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Unemployment rate drops for fourth consecutive month

Taiwan's jobless rate continued to drop for the fourth consecutive month in December to 5.04 percent from 5.22 percent the previous month, the Directorate General of Budget, Accounting and Statistics (DGBAS) said yesterday.

A total of 505,000 people were out of work in December compared to 522,000 in November.

That number fell because new graduates found jobs, the government said.

"With the number of first-time job seekers, as well as resignations declining, the jobless rate continued to fall," said Chen Jin-cherng (陳金城), a deputy director of the DGBAS.

He added that with temporary positions opening up prior to the Lunar New Year, January's unemployment is expected to drop below 5 percent.

Overall, the nation's unemployment rate hit a historical high last year of 5.17 percent, up from 4.57 percent in 2001.

With an increasing number of companies shifting manufacturing to China last year, many employees were forced out of work because of factory closures.

The jobless rate soared to its highest level in August at 5.35 after summer graduates entered the market, the government said.

Meanwhile, one market watcher said the outlook for this year is positive.

"We estimate the annual jobless rate in 2003 will very likely fall below 5 percent to somewhere between 4.5 to 5 percent," said Hsu Hung-chang (徐宏彰), an executive at 1111 Job Bank (1111人力銀行).

According to a Job Bank survey, more than 80 percent of companies have plans to recruit this year, Hsu said.

A total of 300,000 jobs opportunities may open up within the next 11 months, up nearly 50 percent from 200,000 last year, he added.

"Since many employers believe the economy will gradually rebound, they expect to increase hiring," Hsu said.

The phone poll of human resource officials from 2,232 companies was conducted between Jan. 2 and Jan. 16.

Financial holding companies, high-tech firms as well service companies are expected to lead the hiring push, the report said.

While many of the openings will fill vacancies, some 47 percent of companies said they plan to offer new jobs to complete their expansion plans.

More than 50 percent of companies plan to recruit new staff between January and March -- or after the Lunar New Year -- as well as in the June to August period.

According to Hsu, this year's unemployment rate may fall to its lowest point in March or April, and is set to rise in May when college graduates start to look for work after graduation.

Meanwhile, Hsu said in addition to recruitment plans in the private sector, the government's job-creation plan is expected to help ease unemployment.

Last week the government approved a job-creation project which aims to reduce the nation's unemployment rate from the current 5.04 percent to 4.5 percent by creating 115,000 part-time jobs in public construction and the government's service sector.
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