Taipei: The number of workers in formal furlough programs in Taiwan increased by almost 500 in the first half of this month as the export-oriented manufacturing sector was hit by the Trump administration’s tariff policies, the Ministry of Labor (MOL) said.

According to Focus Taiwan, data compiled by the MOL showed the number of workers placed on unpaid leave nationwide rose to 3,934 as of Aug. 15, up 493 from 3,441 recorded on July 31. Specifically, the manufacturing sector saw an increase of 496 furloughed workers over the 15-day period, reaching a total of 3,590.

Among the 3,934 furloughed workers, 2,388, or about 60 percent, were affected by the U.S. tariff policies, as noted by the MOL. As of Aug. 15, the number of employers conducting furlough programs increased to 191 from 190 recorded on July 31, with the manufacturing sector seeing a rise from 142 to 146 employers implementing unpaid leave programs.

The report marks the first release of such data since U.S. tariffs, effective from Aug. 7, imposed a provisional 20 percent levy on Taiwan, in addition to existing most-favored-nation duties and industry-specific trade remedy tariffs.

In a statement, the MOL highlighted that the increase in furloughed workers was a result of the U.S. tariff impact, with the metal and electric machinery industry within the manufacturing sector experiencing significant effects. An auto lamp maker, heavily reliant on the U.S. market, placed over 400 workers on furlough in this period. Additionally, an LED auto lamp supplier reported 88 furloughed workers.

Meanwhile, the domestic demand-oriented service sector remained relatively stable, with the number of furloughed workers in the retail and wholesale business rising to 316 as of Aug. 15 from 277 as of July 31. Notably, the lodging and food/beverage industry reported no furloughed workers, a decrease from 10 previously recorded.

Despite the recent increase, the number of furloughed workers has decreased by 683 compared to the same period last year, when it stood at 4,617, according to the MOL.

The MOL updates its furloughed worker data bi-monthly and reports figures based on companies registered with the ministry. Most businesses implementing furlough programs are small firms with fewer than 50 employees. Typically, unpaid leave programs last for less than three months, with employees taking five to eight days of unpaid leave per month.