Mon, Aug 23, 2010 page12

• Academic expects jobless rate to rise

  INCREMENTAL Hsin Ping-lung of NTU said that although the unemployment rate for last month would rise, the figure would be offset by an improving economy

  • STAFF WRITER, WITH CNA
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  Taiwan’s unemployment rate for last month was likely to show unemployment continuing to rise, with an improving economy offset by slowing demand from employers for new college graduates, an expert said yesterday.

  The nation’s unemployment rate edged up 0.02 percentage points to 5.16 percent in June from the previous month after fresh graduates entered the labor market and more people lost their temporary jobs, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said in a report released on July 22.

  On a seasonally adjusted basis, the jobless rate continued to fall to 5.2 percent in June from the previous month’s 5.22 percent. The DGBAS is scheduled to release the unemployment figure for last month today.

  Hsin Ping-lung (辛炳隆), an associate professor at National Taiwan University’s (NTU) Graduate Institute of National Development, said that although he expected the figures for last month to show unemployment continuing to rise, the increase would be very small, thanks to the improving economy.

  However, Hsin said the unemployment situation for new college graduates has deteriorated further.

  “That does not relate to the economy itself; it is more a structural problem related to excess supply,” Hsin said, pointing out that “there were just too many college graduates.”

  Under a trend of flat organizations, the demand for college graduates is less than it was before, while a lot of entry-level jobs have been superceded by computers, Hsin said.

  “College graduates face fewer job opportunities and supply exceeds demand,” he said.

  If Taiwan ignores the problem and continues to produce a large number of college graduates, even a booming economy will not slow the worsening of unemployment among new college graduates, Hsin said.

  He suggested that the government should concentrate more on higher technological and vocational education to repair the structural problem.

  The local industry structure still requires a lot of technical workers to fill low and medium-end jobs, he said.

  Taiwan’s high unemployment is a pressing issue for the ­government, with its unemployment rate in the second quarter of this year — 5.2 percent — the highest among the four “Asian Tigers.”

  Premier Wu Den-yih (吳敦義) has vowed to step down if his administration fails to bring the unemployment rate below 5 percent by the end of this year.

  AUO PROBE

  Meanwhile, Wu expressed concern yesterday over the fate of three ranking executives of LCD panel maker AU Optronics Corp (AUO, 友達光電) who have been barred by a US district court from leaving the US while an anti-trust probe continues.

  Wu pointed out that he is not in any position to try to intervene or interfere in a judicial procedure in the US, but said he has instructed Taiwanese officials posted in San Francisco to gain a better understanding of the situation and to render assistance if possible.

  The three executives — chief executive and president Chen Lai-juh (陳來助), vice chairman Chen Hsuan-bin (陳炫彬) and board member Hui Hsiung (熊暉) — have been ordered by the court to surrender their passports.

  They traveled to the US two or three weeks ago in a bid to explain themselves in court and clear AUO of price-fixing charges.

  US prosecutors said on Friday that the three executives were flight risks, given the lack of an extradition treaty between the US and Taiwan.
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