A lack of talented workers has become a hot topic after government agencies recently issued warnings, but the real crisis for Taiwan is not the short-term talent outflows, as many of those who leave might return with a global perspective if there are good job prospects and as long as they have friends and family here, but rather the long-term outflow phenomenon amid the nation’s aging, declining population.
Last week, National Development Council Minister Chen Tain-jy (陳添枝) told a media gathering that Taiwan’s economy would show signs of a real recovery this quarter, propelled by a potential demand for new products and applications driven by the Internet of Things and artificial intelligence.
Chen added that he is expecting a general pay increase in the private sector this year if the economy continues to expand in what could be the longest period of expansion in a decade. However, blaming wage stagnation, Chen told reporters that the brain drain problem has increased in Taiwan.
Citing data collected by government agencies, Chen said about 760,000 of the nation’s university graduates worked or studied overseas between 2011 and 2015, accounting for 5 percent of the total 1.5 million graduates during the period — a ratio that meets the government’s definition of a brain drain.
The number of Taiwanese working abroad has increased significantly in the past few years because of fewer job opportunities in the nation.
According to a report by the Directorate-General of Budget, Accounting and Statistics (DGBAS) in April, the number of Taiwanese working overseas reached 724,000 in 2015, compared with 662,000 in 2009, with China being the primary destination, accounting for 58 percent of the total.
The DGBAS counts Taiwanese traveling to any foreign nation for a stay of more than 90 days as working overseas. However, by using different calculation methods, local media estimate that the total number of Taiwanese working overseas might have reached more than 1 million.
That there is an exodus of Taiwanese, regardless of how the numbers are calculated, is unquestionable. While it is normal to see a free flow of human capital on the international stage, Taiwan’s situation signals that salaries and work conditions in other nations have become more attractive to many Taiwanese than what is being offered here.
It also suggests a need for major infrastructure projects and ambitious industrial plans that could attract investments from enterprises — whether Taiwanese or multinational — that would like to hire a large number of employees here.
About 40 years ago, many Taiwanese graduates continued their education overseas, primarily in the US, and many of them found it rewarding to stay overseas after receiving their post-graduate degrees and setting out to become successful professionals and entrepreneurs. However, many of the brightest minds returned to Taiwan when the government initiated the 10 Major Infrastructure Projects in 1974 and launched the Hsinchu Science Park, which focused on developing integrated circuits, personal computers and other high-tech industries, during the 1980s.
They came back along with advanced knowledge and foreign work experience, and their contribution helped boost the nation’s economic growth at the time.
Compared with many other nations, Taiwan has public order, good medical services and a stable living environment. The local market does not suffer a lack of capital, but is in need of ambitious investment projects that can generate decent jobs and better wages.
President Tsai Ing-wen’s (蔡英文) administration is promoting a four-year Forward-looking Infrastructure Development Program and developing the so-called “five plus two” innovative industries to reboot the economy.
The question remains whether the government, enterprises and educational institutes are ready to work together to retain the nation’s talent in a more open-minded and effective way than before.
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