Taipei: The number of workers in formal furlough programs in Taiwan due to the Trump administration's tariff policies has risen significantly, nearing 1,200 as of June 15, according to data from the Ministry of Labor (MOL) released on Monday. The increase highlights the impact on the export-oriented manufacturing sector, which has been affected by the tariffs.
According to Focus Taiwan, the number of workers placed on unpaid leave programs around Taiwan due to the tariff impact rose to 1,189 as of June 15, up from 827 as of May 31. The data also showed that the number of manufacturers implementing furlough programs in response to the tariffs increased to 38 from 20 during the same period.
Overall, the number of furloughed workers in Taiwan rose to 2,895 as of June 15 from 2,831 as of May 31, with the number of employers enacting unpaid leave plans rising to 160 from 155. Wang Chin-jung, deputy head of the MOL's Labor Conditions and Equal Employment Division, noted that the increase in furloughed workers largely came from the manufacturing sector in the past 15 days, reflecting the tariff policy impacts.
U.S. President Donald Trump announced reciprocal tariffs on April 2 on countries with high trade surpluses with the United States, imposing a 32 percent import duty on goods from Taiwan. Despite a 90-day pause announced a week later to allow negotiations for a lower levy, the tariffs have continued to affect the manufacturing sector.
In the 15 days leading to June 15, the number of furloughed workers in the manufacturing sector rose to 2,527 from 2,430. This sector accounted for over 87 percent of Taiwan's total furloughed workforce. The metal and electric equipment segment experienced the largest increase, with a rise of 269 furloughed workers, including significant impacts on a metal item supplier and a machinery maker.
However, some sectors showed signs of recovery. A plastics company returned 170 workers to production lines as it saw orders recover. The MOL is monitoring the situation closely and has instructed local governments to assist affected workers.
In contrast, the service sector remained stable, with furloughed workers in the retail and wholesale industry decreasing to 272 from 305, and those in the lodging and food/beverage industry falling to 25 from 30.
The MOL updates its furloughed worker data bi-monthly, reporting on employees placed on unpaid leave by registered companies. Most enterprises implementing furlough programs are small firms with fewer than 50 employees. The unpaid leave programs typically last less than three months, with affected employees taking five to eight days of unpaid leave per month.