Textile and Ready-to-Wear Employment Shows Signs of Recovery

Good news came in June from the textile and ready-to-wear sectors, which have long been the subject of discussions about job and company losses: total employment exceeded 858,000, and the number of companies reached 53,553. Industry representatives believe that the 3,500 TRY employment subsidy per worker and the credit support package tied to employment conditions were key factors behind this increase.

The textile and ready-to-wear sectors, which have lost more than 100,000 jobs in recent years due to high production costs, order losses and weakening export competitiveness, saw a surprise increase in June. While the number of employees declined again in May, both sectors recorded strong increases in June, fully offsetting the employment losses experienced during the first half of the year. According to data from the Social Security Institution (SGK), the number of employees in the textile sector, which stood at 343,625 in May, increased by 7,480 in June to reach 351,105. The monthly increase was 2.2%, while the number of companies operating in the sector also increased by 42 to 18,492. The increase was stronger in ready-to-wear. The number of employees, which stood at 493,998 in May, increased by 13,671 in June to reach 507,669. Thus, employment increased by 2.8% in a single month. The number of companies also increased by 187 to 35,061.

Support Measures Have Been Effective

When the two sectors are considered together, the number of employees increased from 837,623 in May to 858,774 in June. Thus, a net employment increase of 21,151 was recorded in just one month. The total number of companies also increased by 229 to reach 53,553. With the increase in June, the employment losses experienced during the first months of the year were fully offset. At the end of 2025, 845,904 people were employed in the textile and ready-to-wear sectors, while as of June, this figure had risen 12,870 above the year-end level. However, there has not yet been a similar recovery in the number of companies. The number of companies, which stood at 54,114 at the end of 2025, remained at 53,553 in June. Thus, a net 561 companies were lost during the first six months of the year.

However, industry representatives attribute the strong increase in employment in June not so much to a significant recovery in orders or business volume as to the impact of the support measures introduced. Under the Employment Protection Support Programme, businesses in the textile, ready-to-wear, leather and furniture sectors that maintain their employment are provided with 3,500 TRY in monthly support for every 30 premium contribution days. While the 250-employee limit under the programme was also removed, a new 250 billion TRY credit package was introduced on the condition that employment is maintained.

No Equivalent Increase Seen in Business Volume

Şeref Fayat, Chairman of the Türkiye Apparel and Ready-to-Wear Industry Council (TOBB), also said that the condition of maintaining employment under the support measures introduced for the sector was effective in the increase in employment seen in June. Stating that the 3,500 TRY support provided per employee played an important role in companies’ employment decisions, Fayat emphasized that maintaining employment was similarly one of the key criteria in the new credit package.

Fayat pointed out that the support mechanism does not operate based solely on a single month and explained that businesses that failed to meet the employment criterion during the first months of the year could make up for their losses in subsequent months and become eligible for the support. Fayat said, “Under the practice introduced at the beginning of the year, you could benefit from the support by maintaining employment during the November-December period. When you completed this during the year, employment support could also be calculated retroactively. In other words, even if you did not meet the target in January, February or March, if you reached the average in April, May and June, a retroactive calculation could be made. Therefore, it is possible that companies tried to increase their employment levels particularly in June.”

However, emphasizing that the increase in employment does not mean that orders or production in the sector increased to the same extent, Fayat said, “When we look at whether there is new business volume in the sector corresponding to this increased employment, frankly, we do not see it. Therefore, rather than explaining the picture as a significant recovery in demand or orders, it would be more accurate to attribute it to efforts to benefit from the existing support measures and meet the employment criteria.”

Balanced Outlook in Exports and Production

Toygar Narbay, Chairman of the Turkish Clothing Manufacturers’ Association (TGSD), also said that the 3,500 TRY support was effective in increasing employment. Pointing to a more balanced outlook in exports and production compared with the previous period, Narbay stated that the decline in exports remained around 1.5–2%, while an increase was observed in textile volumes. Recalling that they had expected production to stabilize in 2026 last year, Narbay said that the first-half figures supported this forecast.

However, stating that they were more cautious about the second half of the year, Narbay noted that the PMI falling below the level of 50 again indicated a weakening in expectations. Narbay said that there could be a limited loss in the second half, but that they did not expect a sharp decline in ready-to-wear exports, adding that they maintained their forecast that year-end exports would be in the range of USD 16–16.5 billion.

Narbay also emphasized that the sector expected support measures to be implemented not individually but within a comprehensive and long-term programme for a lasting recovery. Narbay said they viewed positively the decision to double the foreign exchange conversion support starting from October, stating, “Steps are being taken gradually, but they are progressing piece by piece. We want these measures to be implemented comprehensively from a three-year perspective. If the sector can see ahead, it can reflect this in its pricing and take more secure steps.”

The Loss of 100,000 Jobs Has Yet to Be Recovered

Although the increase in June points to an important slowdown in the decline for the sector, the long-term losses have not yet been recovered. While 959,395 people were employed in the textile and ready-to-wear sectors in December 2024, employment stood at 858,774 as of June 2026. Accordingly, the net employment loss over the past one and a half years still stands at 100,621.

The decline in the number of companies during the same period is also noteworthy. While 59,101 companies were operating in the two sectors in December 2024, this number fell to 53,553 in June 2026. Thus, 5,548 companies left the sectors over approximately one and a half years.

The loss was particularly concentrated in ready-to-wear. Between December 2024 and June 2026, the number of companies in ready-to-wear decreased by 4,579, while employment fell by 67,015. In textiles, 969 companies and 33,606 jobs were lost during the same period. This picture shows that despite the strong increase in June, the sectors remain significantly below their scale at the end of 2024.