Taiwan Unemployment Rate Hits 7-Year Low

Taiwan's unemployment rate dropped to 3.96% throughout 2014, being sub-4% for the first time in seven years, according to the Directorate General of Budget, Accounting and Statistics (DGBAS).

Nevertheless such rate was higher than Hong Kong's 3.2%, Japan's 3.5%, South Korea's 3.4% and Singapore's 2%, all of whom being Taiwan's major trade competitors in Asia.

In December, the island's unemployment rate was 3.79%, the lowest for December in 14 years.

Assuming reports of economic recovery to be correct, DGBAS projects the island's jobless rate to continue dropping this year.

Although the 2014 result was the lowest since President Ma Ying-jeou took office in 2008, the rate remains above the 3% the president pledged to achieve.

Due to Economic Recovery

Lo Yi-ling, deputy director of the DGBAS Department of Census, ascribes the seven-year record rate mostly to the steady recovery of Taiwan's economy, saying the island's economy grew stronger and more stable than expected throughout last year, as shown by encouraging  industrial output and export orders.

Last year, the island had 457,000 unemployed people on average, down 0.22 of a percentage point from 2013, as well as 11.07 million employed, according to DGBAS.

Lo says both the International Monetary Fund (IMF) and World Bank forecast the global economy to improve this year from last year, to  further boost the island's employment rate.

Also she expects Taiwan's jobless rate to further fall in January due to typically more part-time and temporary jobs available in retail before the arrival of the Chinese New Year's eve to fall on February 18.

According to DGBAS statistics, Chiayi City saw the lowest jobless rate of 3.7% among the counties and cities in Taiwan due to its efforts in developing tourism, which created more jobs. Miaoli County and Tainan City reported the highest jobless rates of 4.1%.

Lo says the strengthening economic recovery led to the median 1.76% pay hike in the first 11 months island-wide, the highest in 14 years since Taiwan saw basic pay rise to NT$38,161 (US$1,231) monthly on average, which is up  3.89% to NT$47,377 (US$1,528) including bonus.

The financial industry saw the highest pay hike of all industries on the island in 2014, at 8.26%, followed by the real-estate industry's 6.28%.

Unfortunately such rates were outpaced by that of  consumer prices, to reduce average real wage to NT$45,550 (US$1,469) monthly, in contrast to NT$45,919 (US$1,481) of 15 years ago.

(KL)