Number of workers furloughed falls to 3-year low as manufacturing sector recovers

Taipei, July 16 (CNA) The number of workers on formal furlough programs in Taiwan fell to its lowest level in more than three years as the country’s export-oriented manufacturing sector recovers, the Ministry of Labor (MOL) said Tuesday.

Data collected by MOL showed that the number of workers on government-subsidised unpaid leave fell to 3,861 as of July 15, down 824 from 4,685 on June 30.

According to MOL, the latest figures are the lowest since 10 May 2021, when 3,782 employees were placed on unpaid leave.

In addition, the number of employers taking advantage of the government’s furlough scheme fell to 228 as of 15 July, down 44 from 272 on 30 June, according to MOL data.

Huang Wei-chen (黃維琛), director of MOL’s Labor Standards and Equal Employment Department, told CNA that “the decline in the number of workers furloughed largely reflects rising global demand fueling the local manufacturing sector.”

The number of workers furloughed in the manufacturing sector fell to 2,973 as of July 15, 913 fewer than the 3,886 on June 30, while 51 firms in the sector ended their furlough schemes during the same period.

Huang said two bicycle parts makers brought 240 and 170 workers back to production within 15 days, respectively, while two electronics component suppliers stopped paying unpaid leave to more than 100 workers each.

Huang added that several smaller companies in the chemical and light industry have also ended furlough programs.

“During the global economic recovery, the number of orders from foreign customers to these manufacturers has increased significantly,” he explained.

While the number of furloughed workers in the retail and wholesale sector fell to 273 as of July 15 from 370 at the end of June, the number in the hotel and catering industry rose to 351 from 258 in the same period, according to MOL data.

Huang said the increase was due to the 7.2-magnitude earthquake that struck Hualien in early April, which negatively impacted the county’s tourism industry, while employment in the service sector remained stable.

“In Hualien alone, the number of workers put on forced leave increased by 173 in the first half of this month, while the number of employers with unpaid leave programs increased by 19, including tour bus owners and hotel companies,” Huang said.

“The good news is that one hotel in Hualien has suspended its furlough program, bringing back more than 100 employees as its business has picked up thanks to the return of tourists during the summer holidays,” Huang added.

MOL started reporting the number of employees furloughed in April 2020 to show the impact of lower demand caused by the COVID-19 pandemic. The number of employees furloughed exceeded 58,000 in August 2021.

MOL currently updates data on furloughed workers on the 1st and 16th of every month, providing the number of companies and workers benefiting from publicly funded subsidies.

Most businesses implementing leave programs are small businesses employing fewer than 50 people.

According to MOL, unpaid leave programmes typically last less than three months, with employees enjoying five to eight days of unpaid leave per month.