Unemployment rate climbed last month to 5.17%

The unemployment rate rose to 5.17 percent last month from 5.03 percent in the previous month, reflecting a decline in temporary jobs and increased numbers of work seekers after the Lunar New Year holiday, official data showed yesterday.

Some 518,000 people were out of work last month, an increase of 14,000 from January and up 10,000 from a year earlier, the Directorate General of Budget, Accounting and Statistics (DGBAS) said.

The number is growing as electronics makers continued to shift production to factories in China.

"The government is in a race, trying to create jobs through public spending as private sectors are cutting back," said Vickie Hsieh, chief economist at President Securities Corp (統一投資).

Manufacturers such as Asus-tek Computer Inc (華碩電腦) and Compal Electronics Inc (仁寶電腦) have been firing workers as they transfer production to their factories in China.

Investment in China more than doubled from a year earlier in January to US$455 million, the government said last week.

Makro Taiwan Ltd (萬客隆), a cash-and-carry wholesale unit of Netherlands-based SHV Holdings NV, last month closed its stores and fired about 1,000 workers, saying sales fell short of its

expectations.

In December, it shut two stores and fired 300 workers in the south.

Allianz President Life Insurance Co, a venture between Allianz AG and Uni-President Enterprises Co (統一企業), said last month it fired some of its 600 workers.

The number of people who lost their jobs because of business closures and job cuts was 243,000 last month, down from 254,000 in January, the government said.

Without adjusting for seasonal changes, the jobless rate was 5.2 percent last month, compared with 5 percent in January.