Furloughed Workers in Taiwan Decrease Despite Tariff Uncertainties

Taipei: The number of workers in Taiwan placed on furlough or unpaid leave programs fell more than 300 in the past 15 days, indicating that uncertainties on global trade resulting from the Trump administration tariff actions have not affected the local job market, the Ministry of Labor (MOL) said Wednesday.

According to Focus Taiwan, data compiled by the MOL showed the number of furloughed workers in Taiwan decreased by 307 from the end of March to 1,682 as of April 15. Additionally, the number of employers who implemented unpaid leave programs dropped by 13 to 110 in the first half of the month.

Speaking with CNA, Wang Chin-jung, deputy head of the MOL's Labor Conditions and Equal Employment Division, noted that Taiwan's export-oriented manufacturing sector experienced the largest decline in furloughed workers. The number fell by 171 from the end of March to 1,361 as of April 15. In this sector, two machinery suppliers reinstated more than 200 workers to production lines due to an increase in orders. However, another machinery maker placed about 100 employees on its unpaid leave program during the same period.

In the electronics sector, an electronics maker suspended its furlough program by putting more than 100 employees back to work and entered discussions with its employees about the future of the program. Meanwhile, a plastics supplier placed more than 100 employees on furlough.

Wang stated that the United States' tariff policies have so far had little adverse impact on local employment, though the situation has created significant uncertainties. In response, the MOL has reached out to some exporters for updated information about their conditions.

Outside the manufacturing sector, the lodging and food/beverage industry also reported a reduction of 86 furloughed workers in the 15 days leading up to April 15. This followed a hotel operator in Hualien County ending its furlough program after experiencing the effects of a 7.2 magnitude earthquake on April 3, 2024. However, Wang mentioned it remains uncertain whether the hotel will resume the furlough program, as the local tourism market is still underperforming.

The MOL updates its furloughed worker data on the 1st and 16th of each month and reports the number of employees placed on unpaid leave by companies registered with the ministry. Most enterprises implementing furlough programs are small firms employing fewer than 50 people. Unpaid leave programs typically last for less than three months, with employees taking five to eight days of unpaid leave per month.