The aim of the study were to analyze the competitiveness of manufacturing industry sector, determine the impact of the manufacturing industry to the employment opportunities and to also design a strategy to develope the manufacturing industry at Tegal City. This study used secondary and primary data. Secondary data consist of Tegal City PDRB data year 2012-2016, and labor data . This research used Shift Share analysis tool, Klassen typology, multiplier effect, and SWOT. The results of the Shift Share analysis showed that in 2012-2016 the manufacturing industry sector experienced fluctuating growth with competitiveness which tended to decline but had positive values. Klassen Typology analysis results show the position of the manufacturing industry sector as a sector that is growing rapidly in 2012-2016. The results of the multiplier effect show that the manufacturing sector's labor did not bring an positive impact on employment opportunities in all sectors in Tegal City. Based on the SWOT Results, the industrial sector development policy strategies are: 1) Improving the quality of production with technology to be able to be competitive. 2) Improve quality and provide education on human resources to maximize the use of technology to boost production productivity. 3) Increase uses of modern technology to be ready to compete with domestic and international markets and finance support from the government and financial institutions. 4) Use of modern and environmentally friendly technology.