Unemployment may have topped 5% as graduates seek jobs

Taiwan's rate may have reached a new high, topping 5.0 percent in August as more graduates enter the job market where opportunities have dwindled from a prolonged economic slowdown, officials suggested yesterday.

"Unemployment for August is expected to be higher than the previous month based on the past records," said Directorate General of Budget, Accounting and Statistics deputy director Chen Jin-cherng (陳金城).

His remark hinted at the possibility of a 5.0 percent or higher jobless rate for August after the island's unemployment hit a record high of 4.92 percent in July.

According to the Ministry of Economic Affairs, over 3,700 Taiwanese factories closed in the eight months to August -- up 31 percent from a year earlier.

Taiwan's had suffered its biggest quarterly fall in 26 years of 2.35 percent year-on-year in the three months to June.