Taipei: Taiwan’s jobless rate moved lower for a second consecutive month in May as the number of those who left their original jobs and were still looking for work fell, according to the Directorate General of Budget, Accounting and Statistics (DGBAS). The local unemployment rate decreased by 0.02 percentage points from the previous month to reach 3.30 percent in May, marking the lowest level for the month in 25 years.
According to Focus Taiwan, seasonally adjusted data indicated that the jobless rate was 3.34 percent in May, also down by 0.02 percentage points from April, achieving the lowest level in 24 and a half years. Over the first five months of the year, the average local job rate was 3.32 percent, reflecting a decrease of 0.04 percentage points compared to the same period the previous year.
In May, the number of unemployed individuals decreased by 3,000 or 0.72 percent from the previous month to 396,000, while the number of employed individuals rose by 6,000 or 0.05 percent from April to 11.61 million. The labor participation rate increased by 0.03 percentage points to 59.30 percent, as reported by the DGBAS. A significant factor contributing to the reduction in unemployment was a decrease of 2,000 in the number of people quitting jobs due to dissatisfaction.
The DGBAS data revealed that by education level, the unemployment rate was highest among individuals with a university degree at 4.41 percent in May. Those with a senior high or junior high school education had unemployment rates of 3.10 percent and 1.97 percent, respectively.
Age-wise, the unemployment rate for those aged 20-24 stood at 11.14 percent in May, attributed mainly to the concentration of first-time jobseekers. In contrast, the rate was 5.56 percent for those aged 25-29. Tan Wen-ling, deputy director of the agency’s Census Department, highlighted that the stability of the local job market was evident from the declining number of unemployed and the rise in employment.
Tan noted that the number of individuals who lost jobs due to business closures or downsizing and remained unemployed dropped to about 96,000, the lowest level in over a year. The local job market also benefited from rising exports, spurred by the 90-day pause in U.S. President Donald Trump’s “reciprocal” tariffs announced on April 9, which prompted overseas buyers to place advance orders to avoid tariff burdens.
She cautioned that the U.S. tariff policies might affect the local job market in the third quarter once the 90-day pause ends. Under the initial reciprocal tariff regime, Taiwanese exports to the United States would face import duties of 32 percent. Tan also mentioned that the graduation season in Taiwan would likely increase the influx of first-time jobseekers, potentially raising the jobless rate from June to August amid the complex tariff situation.