Taiwan furlough surge intensified last month as the number of workers on unpaid leave rose from 8,456 to 9,153. The Ministry of Labor reported that 369 out of 456 employers directly blamed US tariffs for the new furloughs.
Between November 17 and the end of the month, three major companies in machinery, metal products, and consumer goods drove 697 of the new furloughs. In total, 21 employers launched furlough programs to cope with weaker demand and trade disruptions.
Most companies implementing furloughs are small, with 417 of 456 employing fewer than 50 workers. Huang Chi-ya, head of the Ministry of Labor’s Department of Labor Standards and Equal Employment, said manufacturing dominates the programs. She added that 376 companies in the sector affected 8,619 workers.
The metal and machinery industries accounted for the largest share, with 300 firms and 6,404 employees impacted. The situation highlights how trade policies can quickly influence domestic labor markets.
Authorities noted that 328 of the affected firms qualify for employment stability measures. As a result, 7,034 workers may apply for government wage subsidies. The Ministry of Labor provides up to 70 percent of lost wages, capped at NT$12,100 per month.
Eligible sectors include food, steel, textiles, plastics, metal, electrical machinery, and automotive industries. Officials emphasized that these subsidies help stabilize the labor market while allowing companies to manage tariff-related challenges.
The Taiwan furlough surge underscores the vulnerability of export-reliant industries to global trade pressures. Analysts warn that continued tariff tensions could lead to additional furloughs unless domestic support and export strategies improve.
Looking ahead, the Ministry of Labor will monitor the situation closely and adjust employment measures as needed. Companies are encouraged to access subsidies and coordinate with authorities to minimize disruptions.
The Taiwan furlough surge shows both the immediate effects of global trade policies and the government’s efforts to protect workers. It also demonstrates how targeted support can ease labor market pressures in vulnerable sectors.
