Jobless rate may go higher but government vows to rein it back
Updated: 2009-06-24 07:44
(HK Edition)
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TAIPEI: Taiwan's unemployment rate may reach as high as 6 percent between June and September but if that happens the government has pledged to rein it back to a more acceptable level.
"Premier" Liu Chao-shiuan made the promise at a meeting of the Taiwan-based Chinese National Association of Industry and Commerce yesterday.
The Directorate General of Budget, Accounting and Statistics released Taiwan's jobless rate for May on Monday. The rate had edged up 0.05 percent from April to 5.82 percent. It was the worst unemployment picture since the government began compiling jobless figures in 1978.
Liu pointed out the increase was caused by graduates fresh out of university hitting the job market. Bad as the news was, it was in line with earlier projections by the Council for Economic Planning and Development (CEPD).
The CEPD has also projected that the unemployment rate will hit 6 percent, he added.
Liu predicted unemployment will ease gradually as the government rolls out its job matching program bringing together recent university graduates and employers. The program is at the forefront of several job creation initiatives.
Meanwhile, with export orders picking up, the rate of decline in exports is expected to continue easing. As the picture improves, more companies will start hiring again, Liu said.
The government's major infrastructure initiative, bringing forward projects with a total value of NT$500 billion invested over four years, is moving forward. Projects are in the design stage or contracting stage. That initiative will add more jobs for the general labor pool, he said.
Attending a seminar of the Council for Industrial and Commercial Development, chief of economic affairs Yiin Chii-ming said that the jobless rate will drop late this year or early next year if the government measures to stimulate the economy are implemented within the year.
There are bright signs amid the general gloom in the job market. For example, the number of workers on unpaid leave in Taiwan's export zones is going down. The peak of 26,000 in February eased back to 20,000 in May, he said.
He also said export orders are returning to Taiwan. "It will take time for the world economy to recover. But Asia will recover sooner," Yiin said.
Heading to mainland
The recruitment company 104 Job Bank released a survey showing three in four job seekers are showing strong interest in working for a mainland-based company once Taiwan opens up to mainland investment.
104 Job Bank said it polled 6,998 job seekers aged over 30 between June 6 and 10. The survey focused on experienced workers.
Among those polled, 27.2 percent said they have worked on mainland.
The survey showed that 13.8 percent are looking for mainland-based jobs, while 38.6 percent said they have considered the idea but for various reasons have taken no action.
And 76.7 percent of respondents said they would explore job opportunities with mainland-invested companies once those companies are allowed into Taiwan. They cited reasons such as greater potential for career advancement (62.1 percent) and the necessity to preempt job competition (42.2 percent).
China Daily/CNA
(HK Edition 06/24/2009 page2)