Taiwan’s labour market shows signs of cooling

Taiwan’s labour market experienced a slight downturn in February as the unemployment rate edged up to 3.34%, marking a 0.04 percentage point increase, according to the Directorate-General of Budget, Accounting and Statistics (DGBAS). This rise breaks a five-month streak of declining joblessness and reflects seasonal shifts in employment patterns following the Lunar New Year.

Unemployed individuals grew by 6,000, reaching 402,000—a 1.39% monthly increase. Officials attributed the uptick primarily to the conclusion of temporary holiday positions and post-festive job transitions. Of the increase, 4,000 employees voluntarily left jobs due to dissatisfaction, while 2,000 were affected by the end of seasonal contracts.

Despite the monthly rise in unemployment, the overall employment landscape remains stable. February recorded 11.616 million employed individuals, a slight dip of 3,000 from January but an annual growth of 44,000 positions compared to February 2024.

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Youth unemployment continues to pose challenges, with jobless rates reaching 8.16% for those aged 15-19 and 11.33% for the 20-24 age group. However, employment stability improves significantly with age, as unemployment drops to 5.69% for individuals aged 25-29 and further declines to 3.4% for the 30-34 demographic.

In an effort to provide a more nuanced view of labour market conditions, the DGBAS introduced a new labour underutilisation indicator. This revealed that the four-week unemployment population increased by 9,000, reaching 408,000. At the same time, the number of underemployed employees—those seeking but unable to secure full-time roles—rose by 9,000 to 118,000, reported TVBS.