Taipei: Taiwan’s unemployment rate increased for the third consecutive month in August, driven by the influx of first-time jobseekers entering the labor market during the graduation season, the Directorate General of Budget, Accounting and Statistics (DGBAS) reported on Monday. Data from DGBAS indicated a rise in the August unemployment rate by 0.05 percentage points from the previous month, reaching 3.45 percent.
According to Focus Taiwan, after seasonal adjustments, the jobless rate saw an increase of 0.02 percentage points from July, marking 3.35 percent in August. Despite this rise, the average unemployment rate for the first eight months of the year stood at 3.35 percent, a slight decrease of 0.04 percentage points from the same period last year.
Tan Wen-ling, deputy director of the agency’s Census Department, stated that the jobless rate increased due to more first-time jobseekers entering the market, though it remains the lowest August rate in 25 years. Tan also noted that the effects of the graduation season are expected to diminish starting in September.
In August, the number of unemployed individuals rose by 6,000, or 1.52 percent, from the previous month, totaling 415,000. Meanwhile, employment figures increased by 3,000, or 0.03 percent, to 11.64 million, with the labor participation rate climbing 0.07 percentage points to 59.58 percent. The DGBAS highlighted a rise of 2,000 first-time jobseekers in August, along with an increase of 3,000 individuals who lost jobs due to business closures and downsizing.
The data also revealed that 2,000 more people left their jobs in search of better opportunities. By education level, those with a university degree faced the highest unemployment rate at 4.68 percent. For individuals with a senior high school education, the jobless rate was 3.03 percent, while those with a junior high school education experienced a rate of 2.35 percent.
Unemployment rates among younger demographics were particularly high, with those aged 20-24 facing a rate of 12.08 percent, reflecting the high number of first-time jobseekers in this group. The rate was 5.92 percent for the 25-29 age group and 8.71 percent for those aged 15-19.
Additionally, DGBAS data showed an increase in time-related underemployment, reaching 121,000 people in August, an uptick of 4,000 from the previous month. Tan attributed this rise to the impact of U.S. tariff policies, which have led some Taiwanese exporters to implement furlough programs for their workers. Tan warned that if the unemployment rate continues to climb in September, it may signal a more pronounced impact from these tariffs.
The International Labor Organization defines time-related underemployment as a scenario where workers have insufficient hours compared to their preferred employment situation, where they are willing and able to work more.