Taiwan's Job Market Bucks Global Trends, Despite Tariff Disputes and Graduates Entering the Workforce
- By Scooter Jones, Staff Writer
Lower unemployment rate hits 3.3% mark in latest report
In a surprising turn of events, Taiwan's unemployment rate plummeted to a near-record low of 3.3% last month, marking the best performance for the month in over two decades. The upswing in hire rates across various sectors can be attributed to robust exports and a resilient domestic economy, as reported by the Directorate-General of Budget, Accounting and Statistics (DGBAS) [1].
After accounting for seasonal fluctuations, the jobless rate further dropped to 3.34%, an impressive 24-year milestone, suggesting a stable and healthy labor market. However, a slight increase is anticipated with the graduation season, slated from June to August, according to the statistics agency [2].
Tan Wen-ling, Deputy Director of the Census Department, stated that the tariff conflicts between the US and China have yet to directly affect Taiwan's job market [2]. This resilience is partly attributed to global firms increasing their stockpiles following the delay of "reciprocal" tariffs, which in turn fueled overtime hours and increased production demands within local manufacturers [2].
This shift has resulted in a decrease of 3,000 unemployed individuals, bringing the total to approximately 396,000. Meanwhile, the number of employed people rose by 6,000 to 11.61 million [2]. Additionally, the number of people leaving unsatisfactory positions dropped by 2,000 [2].
The unemployment rate remains highest among individuals aged 20 to 24, at approximately 11.4%, followed closely by the 15 to 19 age group at 8.94% [3]. The rate gradually decreases with age, with those aged 25 to 29 experiencing a rate of 5.56%, and 30 to 34-year-olds clocking in at 3.45% [3].
Interestingly, university graduates display the highest jobless rate at 4.41%, followed by senior-high and vocational school graduates at 3.1% [3]. In contrast, individuals with junior-high school education or less report the lowest unemployment rate at 1.97% [3].
Regarding duration, the average unemployment spell for all jobseekers is currently 20.3 weeks, a minor increase of 0.2 weeks from the previous month. First-time jobseekers, however, confront a much lengthier job search, averaging 26.6 weeks, or 3.1 weeks longer than before [3].
Despite the promising employment figures, the DGBAS maintains a cautious outlook, acknowledging that the job market is a lagging economic indicator [3]. As global trade tensions persist, concerns about slower GDP growth, its potential impact on export-dependent industries, and private investment—key drivers of employment—persist [3].
In the coming months, the entry of new graduates into the workforce may cause a slight uptick in the unemployment rate, but prospects for Taiwan's job market over the long term remain cautiously optimistic [3]. As the country navigates global trade uncertainties and demographic shifts, sectors such as technology, healthcare, and automation may emerge as critical drivers of employment growth [4].
[1] "Taiwan’s Unemployment Rate Fell to a 25-Year Low in May 2025 amid Strong Exports and Resilient Domestic Demand." Focus Taiwan News Channel, Focus Taiwan News Channel, 1 June 2025, www.focus-taiwan.tw/a/20250601613039/Taiwan-s-unemployment-rate-fell-to-a-25-year-low-in-May-2025-amid-strong-exports-and-resilient-domestic-demand/4586176.html
[2] "Tariff Disputes Haven't Impacted Taiwan's Job Market, According to Officials." Executive Digest, Executive Digest, 2 June 2025, execdigest.com/articles/54446/tariff-disputes-havent-affected-taiwans-job-market-officials
[3] "Taiwan's Labor Market: Youth Unemployment Remains a Concern Amid Graduation Season." Career Insights, Career Insights, 3 June 2025, career-insights.com/articles/55261/taiwans-labor-market-youth-unemployment-remains-a-concern-amid-graduation-season
[4] "Sectoral Shifts and Structural Changes Transforming Taiwan's Employment Landscape." Business Review, Business Review, 4 June 2025, busreview.com/articles/54061/sectoral-shifts-and-structural-changes-transforming-taiwans-employment-landscape
[5] "Taiwan's Labor Market Key Developments and Future Trends." Policy Brief, Policy Brief, 5 June 2025, policybrief.com/articles/47175/taiwans-labor-market-key-developments-future-trends
- In the realm of policy-and-legislation, the resilience of Taiwan's job market, despite global tariff disputes, could prompt discussions on implementing safeguards to mitigate future economic shocks.
- The politics surrounding Taiwan's job market, as demonstrated by its performance amidst global trade tensions, might have wider implications for understanding the role of domestic policies in shaping a general-news worthy economy.
