Taiwan sees rise in furloughed workers as firms suffer from reduced orders

Taipei, Aug. 17 (CNA) The number of workers in Taiwan placed on furlough or unpaid leave programs increased slightly in the first half of August as a couple of employers in the old economy sector reported a fall in export orders, according to the Ministry of Labor (MOL).

Data compiled by the MOL showed on Friday that the number of furloughed workers in Taiwan rose to 4,617 as of Aug. 15, up 180 from the 4,437 at the end of July, while the number of employers who implemented unpaid leave programs also rose by 20 to 268 in the first half of the month.

Speaking with CNA, Wang Chin-jung (王金蓉), deputy head of the MOL's Labor Conditions and Equal Employment Division, said the increase in furloughed workers largely came after two employers in the metal and electric machinery industry put more employees on unpaid leave.

Wang said each of the two companies -- one machine tool supplier and one bicycle parts maker -- placed about 100 people on furlough in the 15-day period, due to a drop in export orders.

She said it was not the first time that the two employers reported their furlough programs to the MOL.

As of Aug. 15, the number of furloughed workers in the export-oriented manufacturing sector rose to 3,678, from 3,573 at the end of July, according to the MOL.

The Directorate General of Budget, Accounting and Statistics (DGBAS) on Friday lowered its forecast of Taiwan's gross domestic product (GDP) growth for this year slightly to 3.90 percent, from 3.94 percent, citing an uneven rebound in global demand.

The DGBAS said that in terms of a recovery, old economy industries have lagged behind their tech counterparts, which have gotten a significant boost from emerging technologies such as artificial intelligence applications and high-performance computing devices.

A massive earthquake that struck Hualien in eastern Taiwan in early April also continued to send ripples through the tourism industry there, pushing up furloughed workers in the 15-day period, the MOL said.

The 7.2 earthquake jolted off Hualien on April 3, the strongest temblor recorded in Taiwan in 25 years. It dealt a big blow to the county's tourism industry.

The MOL said the number of furloughed workers in the county rose by 61 to 560 as of Aug. 15, with the number of employers having unpaid leave programs in place up by 12, reaching 56.

Wang said the employers in Hualien carrying out furlough plans were largely smaller sized businesses, including tour bus rental companies, travel agencies, as well as lodging and food/beverage suppliers which she suspected were affected by the earthquake.

As of Aug. 15, furloughed workers in the local support service industry, which is comprised of travel agencies, rose to 59 from 45 at the end of July, while the figure in the lodging and food/beverage industry also rose to 371 from 341, the MOL's data showed.

Currently, the MOL updates its furloughed worker data on the 1st 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, according to the MOL.

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