Number of furloughed workers up due to U.S. tariff impact

Taipei, June 16 (CNA) The number of workers in formal furlough programs in Taiwan due to the Trump administration's tariff policies grew and came closer to 1,200 as of June 15, the Ministry of Labor (MOL) said Monday.

Data compiled by the MOL showed the number of workers placed on unpaid leave programs around Taiwan due to the tariff impact rose to 1,189 as of June 15, up from 827 as of May 31, adding that they came from the export-oriented manufacturing sector.

The number of manufacturers that carried out their furlough programs in response to the tariff impacts also rose to 38 as of June 15, up from 20 as of May 31, the data indicated.

Overall, the number of furloughed workers in Taiwan rose 64 to 2,895 as of June 15 from 2,831 as of May 31, while the number of employers that put their unpaid leave plans in place rose to 160 from 155 in the 15 days, the MOL said.

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 around Taiwan largely came from the manufacturing sector in the past 15 days and the growth simply reflected the impact from the U.S. tariff policies.

U.S. President Donald Trump first announced reciprocal tariffs on April 2 on countries with high trade surpluses with the United States. These included a 32 percent import duty on goods from Taiwan, while Trump announced a 90-day pause a week later to allow negotiations for a lower levy.

In the 15 days, the number of furloughed workers in the manufacturing sector rose to 2,527 as of June 15 from 2,430 as of May 31. The sector accounted for over 87 percent of Taiwan's total.

Wang said the metal and electric equipment segment saw the largest increase of 269 in furloughed workers in the past 15 days, including a metal item supplier, which placed more than 70 workers on unpaid leave and a machinery maker put about 60 workers in furlough. She said the two companies said they felt the pinch resulting from the tariff issues.

However, Wang said, a plastics company put 170 workers back to production lines as the firm saw orders recover in the 15 days.

Wang said the MOL will continue to watch closely how the tariff impact will evolve in the manufacturing sector, adding that the ministry has instructed local governments to provide necessary assistance to affected workers.

In the service sector, employment remained stable, with the number of furloughed workers in the retail and wholesale industry falling to 272 as of June 15 from 305 as of May 31, the MOL's data showed.

In addition, the number of furloughed workers in the lodging and food/beverage industry fell to 25 from 30 during the same period, the data indicated.

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.