic landscape, and raises concerns about the future of employment in these vital sectors.
The SGK statistics, reported by Sözcü, reveal a significant contraction within these industries. Over the past three years, 10,746 businesses have closed their doors, contributing to the substantial rise in unemployment. The crisis isn’t simply a matter of businesses failing; it’s a shift in production, with companies increasingly relocating to countries like Egypt and Tunisia, where production costs are lower. Perhaps more concerning is the erosion of Turkey’s market share in Europe, traditionally a key export destination, now being overtaken by China. In the last year alone, Turkey lost ground to Chinese competitors in 44 out of 97 product categories, signaling a worrying trend for the nation’s manufacturers.
A Third of the Workforce Lost
The impact on workers has been stark. Between 2022 and 2025, the textile sector alone saw 137,483 job losses, alongside the closure of 1,843 businesses. This represents a 28% decrease in employment within the sector. The apparel industry fared no better, with 8,993 businesses shuttering and 239,222 workers losing their jobs during the same period. The leather industry also experienced significant setbacks, with 792 workshops closing and 26,354 individuals left unemployed. The scale of the job losses—over 403,000 in total—highlights the severity of the crisis and its widespread impact on Turkish families and communities.
The challenges facing these sectors are multifaceted. Rising energy costs, inflation, and a fluctuating Turkish lira have all contributed to increased production expenses, making Turkish goods less competitive in international markets. Changing consumer preferences and the rise of fast fashion have set pressure on manufacturers to adapt quickly and innovate, a challenge many smaller businesses struggle to meet. The Turkish Statistical Institute (TurkStat) reported in February 2024 that the unemployment rate in Turkey stood at 8.3%, a figure that likely underestimates the true impact within these specific industries.
Government Support Falls Short
The Turkish government has implemented measures to support these industries, including financial assistance through the Unemployment Insurance Fund. However, these efforts appear to have had limited success. A law enacted in late 2025 aimed to provide support to textile and apparel businesses to retain employees, but the funds allocated were deemed insufficient by many industry stakeholders. Changes to the Employment Protection Support Program, specifically the removal of a 250-employee limit for larger businesses, failed to stem the tide of job losses. In fact, approximately 40% of the job losses occurred within companies employing 250 or more workers, suggesting that the support program was not effectively reaching those most in need.
Experts suggest that a more comprehensive approach is needed, one that addresses the underlying structural issues facing these sectors. This includes investing in research and development, promoting innovation, and improving access to finance for small and medium-sized enterprises (SMEs). Strengthening trade agreements and diversifying export markets could help reduce Turkey’s reliance on the European market and mitigate the impact of competition from China. The Turkish Exporters Assembly (TIM) has been actively lobbying for government support to address these challenges, calling for measures to reduce production costs and improve competitiveness.
The Rise of Chinese Competition
The increasing dominance of China in the global textile and apparel markets is a key factor driving the crisis in Turkey. Chinese manufacturers benefit from economies of scale, lower labor costs, and significant government support. This allows them to offer products at prices that Turkish companies struggle to match. The loss of market share in 44 out of 97 product categories demonstrates the extent of this challenge. Industry analysts warn that unless Turkey can address its competitiveness issues, it risks losing further ground to China in the years to come.
The situation is particularly concerning for smaller businesses, which lack the resources to invest in new technologies and compete on price. Many are being forced to close down, leaving thousands of workers unemployed. The long-term consequences of this trend could be significant, potentially leading to a decline in Turkey’s manufacturing capacity and a further increase in unemployment. The government’s ability to effectively address these challenges will be crucial in determining the future of these vital sectors.
Looking ahead, the Turkish government is expected to announce further measures to support the textile, apparel, and leather industries in the coming months. A key focus will likely be on attracting foreign investment and promoting exports to new markets. The next official update on unemployment figures is scheduled for release by TurkStat in June 2024, providing a further indication of the impact of these economic headwinds. We encourage readers to share their thoughts and experiences on this critical issue in the comments below.
