Turkey’s textile and apparel industry, long considered one of the pillars of the country’s manufacturing economy, is experiencing one of the most challenging periods in recent years. New data emerging from the sector reveals a sharp contraction in employment and a significant rise in company closures over the past three years.
The industry, which historically generated strong export revenues and supported large-scale employment, is now under increasing pressure due to rising production costs, weakening domestic demand, and slower growth in key export markets.
Rising Closures and Job Losses in the Sector
Recent figures indicate that the number of textile and apparel businesses shutting down in Turkey has reached alarming levels. Over the past three years, 9,936 companies operating in these two sectors have closed their doors.
This contraction has had a direct impact on employment. In just one year alone, 113,491 workers lost their jobs in the textile and apparel industries.
Looking at a longer timeline, the sector’s employment has declined dramatically since 2022. At the end of that year, the textile and apparel workforce stood at 1,222,609 employees. By December 2025, this number had dropped to 845,904 workers.
Nearly One Third of Workers Lost Their Jobs
These figures reveal a striking reality: nearly three out of every ten employees in Turkey’s textile and apparel sectors have lost their jobs within the past three years.
For an industry traditionally recognized as one of the country’s largest employment providers, this decline raises serious concerns about the sector’s sustainability and competitiveness.
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Cost Pressures and Market Challenges
Industry analysts attribute the current difficulties to several structural challenges affecting manufacturers.
Rising Production Costs
Energy prices, labor costs, and financing expenses have increased significantly in recent years. Many companies, particularly small and medium-sized manufacturers, are struggling to maintain profitability under these conditions.
In addition, currency fluctuations and inflationary pressures have made it increasingly difficult for producers to plan investments and maintain stable production levels.
Weak Domestic Demand
Another challenge comes from declining purchasing power within the domestic market. As consumer spending slows, demand for apparel products has weakened, forcing many companies to reduce production volumes.
Export Market Slowdown
Turkey’s textile and apparel sectors are highly export-oriented. However, slower economic growth in key markets — particularly in Europe — has reduced order volumes for many Turkish manufacturers.
Competition from lower-cost manufacturing countries has also intensified, placing additional pressure on Turkish exporters.
A Critical Moment for the Industry
Despite the current challenges, industry experts emphasize that Turkey’s textile ecosystem remains one of the most advanced in the region. The country benefits from a strong manufacturing infrastructure, skilled labor force, and proximity to major European markets.
However, maintaining competitiveness will require strategic adjustments, including productivity improvements, technological upgrades, and stronger support mechanisms for manufacturers navigating the current economic environment.
For a sector that has long served as a backbone of Turkey’s industrial economy, the coming years may prove decisive in determining how successfully it adapts to changing global dynamics.
