The economic crisis and its impacts on workers

May 12, 2009

The global economic crisis now underway is having major impacts on North American and European workers and consumers, including massive job losses and reductions in spending power. It is having even more serious consequences for workers in the global South.

The economic crisis has reduced US and EU demand for at least some categories of imports from the South as economic uncertainty (about job security, income, and savings) leads Northern consumers to cut back on purchasing and brands and retailers to cut back on production in anticipation of shrinking consumer markets. Consumers will look for sharply-discounted apparel and other consumer products, which will favour some brands and retailers and not others, but in both cases prices paid to suppliers will be affected.

MSN is tracking the crisis as it unfolds, as well as the responses to the crisis from companies, governments, multi-lateral institutions, and most importantly from grassroots worker organizations and their allies. In this section we compile some relevant statistics, articles, proposals and examples to help understand the crisis and how labour rights advocates can best respond.

MSN Publications on the crisis:

How will the global financial crisis affect the garment industry and garment workers? (MSN, February 2009) (PDF)
Presentation: The apparel industry and the economic crisis: what is happening in the Americas? (prepared by MSN for the MFA Forum Americas Working Group session, April 24, 2009) (PDF, 287K)
The Crisis and Garment Production in Central America. March 2009.(PDF, 143k) A look at the industry, impacts on workers, and the Decent Work agenda in Central America, based on presentations at two events in Central America: After the Maquilas Are Gone, What Is Left? a public forum organized by the Independent Monitoring Group of El Salvador (GMIES) on March 3, 2009; and The Global Financial Crisis: Its Impact on the Garment Sector and Garment Workers, for the 11th annual colloquium of the Movement of Working and Unemployed Women, Maria Elena Cuadra, in Nicaragua on March 8, 2009.
The apparel industry and the economic crisis: How is the crisis affecting apparel production and garment workers?(MSN, June 2009: PDF, 348k) Using the latest statistics and case studies, MSN looks behind the headlines to examine the less obvious impacts of the economic crisis -- ones that may have an even more profound and long-term impact on workers in the apparel industry. This presentation was given at a public forum organized by the Fair Labor Association in Washington on June 24, 2009.
The Crisis and its effect on Mexico's textile and apparel industry (MSN, October 2009, PDF, 314k) A briefing note on the economic impacts of the crisis on Mexico's textile and apparel industry and the Federal Government's response.