Number of furloughed workers increase on U.S. tariff impact

Taipei, Aug. 18 (CNA) The number of workers in formal furlough programs in Taiwan increased by almost 500 in the first half of this month as the export-oriented manufacturing sector was hit by the Trump administration's tariff policies, the Ministry of Labor (MOL) said Monday.

Data compiled by the MOL showed the number of workers placed on unpaid leave nationwide rose to 3,934 as of Aug. 15, up 493 from 3,441 seen on July 31, while the number of furloughed workers in the manufacturing sector rose 496 in the 15 days to 3,590.

Among the 3,934 furloughed workers, 2,388 or about 60 percent were affected by the U.S. tariff policies, the MOL said.

As of Aug. 15, the number of employers that carried out furlough programs rose to 191 from 190 as of July 31, while the number of employers in the manufacturing sector implementing unpaid leave programs rose to 146 from 142.

The tally was released for the first time since the U.S. tariffs became effective on Aug. 7 with a provisional 20 percent levy faced by Taiwan. In addition to the 20 percent, the levy has been added to preexisting most-favored-nation duties and industry-specific trade remedy tariffs on Taiwan's goods.

● U.S. sets 20% tariff on Taiwan goods (update)

In a statement, the MOL said the increase in furloughed workers reflected the U.S. tariff impact, with the metal and electric machinery industry inside the manufacturing sector feeling the most apparent pinch.

An auto lamp maker placed more than 400 workers on furlough in the 15-day period as the U.S. served as the largest buyer of the company, according to the MOL. Another LED auto lamp supplier also reported 88 furloughed workers in the 15 days, the MOL said.

The domestic demand-oriented service sector stayed relatively stable, with the number of furloughed workers in the retail and wholesale business rising to 316 as of Aug. 15 from 277 as of July 31. In addition, the number of lodging and food/beverage industry reported no furloughed workers, down from 10.

Compared to the same period last year, however, the number of furloughed workers fell 683 from 4,617, according to the MOL.

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.