Export slowdown leaves over 5,000 garment workers unemployed in the Philippines

Since the beginning of this year, approximately 5,100 local garment factory workers across the Philippines have been laid off or forced to take leave, primarily due to weak overseas demand.

Maritess Jocson-Agoncillo, Executive Director of the Confederation of Wearable Exporters of the Philippines (Conwep), stated that at least nine factories have been affected, including Luenthai Philippines, the country's largest cotton textile exporter.

A total of about 4,577 workers have undergone retraining, with an additional 500 workers forced to take leave. This accounts for approximately 3% of the 182,600 workers employed by Conwep member companies. Among those laid off, Luenthai accounted for nearly half, with 2,000 job cuts, equivalent to 60% of its total workforce.

Jocson-Agoncillo mentioned that according to Luenthai, the company had to halt layoffs due to the sustained weak demand for its products for about two years. Luenthai operates manufacturing facilities in Clark Freeport Zone in Pampanga Province, as well as in Cebu, Tarlac, and Bataan provinces, collaborating with international renowned brands such as Ralph Lauren, Dillard's, Adidas, Uniqlo, Victoria's Secret, Coach, and Michael Kors.

Experts indicate that exporters have yet to recover to 2019 levels when exports of these goods amounted to $1.79 billion, higher than the $1.35 billion in 2023. The organization's latest data shows a 12% decline in exports of apparel, textiles, travel goods, and footwear in Jan and Feb. Export revenue for these products dropped from $246.65 million in the same period of 2023 to $215.86 million in the first two months of this year. As of Feb, trade agencies stated that the cost of detained goods currently approaches $5 million, but noted that some goods were released several weeks ago.