Taiwan’s job market showed resilience in February 2024, as the Directorate General of Budget, Accounting, and Statistics (DGBAS) announced the lowest February unemployment rate in 25 years. Additionally, labor force participation hit a 36-year high, signaling confidence in the economy.
According to DGBAS data, the unemployment rate stood at 3.34%, marking a 0.04 percentage point increase from January. However, after seasonal adjustments, the jobless rate dropped to 3.35%, a decrease of 0.02 percentage points, making it the lowest February unemployment rate since 2001.
At the same time, Taiwan’s labor force participation rate climbed to 59.33%, reflecting a 0.02 percentage point increase compared to January. This rise suggests that more people are optimistic about job opportunities and willing to enter the workforce.
Factors Behind the February Employment Trends
Tan Wen-ling (譚文玲), Deputy Director of the DGBAS Census Department, attributed the steady job market performance to multiple factors:
- Economic Recovery & Market Confidence: A strong labor force participation rate indicates that the general public sees better employment prospects.
- Post-Lunar New Year Employment Adjustments: February often experiences seasonal employment fluctuations due to the Lunar New Year holiday (Jan. 25 – Feb. 2). Many businesses temporarily reduce operations, and workers take time off before resuming work.
- Job Changes & Transitions: A total of 6,000 individuals became unemployed in February, with 4,000 leaving their jobs voluntarily for better opportunities, while 2,000 were seasonal workers whose contracts ended.
Tan emphasized that the March unemployment rate is expected to decline as many of these workers transition into new roles.
Underemployment and Working Hours Fluctuations
Alongside unemployment figures, the DGBAS released data on labor underutilization (LU), measured according to the International Labor Organization (ILO) standards.
- The “time-related underemployment” category, which tracks individuals working fewer hours than desired, saw an increase in February.
- A total of 118,000 individuals were underemployed, marking a rise of 9,000 people (7.58%) compared to January.
- Tan explained that working hours tend to increase before Lunar New Year due to higher consumer demand and then drop in February as businesses return to normal operations.
Long-Term Implications for Taiwan’s Job Market
The data suggests Taiwan’s labor market remains stable, but challenges persist. While unemployment remains low, fluctuations in underemployment and working hours indicate that some workers still face job insecurity.
Additionally, Taiwan’s economy is highly dependent on global trade and technology sectors. Any downturn in global demand could impact manufacturing, export industries, and employment rates in the coming months.
Despite these challenges, continued economic growth, government policies, and business expansions could help maintain positive job market trends.
FAQs
Why did Taiwan’s unemployment rate increase in February?
The slight increase in unemployment (by 0.04 percentage points) was mainly due to seasonal employment changes following the Lunar New Year holiday. Many workers either left their jobs for new opportunities or experienced temporary layoffs.
What does a labor force participation rate of 59.33% mean?
It means 59.33% of Taiwan’s working-age population (aged 15 and above) is either employed or actively seeking employment. This is the highest rate in 36 years, indicating strong workforce engagement.
What is time-related underemployment?
Time-related underemployment refers to workers who are employed but working fewer hours than they would like due to economic conditions or reduced business activity. In February, Taiwan saw 118,000 underemployed individuals, a rise from the previous month.
Will the unemployment rate decrease in March?
Yes, according to DGBAS officials, the unemployment rate is likely to decline in March as people who changed jobs in February begin their new roles.
How does Taiwan compare to other countries in terms of unemployment?
Taiwan’s 3.34% unemployment rate is considered low compared to many developed nations. For instance, in February 2024:
United States: 3.9%
Japan: 2.6%
South Korea: 3.6%
Eurozone Average: 6.4%
This suggests that Taiwan’s labor market remains strong and competitive.
What industries are hiring the most in Taiwan?
Currently, technology, manufacturing, finance, and healthcare sectors are driving employment growth in Taiwan. The government is also investing in green energy and semiconductor industries, which could create new job opportunities.
