Furloughed workers dip to 3-year low as manufacturing sector recovers

Taipei, July 16 (CNA) The number of workers in formal furlough programs in Taiwan has fallen to its lowest level in more than three years on the back of a recovery of the export-oriented manufacturing sector, the Ministry of Labor (MOL) said on Tuesday.

Data compiled by the MOL showed the number of workers placed on the government-subsidized unpaid leave programs fell to 3,861 as of July 15, down 824 from 4,685 recorded on June 30.

The latest figure represents the lowest level since early May 10, 2021, when 3,782 workers were placed on unpaid leave programs, according to the MOL.

In addition, the number of employers using the government's furlough programs also fell to 228 as of July 15, down 44 from 272 recorded on June 30, the MOL's data indicated.

Huang Wei-chen (黃維琛), director of the MOL's Department of Labor Standards and Equal Employment, told CNA that "the fall in the number of furloughed workers largely reflects growing global demand driving the local manufacturing sector."

The number of furloughed workers in the manufacturing sector fell to 2,973 as of July 15, down 913 from 3,886 on June 30, while 51 companies in the sector ended their furlough programs during the same period.

Huang said two bicycle part makers respectively put about 240 and 170 workers back on production lines in the 15-day period, while two electronics component suppliers stopped their unpaid plans for more than 100 workers each.

In addition, several smaller firms in the chemical and light manufacturing industries also ended their furlough programs, Huang said.

"These manufacturers largely saw orders from their foreign clients growing at a time of a global economic recovery," he explained.

Although the number of furloughed workers in the retail and wholesale sectors fell to 273 as of July 15 from 370 at the end of June, the numbers for the hotel and food/beverage industry actually rose to 351 from 258 during the same period, according to the MOL's figures.

Huang said this increase is related to the 7.2 magnitude earthquake that hit Hualien in early April, negatively impacting the county's tourism industry, while employment in the service sector stayed stable.

"In Hualien alone, the number of furloughed workers rose 173 in the first half of this month with the number of employers with unpaid leave programs in place up 19, including tour bus owners and hospitality firms," Huang said.

"The good news is that one hotel in Hualien stopped its furlough program by putting more than 100 employees back to work, as its business was boosted by a return of tourists during the summer vacation period," Huang added.

The MOL started reporting the number of furloughed workers in April 2020 to show the impact resulting form lower demand caused by the COVID-19 pandemic. The number of furloughed workers reached more than 58,000 in August 2021.

The MOL currently updates its furloughed worker data on the 1st and 16th of every month, reporting on the number of companies and employees taking advantage of the publicly-funded subsidies.

Most enterprises implementing furlough programs are small companies that employ fewer than 50 people.

Unpaid leave programs typically last for less than three months, with employees taking five to eight days of unpaid leave per month, according to the MOL.