Layoffs in Central Java Reach 6,604 by July 2026, Garment and Textile Sectors Hardest Hit
Head of the Central Java Provincial Manpower and Transmigration Office (Disnakertrans), Ahmad Aziz, revealed that recorded layoffs across Central Java throughout 2026 have surpassed 6,600 people, with the majority occurring in the garment and textile industries.
“The number of layoffs up to the end of July 2026 was 6,604 people. The garment and textile industry accounted for 51.4 per cent of layoffs, manufacturing and children’s toys 21.1 per cent, the wood industry 12.5 per cent, and the false eyelash industry 9.4 per cent,” Aziz said in an interview on Tuesday (4 August 2026).
He added that the layoffs were caused by several factors. “The causes of layoffs include company closures due to losses, declining orders, efficiency measures, bankruptcy, and force majeure events such as fires,” he said.
In the garment sector specifically, two companies in Central Java have recently gone bankrupt after suffering continuous losses over recent years: PT Victory Apparel Semarang and PT Samwon Busana Indonesia Jepara. PT Victory laid off 846 of its workers, while PT Samwon laid off 684 workers.
According to Aziz, compared with the first half of 2025, the number of layoffs in Central Java in the first half of this year is relatively lower. “Last year the figure was higher because of the PT Sritex factor,” he said.
Aziz explained that the open unemployment rate (TPT) in Central Java as of July 2026 stood at 4.24 per cent, equivalent to 950,000 people. Nevertheless, he noted that labour absorption in Central Java in the first half of 2026 showed a fairly positive trend, reaching 213,000 people, with the textile, garment, and footwear industries remaining the largest employers.
“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 data from Central Java’s Disnakertrans, as of July 2026 there were 112,000 people actively seeking employment in the province, while the number of available job vacancies stood at 108,000.