Matsu faces labor shortage amid ultra-low unemployment

Taipei, March 14 (CNA) Businesses across the Matsu islands, which have one of Taiwan's lowest unemployment rates, are struggling to recruit workers as a shrinking labor pool and aging workforce leave key industries short of staff.

The shortage has hit sectors ranging from hospitality and retail to construction and childcare, raising concerns that it could eventually affect residents' daily lives and the islands' tourism-driven economy.

According to a 2024 human resources survey by the Lienchiang County government, which administers Matsu, the unemployment rate stood at just 0.1 percent, much lower than the 3.38 percent rate for the entire country.

Meanwhile, 56.94 percent of Matsu's workforce is employed by government agencies, while only 22.09 percent work in the private sector, further limiting the labor pool available to businesses.

A guesthouse owner in Nangan Township, surnamed Chang (張), told CNA she has offered a starting monthly salary of NT$38,000 (US$1,180) for full-time staff but still cannot find suitable employees.

"People online often joke that if employers offer 'bananas,' they can only hire 'monkeys,'" she said. "But in Matsu, even when wages are 1.2 to 1.5 times higher than in Taiwan, it's still hard to find the right person."

Labor shortages have also slowed construction, according to a contractor overseeing public works projects in Chukuang Township.

The company offers wages starting at NT$3,000 per day, with meals and accommodation for workers relocating from Taiwan, but few applicants are interested due to the island's limited transportation and resources, he said.

Demographic trends have further tightened the labor supply. The report found workers aged 45-64 make up 51.43 percent of the workforce, while those aged 25-44 account for 37.19 percent.

Young workers are particularly scarce, with people aged 15-24 making up just 2.96 percent of the labor force.

Liu Yu-ting (劉羽庭), a director at a Matsu youth development association, said many young people from the islands move to the Taiwan proper for better opportunities.

Those who return often prefer starting their own business or entering public-sector jobs rather than frontline roles in retail or food service, she said.

Some employers have begun experimenting with new ways to recruit and retain workers.

Another guesthouse owner in Nangan, surnamed Chung (鍾), said she recruits short-term helpers through social media, offering accommodation and encouraging them to explore the islands during their stay.

She also shares meals with helpers and reduces working hours so they have time to experience life in Matsu, which she said improves job satisfaction and sometimes encourages them to stay longer.