Taiwan's unemployment rate for September was 3.1 percent -- the highest for that month in 15 years. Admittedly this is still low by Western standards and sounding an alarm now might seem like making much ado about nothing. But in Taiwan the figures don't tell the whole story. Many young people sitting jobless at home are not considered unemployed. Many unemployed people become roadside vendors or taxi drivers, or go back to their hometowns to work in the fields -- anything to avoid admitting that they are unemployed.
Such hidden unemployment is quite common, leading to the conclusion that the actual unemployment rate is even higher than the official figure. For Taiwan, an unemployment rate of 3.1 percent means 300,000 people are jobless. According to an estimate by Wei Duan
The current demand in the job market is mostly concentrated in the electronics and metal products sectors -- but most of the people who have lost their jobs are from the traditional industries. Among the unemployed in September, those aged between 45 and 64 totaled 44,000. And the numbers continue to rise. People in this age group often shoulder heavy family responsibilities, but they are also at the most difficult age at which to change careers, in light of their professional skills and competitiveness in the job market. This only deepens the impact of unemployment on society.
Sluggish economic prospects are the main reason behind rising unemployment. Taiwan is currently undergoing an industrial readjustment as traditional industries lose their competitiveness and fold. Workers released by factories closing up or moving offshore, combined with economic destitution in central Taiwan since the 921 earthquake, are the main causes of the recent rise in joblessness.
Resolving the unemployment issue, therefore, has to start from boosting the economy. Domestic investment is gradually shrinking amid the massive capital outflow to other countries, including China. This not only affects Taiwan's industrial competitiveness but also directly affects its employment rate. The government should formulate a set of overall industrial policies and help guide local industries as they seek to become more competitive. Industries that have no chance of survival here should be assisted in moving offshore -- though hopefully not toward China, given national security considerations. The government should also set up an accounting mechanism for these industries to keep their roots in Taiwan.
One of the government's new financial and economic measures is to improve the quality of local labor and provide an appropriate volume of foreign labor. Perhaps some will say the import of foreign labor is to blame for the high unemployment rate, but if the Council of Labor Affairs can handle such imports on a case-by-case basis and let the local and foreign labor forces complement instead of compete with each other, this may be a win-win strategy for both industry and labor. The CLA should also strengthen its professional training for both laborers and the unemployed, thus reducing obstacles to career changes.
Despite the serious unemployment, the official workweek is set to shrink further next year. Labor welfare should not be cut short because of unemployment, but the labor, management and the government should pay even more attention to ensuring a balance between working rights and working hours and holidays. Only then can we prevent labor problems from becoming social problems.
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