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Taiwan to Encourage Hiring Seniors to Offset Post-2015 Declining Working Population

2014/12/04 | By Judy Li

 Due mainly to aging population and low birthrate, Taiwan's working population of 15-64 year-olds is expected to peak at 17.37 million persons by 2015 and then start to decline over the next decade (2016-2025), with annual average decrease of estimated 180,000 persons that will sap the average GDP by 0.85 of a percentage point, according to a report released by the National Development Council (NDC).

So the Cabinet is working out measures to encourage enterprises to hire middle-agers, seniors and women that intend to re-enter the job market, aiming to raise the labor participation rate to 60% by 2020 from 2013's 58%, which would raise the working population by 410,000 persons.

To reach this goal, the government plans to help employers create friendlier working environment and eliminate all kinds of discrimination against aging  workers, coupled with encouraging youths to start businesses with capable mid-agers and seniors, particularly indigenously distinct industries.

Last year Taiwan's labor participation rate of those aged 45-49 was 66.1%, lagging those of Japan, South Korea and Singapore, which stood at 75.7%, 67.7% and 73.4%, respectively; with Taiwan's being 52.9% for  those aged 50-54 versus Japan's  73.4%, South Korea's 62.5% and Singapore's 65.6%.

Another survey by the Directorate General of Budget, Accounting & Statistics (DGBAS) indicates that the number of Taiwan's employees with regular monthly salaries below NT$20,000 (US$666.67) dropped to 625,000 in 2014, yet that of non-permanent employees as part-time  and temporary helpers reached a record high of 766,000.

DGBAS says that non-permanent employees in 2008 totaled 650,000 persons to account for 6.24% of the total, and has grown to 766,000 persons by 2014 to make up 6.93%.

C. S. Huang, director of the DGBAS' Department of Census, indicates that most of Taiwan's non-permanent employees work in service industry such as F&B,  retailing, and tourism, also  emphasizing the ratio of non-permanent employees on the island being sub-7%, much lower than  20%-plus in neighboring Japan and South Korea.

Huang says the annual growth of average regular pay of Taiwan's employees posted at 1.69% in the first nine months, the second highest since 2001, with the number paid average monthly exceeding NT$50,000 (US$1,667) rising to 1.513 million, up from 1.291 million of five years ago. (JL)