Job losses in Bangladesh’s ready-made garment industry signal export pressures despite a fiscal year increase in shipments.
Bangladesh’s ready-made garment sector laid off 20,000 workers in the first half of 2026, reflecting factory closures and financial strain. Manufacturers cited falling export orders and limited bank financing as key drivers, while labor unions disputed the scale of the decline and linked dismissals to unionization efforts.
Garment exports reached $39.35bn in fiscal 2024–25, an 8.84% annual rise, but the first 11 months saw a 3.41% drop to $35.31bn. Industrial Police data showed 7,784 layoffs across 79 factories in the first five months of 2026, with losses concentrated in major industrial zones.
The sector, a cornerstone of Bangladesh’s export economy, faces growing uncertainty as manufacturers and labor groups offer conflicting explanations for the downturn.