#LaborMarketTaiwan

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Taiwan's October Unemployment Rate Hits 24-Year Low at 3.4%

Introduction: Taiwan's Unemployment Rate Continues Downward Trend Taiwan's unemployment rate reached a 24-year low in October, registering at 3.4 percent. This marks the lowest unemployment rate for the month of October since 2000, signaling a positive shift in Taiwan's labor market. According to the Directorate-General of Budget, Accounting, and Statistics (DGBAS), the decrease in the unemployment rate was driven by a combination of new graduates entering the job market and seasonal factors. Key Labor Market Trends: Unemployment Continues to Decline In a report released on Friday, the DGBAS noted that the unemployment rate fell by 0.03 percentage points compared to September, continuing the downward trend that began earlier in the year. Typically, Taiwan sees a rise in unemployment during the graduation period from June to August, as students enter the job market. However, the seasonal increase is followed by a reduction in the following months, a pattern that has been observed for years. Tan Wen-ling, the deputy director of DGBAS' Census Department, explained that Taiwan’s labor market is showing positive signs, with expectations that the approaching year-end consumption peak will further help decrease the unemployment rate in November and December. Seasonal Adjustments: Comparing Taiwan’s Unemployment Rate Globally After adjusting for seasonal variations, Taiwan’s unemployment rate in October remained steady at 3.38 percent, unchanged from September. This figure is relatively low when compared to other major economies. For instance, the seasonally adjusted unemployment rates in October were 4.1 percent in the United States, 6.5 percent in Canada, and 2.7 percent in South Korea, showcasing Taiwan’s relatively strong job market. Unemployment by Age Group: A Closer Look at Youth Unemployment The report also broke down the unemployment rate by age group, highlighting the challenges faced by younger job seekers. The unemployment rate for individuals aged 15-19 was 9.12 percent, while for those aged 20-24, it stood at 11.84 percent. In contrast, the unemployment rate for those aged 25-29 was 6.07 percent, and for those aged 30-34, it dropped to 3.44 percent. The DGBAS explained that unemployment is typically higher among younger workers, especially those entering the job market for the first time. As these individuals gain work experience, their employment prospects generally improve, contributing to a gradual decrease in the unemployment rate for this demographic. Taiwan’s Labor Market Outlook: Positive Trends Expected to Continue Looking ahead, Taiwan’s labor market is expected to remain strong, with further improvements in the coming months. The DGBAS forecasts that the year-end shopping season will boost consumer demand, which in turn should create more job opportunities, particularly in the retail and service sectors. These factors are expected to continue supporting Taiwan's job market recovery as the economy stabilizes. Table: Unemployment Rate Breakdown by Age Group in Taiwan (October 2024) Age GroupUnemployment Rate15-199.12%20-2411.84%25-296.07%30-343.44%Overall3.4% Frequently Asked Questions (FAQ) 1. How much did Taiwan’s unemployment rate decrease in October? Taiwan's unemployment rate in October fell to 3.4%, a decrease of 0.03 percentage points from September. 2. How does Taiwan's unemployment rate compare to other countries? Taiwan's unemployment rate of 3.4% is relatively low compared to other major countries. For example, the unemployment rate in the United States is 4.1%, in Canada it is 6.5%, and in South Korea, it is 2.7%. 3. What is contributing to Taiwan's improving unemployment rate? The decrease in unemployment is largely due to new graduates entering the job market and the seasonal decline in unemployment after the summer months. Additionally, the upcoming year-end consumption peak is expected to create more job opportunities. 4. Why is unemployment higher among younger age groups? The unemployment rate is higher among younger people, particularly those aged 15-24, because they are entering the job market for the first time. As they gain more work experience, their job prospects typically improve. 5. What are the expectations for Taiwan's job market in the coming months? Taiwan's labor market is expected to remain strong, with the year-end shopping season expected to create more job opportunities, particularly in retail and services. Read the full article