Taipei:A national association representing chain businesses has called for the further opening of Taiwan's service sector to foreign workers, highlighting a recent survey that reveals 98.8 percent of these businesses face manpower shortages.

According to Focus Taiwan, Jimmy Tsai, head of the Taiwan Chain Stores and Franchise Association (TCFA), urged the government at a forum to consider permitting foreign workers in more service industries to mitigate persistent labor shortages. He proposed initially capping foreign workers at 5 percent of each company's workforce to allow businesses time to adjust their training and management practices.

The TCFA held the forum to address recruitment challenges in the service sector, which have been exacerbated by Taiwan's low birthrate. A survey conducted by the TCFA in July and August among 160 chain and franchise businesses highlighted these difficulties.

TCFA Secretary-General Hung Ya-ling emphasized that the labor shortage threatens companies' expansion and growth. Since the beginning of the year, foreign workers have been permitted to work only in the hospitality and commercial port sectors, with the first group of 35 Indonesian workers arriving in Taiwan on September 14 to work at a hotel.

The survey revealed that 82.5 percent of chain outlets report moderate to severe labor shortages, with 57 percent experiencing shortages for over a year. Moreover, over 80 percent observed no improvement compared to the previous year.

The labor shortage has impacted sector operations, with 77.5 percent of companies reporting increased employee workloads, 60.5 percent struggling with staffing schedules, and 29.4 percent reducing business hours. Recruitment challenges were attributed to young people's low interest in service-sector jobs, long working hours, heavy workloads, and work-related stress.

Tsai also appealed for the government to relax work-hour restrictions on foreign students, extend the post-graduation job-seeking period, and create a one-stop service window to retain international students after graduation. Currently, foreign graduates with an associate degree or higher can work in Taiwan for two years post-graduation without a work permit or industry restrictions, after which they are limited to specialized or technical jobs, excluding entry-level positions like food-service jobs.