Layoffs In Honduras'S Textile Industry

Fakurai, President of the Honduras Textile Industry Association, said recently that the textile industry in Honduras had already seen a "layoff tide" due to the shrinking demand for textile market in the US.

According to the data provided by the Hong Kong Textile Industry Association, textile exports account for 50% of Honduras's total exports, while the United States is the most important export destination for Honduras textiles.

Affected by the global financial crisis, the demand for textiles in the United States has shrunk since the second half of 2008, which has severely damaged the development of Honduras's textile industry.

According to preliminary estimates, between August and October this year, several textile factories in the country went bankrupt, resulting in 9100 workers losing their jobs.

It is expected that the total number of layoffs in the textile industry will reach 15 thousand by the end of this year.

Honduras textile industry benefits from the free trade agreement between Central America and the United States. Export textiles can enjoy tariff relief when entering the US market.

Nevertheless, Faku is worried about the prospects of Honduras's textile industry.

He said that in order to reduce operating costs, the "layoff tide" caused by the shrinking demand market will intensify in 2009.

As a major textile exporter in Central America, Honduras textile industry created 132 thousand jobs in early 2008.

The textile industry is the most important industry to ensure the employment rate of the country.