The National Development Council in August released its latest biennial projection on Taiwan’s demographic trends. Recent projections have shown a significant decline in the working-age population, with labor shortages predicted to reach 400,000.
The government is promoting new population and immigration policies that focus on recruiting foreign professionals, attracting students from abroad and retaining foreign skilled workers.
Taiwan’s labor policy has been xenophobic, with many restrictions on hiring foreign workers. There was a limit on the number of migrant workers and foreign domestic helpers — who are seen by some as an underclass in Taiwan. Even overseas Taiwanese students who returned after graduating need to overcome many obstacles to getting a job, even if they have technical training.
This is frustrating for business owners and those who want to live in Taiwan. Now that the government wants Taiwan to become more open, Taiwanese should support and encourage the changes.
A tight labor market has worsened, and the “one fixed day off and one flexible rest day” policy has exacerbated the labor shortage.
Although there is no lack of labor in the hospitality industry, which was hit hard during the COVID-19 pandemic, the construction industry has faced a severe labor shortage. Major infrastructure projects have been delayed and costs have risen sharply. With soaring construction costs, housing prices are likely to rise.
The manufacturing and electronics industries have also long had a shortage of talent.
The US saw a “great resignation” during the pandemic; Canada has more than 1 million unfilled jobs; and Australia faces a shortage of civil engineers, cooks and childcare workers for the next five years.
Many countries are making immigration easier. New Zealand has temporarily loosened its immigration rules, aiming to attract 12,000 workers over the next year to fill labor gaps; Australia has raised its permanent migration cap to 195,000; and Japan has sought to reform its residency policy to attract more foreign talent.
Many Taiwanese have the impression that Malaysian Chinese desperately seek to work in Taiwan, but nowadays, Malaysia itself is also facing a severe shortage of workers, prompting the country to rely on Indonesian labor.
There is still a significant shortage. Malaysia negotiated with Bangladesh to initiate intergovernmental cooperation to recruit hundreds of thousands of Bangladeshi workers, breaking with the practice of recruiting through private agencies.
Thailand is also extremely short of labor, as is Vietnam.
Migrant workers and foreign domestic helpers have been considered the bane of Taiwanese because people believe they steal jobs.
However, this idea runs counter to economic common sense, because importing labor creates more job opportunities.
The same logic applies when large numbers of people from central and southern Taiwan seek employment in Taipei. The capital’s economy enjoys a strong labor market, allowing enterprises to recruit talent more easily and become more willing to be based in Taipei.
To further explore the workforce solutions in Taiwan, the Formosa Republican Association is scheduled to hold its Workforce Forum on Oct. 22.
However, a single forum is not enough to resolve such a crucial issue. Public attention and government support are required.
Tommy Lin is president of the Formosa Republican Association, vice president of the Taiwan United Nations Alliance and a medical doctor.
Translated by Sylvia Hsu
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