The labor market is facing structural problems which will become more obvious when Taiwan is admitted into the WTO, according to a report prepared by the Institute of Labor Affairs at National Chengchi University.
The report indicates that manufacturing as well as the agriculture and service sectors will all feel the adverse effects of market liberalization, and a total of 138,000 jobs are likely to be affected between 2000 and 2005 if Taiwan joins the WTO at the end of this year or early next year as expected.
The institute was entrusted by the Council of Labor Affairs under the Executive Yuan to prepare the report, and all the report's estimates were based on a projected annual economic growth of 6.3 percent. As Taiwan's economic growth projection has been adjusted downwards, the labor market may find the prospects of WTO entry even gloomier.
The report points out that the agricultural sector will be the hardest hit, with an estimated 105,000 farmers expected to have to face the challenge of seeking new employment.
Currently, nearly 40 percent of Taiwan's farm population is aged over 55, and over 80 percent of the total has received nine years or less of formal education.
The Council of Agriculture foresees that at least 20,000 farmers will be looking for new jobs immediately following Taiwan's entry into the WTO. To deal with this, the council has organized a series of training programs for the farm population presently employed in growing rice, sugarcane, or tobacco, as these products are expected to be unable to compete with cheaper imports.
Three months after Taiwan is admitted into the WTO, the rice market will have to be opened.
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