Layoffs in Central Java Reach 6,604 by July 2026, Garment and Textile Sectors Hardest Hit

The Head of the Central Java Manpower and Transmigration Office (Disnakertrans), Ahmad Aziz, has revealed that the number of layoffs recorded in the province throughout 2026 has reached 6,600 people, with the majority occurring in the garment and textile industry. “The total number of layoffs up to the end of July 2026 is 6,604 people. The garment and textile industry accounted for 51.4 percent of layoffs, manufacturing and children’s toys 21.1 percent, the wood industry 12.5 percent, and the false eyelash industry 9.4 percent,” Aziz said in an interview on Tuesday (4/8). He added that the layoffs were caused by several factors. “The causes of the layoffs include company closures due to losses, declining orders, efficiency measures, bankruptcy, and force majeure such as fires,” he stated. In the garment sector specifically, two companies in Central Java recently went bankrupt after sustaining losses for several years. They are PT Victory Apparel in Semarang, which laid off 846 workers, and PT Samwon Busana Indonesia in Jepara, which laid off 684 workers. According to Aziz, the number of layoffs in the first half of this year is lower compared to the first half of 2025. “Last year there were more because of the PT Sritex factor,” he said. Aziz explained that the open unemployment rate in Central Java as of July 2026 stands at 4.24 percent, equivalent to 950,000 people. However, he noted that the labour absorption rate in the province during the first half of 2026 showed a fairly positive trend, reaching 213,000 people. The textile, garment, and footwear industries remain the largest absorbers of labour. “The top ten areas for labour absorption are Semarang City, Kendal, Jepara, Brebes, Klaten, Tegal Regency, Demak, Semarang Regency, Karanganyar, and Batang,” Aziz said. Based on Disnakertrans data, as of July 2026 there were 112,000 people seeking employment in the province, while the number of available job vacancies was 108,000.