Taiwan’s unemployment rate rose for the third month in a row, reaching 3.45% in August. The increase reflects an influx of new graduates and other first-time job seekers entering the labor market. This rise in the unemployment rate highlights ongoing challenges for the country’s workforce.
Tan Wen-ling, deputy director of the Census Department at the Directorate General of Budget, Accounting and Statistics, attributed the rise to a seasonal surge of first-time job seekers. She noted that the unemployment rate usually drops in September. However, she added that trade tensions with the United States could push the rate higher this year.
Tan explained that the effects of tariffs are gradually appearing. More workers are experiencing reduced hours or temporary layoffs. These situations, however, are not included in the official unemployment rate statistics.
Data for August shows that 121,000 workers saw reduced hours due to the tariffs. This figure increased by 4,000 from July and represents the highest level this year. Despite this, Tan emphasized that the labor market remains generally stable. August’s unemployment rate is still the lowest recorded for the month in 25 years.
The total number of unemployed in August reached 415,000, marking a monthly increase of 6,000. Among them, 3,000 became unemployed due to business contractions or closures. Additionally, 2,000 first-time job seekers or workers leaving jobs for personal reasons joined the unemployed ranks.
Economists warn that if the unemployment rate continues to rise in September, trade tensions could further pressure the labor market. They also point out that the combination of seasonal job seekers and reduced work hours may signal broader economic challenges ahead.
Officials plan to monitor the employment situation closely. They will assess how businesses adjust to tariff pressures and whether additional support may be necessary. Meanwhile, first-time job seekers continue to enter the market, making labor conditions more competitive.
Overall, Taiwan’s labor market shows resilience but faces emerging risks. Policymakers must balance seasonal employment shifts with international trade impacts. The coming months will reveal how deeply tariffs affect the unemployment rate and overall economic stability.
