Furloughed workers surpass 7,300 amid U.S. tariff impact

Taipei, Sept. 16 (CNA) The number of workers in formal furlough programs in Taiwan surpassed 7,300 as of Monday, with more than 6,000 placed on unpaid leave due to the impact of U.S. tariffs, the Ministry of Labor (MOL) said Tuesday.

MOL data showed 7,334 workers were on furlough, up 2,471 from 4,863 at the end of August. Of those, 6,246 came from industries hit by the 20 percent U.S. levy imposed on Taiwanese exports, an increase of 3,191 from two weeks earlier.

The number of employers implementing furlough programs also rose by 88 during the same period to 333, the ministry said.

● Nearly 1,000 more workers furloughed in late August amid tariff impact

Huang Chi-ya (黃琦雅), head of the MOL's Department of Labor Standards and Equal Employment, said the spike largely came from the export-oriented manufacturing sector, which has been under heavy pressure since the tariffs took effect on Aug. 7.

Manufacturers accounted for 6,870 furloughed workers, or more than 90 percent of the total, Huang said, with the machinery and equipment industry hit hardest, reporting 3,247 workers on furlough.

A total of 242 employers cited the U.S. tariffs as the reason for implementing furlough programs, Huang added.

By contrast, employment in the domestic demand-oriented services sector appeared relatively stable. The transportation and logistics industry reported no furloughed workers, while the number in the retail and wholesale sector rose slightly to 368 from 356, MOL figures showed.

To cushion the blow, the MOL launched "Subsidy Program 2.0" in August to provide financial aid to furloughed workers in designated industries. The program covers 70 percent of reduced wages. In the past 15 days, 5,940 workers became eligible to apply, Huang said.

The MOL updates furlough data on the 1st and 16th of each month, covering unpaid leave programs reported by registered employers. Most involve small firms with fewer than 50 employees, with programs typically lasting less than three months and requiring staff to take five to eight days of unpaid leave per month, according to the ministry.