An Overview of the Textile and Leather Industry of North Macedonia

The focus of this paper is to analyze the situation in the textile and leather industry in the last decade and their importance for the national economy of the Republic of North Macedonia. These industries have a significant impact on the total industrial production in the country, employment, participation in total exports, while their contribution to the formation of GDP is less significant. One of the reasons for this is the high share of lohn production, which accounts for about 93% of clothing and footwear production, while only 7% falls on own production. The analyses show that the textile, clothing and leather industries generally record a negative trend in industrial production and employment. These sectors are dominated by female labor, especially in the production of clothing and leather, which underlines their social as well as economic significance. Most workers in the manufacturing sector have secondary education qualifications, while only a small part have university degrees. While wage growth is a positive sign, it is not enough to compensate for the structural weaknesses of these sectors. The decline in the number of enterprises, together with fluctuations in production indices, confirms the general instability and challenges facing the textile and leather industry in North Macedonia.