Taiwan Sees Drop in Furloughed Workers as Manufacturing and Service Sectors Rebound

Taiwan’s Furloughed Workers at Four-Month Low Amid Economic Rebound

Taiwan’s workforce is showing signs of recovery as the number of workers in formal furlough programs drops to its lowest level in four months. Both the manufacturing and service sectors have experienced a boost, with many companies returning their employees to work. According to the latest data from the Ministry of Labor (MOL), furloughed worker numbers as of December 15 fell to 4,474, marking a reduction of 822 workers from the previous month.

This decrease brings the furloughed worker count to its lowest level since August, when numbers stood at 4,459. The ministry’s report, released on Monday, also reveals that the number of employers implementing furlough programs has dropped to 257, a decrease of 41 compared to the end of November.

Factors Contributing to the Decline in Furloughed Workers

Several factors have contributed to the reduction in furloughed employees, especially in key industries such as manufacturing and services.

1. Manufacturing Sector Recovery
   In the manufacturing sector, companies are beginning to experience a resurgence in demand. For example, a major machine tool maker brought 120 employees back to full-time positions in early December due to an increase in orders. As of December 15, the number of furloughed workers in manufacturing stood at 3,596, a decrease from 4,091 on November 30.
2. Service Sector Improvement
   Similarly, the service sector is seeing a positive trend. A drug and cosmetics supplier ended its furlough program, bringing 50 employees back to work after a rise in business activity. This rebound is a significant factor in the overall decline in furloughed workers across the country.
3. Regional Impact: Hualien County
   In Hualien County, where a series of natural disasters—including a magnitude 7.2 earthquake and subsequent typhoons—severely impacted the tourism industry, furlough numbers are also on the decline. According to MOL data, 21 employers in the region ended their unpaid leave programs in December, reducing the furloughed workforce to 617 as of December 15, down from 814 earlier in the month.Experts suggest that the upcoming Lunar New Year holiday in late January could further stimulate the tourism sector, potentially providing a boost in demand for workers. However, it remains uncertain whether this will lead to a temporary increase or a more sustained recovery.

Current Furlough Programs in Taiwan

Here’s a snapshot of the current furlough situation in Taiwan, as per the Ministry of Labor’s most recent data:

A Glimpse into Taiwan’s Economic Future

The furlough data reveals a positive shift in Taiwan’s economic recovery. As companies across various sectors bring workers back to their jobs, the overall outlook for employment in Taiwan appears optimistic. However, experts warn that the full recovery will depend on continued growth in key sectors such as tourism, manufacturing, and services.

Frequently Asked Questions (FAQ)

1. What is the current furlough situation in Taiwan? As of December 15, 2024, there are 4,474 workers on furlough in Taiwan, the lowest number in four months.
2. Which sectors are seeing the most improvement? Both the manufacturing and service sectors are seeing a recovery, with several companies bringing their furloughed employees back to work.
3. How is the tourism industry in Hualien County affecting furlough numbers? After the region’s tourism industry was hit by natural disasters, furlough numbers in Hualien County are now decreasing, with 21 employers ending their furlough programs in December.
4. Will the Lunar New Year help improve the situation? Experts believe that the upcoming Lunar New Year could boost Taiwan’s tourism sector, potentially increasing the demand for workers in the region.
5. Are furloughs common in Taiwan? Furloughs in Taiwan are often temporary, with employees typically taking five to eight days of unpaid leave per month for less than three months.