Taipei: Growth in the number of workers on unpaid leave in Taiwan moderated significantly in the first half of October as several export-focused manufacturers witnessed a rebound in orders despite the impact of U.S. tariffs, the Ministry of Labor (MOL) reported on Thursday. Data from the MOL indicated a slight increase of 38 workers placed on formal furlough programs, bringing the total to 8,543 as of October 15. This compares to a more substantial rise of 1,171 workers during the latter half of September. Additionally, the number of employers with formal furlough programs increased to 432 from 398 in the same 15-day period.
According to Focus Taiwan, Huang Chi-ya, head of the MOL’s Department of Labor Standards and Equal Employment, noted that 53 manufacturing firms had terminated their unpaid leave programs after receiving more orders. Despite this, the manufacturing sector still reported 8,130 furloughed workers, representing 95.2 percent of the total furloughed workforce. Huang highlighted that while the job market is showing signs of stabilization, many employers have expressed the need for more time to assess the ongoing negotiations related to U.S. tariff policies.
Out of the 432 employers with unpaid leave programs, 354 were affected by U.S. tariffs, which imposed a 20 percent levy on Taiwanese exports, resulting in 7,923 workers being furloughed. The machinery industry reported the highest number of furloughed workers within the manufacturing sector, totaling 3,448. Huang mentioned that these affected workers are eligible to apply for government subsidies.
Current measures by the MOL aim to stabilize the job market in response to the U.S. tariffs. The ministry provides subsidies to furloughed workers in industries such as food, steel, textile, plastics, metal and electric machinery, and auto/auto parts. These subsidies cover 70 percent of the reduced wages due to furloughs, ensuring a worker’s monthly pay does not fall below the minimum wage of NT$28,590 (US$934). Huang stated that 7,156 affected workers are covered by these measures.
Furloughed workers outside the specified industries can participate in MOL-arranged training programs, receiving a subsidy of NT$190 per hour, with a monthly maximum of NT$17,210. These workers remain protected by the minimum wage requirement. The MOL updates its furloughed worker data bi-monthly, reporting the number of employees placed on unpaid leave by companies registered with the ministry.
Most enterprises implementing furlough programs are small firms with fewer than 50 employees. Typically, unpaid leave programs last less than three months, with employees taking five to eight days of unpaid leave per month, as noted by the MOL.
