Growth in the number of workers on unpaid leave in Taiwan slowed significantly in the first half of this month, as some export-focused manufacturers' orders rebounded despite the effects of US tariffs, the Ministry of Labor said today.
Data compiled by the ministry showed the number of workers placed on formal furlough programs rose slightly by 38 from the end of last month to 8,543 as of yesterday, compared with an increase of 1,171 seen during the second half of last month.
The number of employers with formal furlough programs in place rose to 432 from 398 during the 15-day period.
Photo: CNA file photo
Huang Chi-ya (黃琦雅), head of the Department of Labor Standards and Equal Employment, told reporters that 53 firms in the manufacturing sector terminated their unpaid leave programs after receiving more orders.
Still, the manufacturing sector reported 8,130 furloughed workers, accounting for 95.2 percent of the total furloughed workers.
Huang said while the job market showed signs of stabilizing, many employers told the ministry that they needed more time to observe how the US tariff policies, which are still being negotiated, would develop.
Among the 432 employers with unpaid leave programs in place, 354 were affected by the US tariffs that placed a 20-percent levy on Taiwanese exports and put 7,923 workers on furlough.
In particular, the machinery industry reported the most furloughed workers at 3,448 in the manufacturing sector, Huang said, adding that these affected laborers were eligible to apply for subsidies from the government.
Under the current measures to stabilize the job market in reaction to the US tariffs, the ministry would provide subsidies to furloughed workers in the food, steel, textile, plastics, metal and electric machinery, and auto/auto parts industries, among others.
The subsidies total 70 percent of the reduced wages due to furlough, or enough to bring a workers' monthly pay above the minimum wage of NT$28,590.
According to Huang, 7,156 affected workers were covered by the measures.
Furloughed workers outside of these designated industries are eligible to participate in training programs arranged by the ministry to receive NT$190 in subsidy per hour and monthly maximum is NT$17,210.
These workers are also protected by the minimum wage requirement.
Currently, the ministry updates its furloughed worker data on the first and 16th of each month and reports the number of employees placed on unpaid leave by companies registered with the ministry.
Most enterprises implementing furlough programs are small firms that employ fewer than 50 people, 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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