The number of workers placed on formal furlough due to tariff policies enacted by US President Donald Trump’s administration has risen sharply, approaching 1,200 as of Sunday, the Ministry of Labor (MOL) said yesterday.
Data compiled by the ministry showed that 1,189 workers — primarily from the export-oriented manufacturing sector — were on unpaid leave as of Sunday, up from 827 on May 31.
The number of manufacturers implementing furlough programs in response to the tariffs also increased, rising to 38 from 20 over the same period, the data showed.
Photo courtesy of the New Taipei City Government via CNA
Overall, the number of furloughed workers reached a total of 2,895 as of Sunday, an increase of 64 from two weeks earlier, while the number of employers running unpaid leave programs also grew slightly, from 155 to 160, the ministry said.
Labor Conditions and Equal Employment Division deputy head Wang Chin-jung (王金蓉) said the increase in furloughed workers over the past 15 days was concentrated in the manufacturing sector and directly tied to the effects of US tariff policies.
Trump first announced “reciprocal” tariffs on April 2, targeting countries with significant trade surpluses with the US.
The measures included a 32 percent import duty on goods from Taiwan. However, Trump later issued a 90-day pause to allow time for negotiations aimed at reducing the levy.
Over the 15-day period ending on Sunday, the number of furloughed workers in the manufacturing sector rose to 2,527, up from 2,430 as of May 31.
The sector accounted for more than 87 percent of the nation’s total furloughed workforce, Wang said.
The metal and electric equipment segment recorded the largest increase, with 269 additional workers placed on unpaid leave, he said.
Among them, a metal parts supplier furloughed more than 70 workers, while a machinery manufacturer placed about 60 workers on leave.
Both companies cited pressure stemming from the US tariff measures, she said.
However, not all developments were negative, Wang said, citing the example of a plastics company that brought 170 workers back to production lines after seeing a rebound in orders during the same period.
The ministry would continue to closely monitor the evolving impact of US tariffs on the manufacturing sector and has directed local governments to offer support to affected workers, she said.
Employment in the service sector remained stable, with the number of furloughed workers in the retail and wholesale industries falling to 272 as of Sunday, down from 305 on May 31, ministry data showed.
In addition, the number of furloughed workers in the lodging and food and beverage industry fell to 25 from 30 over the same period, the data showed.
The ministry updates its furlough data on the first and 16th of each month, tracking the number of employees placed on unpaid leave by companies registered with the ministry.
Most of the enterprises implementing such programs are small firms with fewer than 50 employees, the ministry said.
Unpaid leave programs typically last for less than three months, with employees taking five to eight days of unpaid leave per month, it said.
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