The activities of clothing and footwear factories suffered a sharp decline this year in all indicators, production, sales, and wages.

According to INSTAT data, in the third quarter of 2024, the employment index in the textile factory industry decreased by 20.8% compared to the same period a year ago, while the salary index in the same period decreased by 21%.

In shoe factories, the employment index decreased by 11.4%, while the wage index decreased by 10%. INSTAT has delayed the publication of employment indicators since the first quarter of 2024, but indirect indices show that employment in fashion factories has fallen by about 20% this year. This contraction was announced before by the associations and representatives of the sector, Monitor reported on Wednesday.

In the last two years, Albanian producers have gone through the most difficult period of the last decade, where the combination of many factors with a negative impact has made the perspective unclear.

The continuous decline of the euro, the increase in labor costs, and weak demand in foreign markets have put Albanian factories in all sectors in difficulty. Smaller ones are going bankrupt and many others have changed strategies to adapt to the new situation. Manufacturing for higher-value chains is being applied by many manufacturing units to keep revenues under control.

The data for the 11 months of 2024 show that the exports of clothing and shoes decreased by 16.5% in value. The decline of the fashion industry began in the second half of 2023 and continued throughout 2023 and 2024.

The exchange rate and the increase in the minimum wage made Albania uncompetitive. Many contracts were moved from Albania to cheaper destinations.