Forecasting of Global Labor Cost Trends in Apparel Manufacturing

In this paper a comparison of labor cost is carried out for apparel manufacturing in different countries. The factors that may have impact on labor cost are analyzed using data spanning from 2001 through 2025. Out of the multiple options for the location of apparel manufacturing and decisions regarding apparel sourcing, lower cost options are generally preferred. However, the landscape has shifted significantly due to rising wages in traditionally low-cost countries, the impact of the COVID-19 pandemic, trade tariff disruptions (particularly US-China trade tensions and 2025 reciprocal tariffs), automation pressures, and sustainability compliance requirements. Analysis is made to estimate the rate of labor cost increase in low wage and high wage countries using updated linear regression models. The global apparel market, valued at approximately $1.77 trillion in 2024, continues to be shaped by these evolving cost dynamics. This revised edition incorporates data through 2025 from the ILO Global Wage Report 2024–25, Werner International, the US Bureau of Labor Statistics, and multiple industry sources.