The unemployment figure fell last month to 5.28 percent, the first decline in 13 months, the nation's statisticians said yesterday.
Although the figure inched down from October's 5.33 percent, the jobless rate still stood at a record level for November, up from 3.23 percent a year ago, according to the Directorate General of Budget, Accounting and Statistics (DGBAS).
"It's the first decline in 13 months, but still the second-highest on record since we began compiling unemployment figures in 1978," an official at the directorate said.
About 524,000 people were without work last month, a decrease of about 3,000 workers over October's figure.
Last month's figure reflected month-on-month decreases of 14,000 first-time job seekers who failed to find employment, but that was offset by increases of 8,000 people who lost their jobs from business closures or cutbacks, the directorate said.
The DGBAS' Bureau of Census deputy director, Chen Chin-cheng (
Joblessness eased slightly due to new department store openings, increases in catering and service jobs related to the Dec. 1 legislative elections and new infrastructure projects, he added.
"While the unemployment ratio looks likely to come down further in the run-up to the Lunar New Year, any decline is bound to remain limited. We don't think a decline to below 5 percent would be imminent."
Meanwhile, jobs are also dwindling as companies move production lines to China to cut costs, analysts said.
"The unemployment rate will continue to rise," said Franklin Poon, an economist at ABN Amro Asia Ltd. "Unemployment is a structural problem as more companies move production to China."
The relocations of Taiwan companies will accelerate after the country joins the WTO next week, easing restrictions on investment in the mainland.
Flagging domestic and overseas demand had already forced 14,500 Taiwanese factories to suspend operations by the end of last month while the number of newly registered plants in the 11-month period through November dropped 34.4 percent to 3,429 as investment was scaled down in the recession-hit economy, the Ministry of Economic Affairs reported.Also See Joblessness Inside
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