1st-time job seekers push unemployment rate up for 2nd straight month

Taipei, Aug. 22 (CNA) Taiwan's unemployment rate rose for the second consecutive month in July, driven by an increase in first-time job seekers entering the labor market during graduation season, the Directorate General of Budget, Accounting and Statistics (DGBAS) said Friday.

The unemployment rate edged up 0.04 percentage points from June to 3.40 percent in July, the highest level in nine months, according to DGBAS data.

After seasonal adjustments, however, the July jobless rate slipped 0.01 percentage points from the previous month to 3.33 percent, the agency said.

From January to July, Taiwan's average unemployment rate was 3.34 percent, down 0.03 percentage points from a year earlier.

Tan Wen-ling (譚文玲), deputy director of the agency's Census Department, said the increase was mainly due to more first-time job seekers entering the market.

In July, the number of unemployed rose by 5,000, or 1.39 percent, from a month earlier to 409,000. Of that total, first-time job seekers increased by 4,000.

Tan said the growth reflected the effects of new graduates entering the labor market, adding that the trend is likely to continue in August.

The number of employed reached 11.64 million in July, up 21,000, or 0.18 percent, from June. The labor participation rate rose 0.13 percentage points to 59.51 percent.

By education level, those with a university degree had the highest unemployment rate at 4.63 percent in July, the DGBAS said.

The jobless rate was 3.06 percent for those with a senior high school education and 2.16 percent for those with a junior high school education.

Unemployment among those aged 20-24 was 11.91 percent in July, reflecting the high concentration of first-time job seekers in that group, while the rate was 6.00 percent for the 25-29 age group.

Tan said the job market remained stable and the effect of U.S. tariffs was not yet apparent, as the 20 percent levy on Taiwanese goods only took effect on Aug. 7. The new tariff rate is higher than the 15 percent imposed on Japanese and South Korean products.

Citing Ministry of Labor data, Tan said the number of furloughed workers reached 3,441 at the end of July, up from 2,878 at the end of June.

According to the DGBAS, 117,000 people were in time-related underemployment in July, up 6,000 from a month earlier but down 2,000 from a year earlier.

The International Labor Organization defines time-related underemployment as workers whose hours are insufficient compared with a more desirable employment situation in which they are willing and available to work more.