Taipei: Taiwan's jobless rate rose for the second consecutive month in July, driven by an influx of new graduates into the local job market, according to the Directorate-General of Budget, Accounting and Statistics (DGBAS).
According to Focus Taiwan, data from the DGBAS indicated that the country's unemployment rate increased by 0.05 percentage points from June, reaching 3.39 percent-the highest level since August 2025 when the rate was 3.45 percent. However, this figure represented a decrease of 0.01 percentage points compared to the same period last year, marking the lowest July unemployment rate in 26 years.
Despite the rise, Taiwan's seasonally adjusted unemployment rate remained stable at 3.33 percent. In the first seven months of the year, the average unemployment rate was 3.32 percent, a slight decrease of 0.02 percentage points from the previous year.
The number of unemployed individuals rose by 7,000, or 1.65 percent, from the previous month to reach 409,000 in July. Simultaneously, the number of employed individuals increased by 14,000, or 0.13 percent, totaling 11.65 million. The labor force participation rate also climbed 0.10 percentage points from June, reaching 59.66 percent, the highest July level in 35 years, as reported by the DGBAS.
DGBAS noted that the number of first-time jobseekers increased by 4,000 in July, while those losing jobs due to the termination of seasonal and temporary contracts rose by 3,000. Tan Wen-ling, deputy director of the agency's Census Department, attributed the higher July jobless rate to the graduation season but emphasized that employment remained stable after seasonal adjustments.
Tan highlighted the increased willingness among jobseekers to enter the market, as evidenced by the higher labor force participation rate, which she described as a positive sign for the local job market. She also pointed out that government policies encouraging women's participation in the workforce contributed to this increase.
By education level, those with university degrees experienced the highest unemployment rate at 4.54 percent in July. The jobless rate was 3.11 percent for individuals with a senior high school education and 1.98 percent for those with a junior high school education. The unemployment rate among the 15-24 age group stood at 11.71 percent in July, reflecting the large number of first-time jobseekers. For the 25-29 age group, the rate was 5.82 percent, and for the 30-34 age group, it was 3.29 percent.
DGBAS data also revealed that 122,000 people were classified as time-related underemployed workers in July, an increase of 1,000, or 0.87 percent, from the previous month. This figure increased by 5,000, or 3.89 percent, from the same period last year. The International Labour Organization defines time-related underemployment as a situation where workers have insufficient hours compared to a more desirable employment situation.