The geographical distribution of production in the textile, clothing and footwear (TCF) industries has changed dramatically in the past 25 years resulting in sizeable employment losses in Europe and North America and important gains in Asia and other parts of the developing world. This trend, has been accompanied by a parallel shift of production from the formal to the informal sector in many countries with generally negative consequences on wage levels and conditions of work. The available evidence, however, also suggests that globalization has led to a net gain in the level of worldwide employment and that the informal sector promotes a growing volume of employment in developing countries, especially in clothing and footwear. Employment in formal sector establishments has changed very little since 1980, while real earnings have in fact risen in several industrialized countries. Written by staff from the ILO Sectoral activities department, the report served as a basis for discussions by participants in a Tri