Taipei: The number of workers in formal furlough programs in Taiwan decreased in the first half of August due to a recovery in export orders, the Ministry of Labor (MOL) announced on Monday. Data from the MOL indicated a reduction of 620 furloughed workers from the end of July, bringing the total to 2,406 by August 15. Simultaneously, the number of employers implementing unpaid leave programs decreased by 64 to 181.

According to Focus Taiwan, Wang Chin-jung, deputy head of the MOL's Labor Conditions and Equal Employment Division, stated that the decline in furloughed workers was driven by increased export orders. This prompted 77 manufacturers to end their furlough plans earlier than scheduled, enabling approximately 866 workers to return to production lines during the 15-day period. Most of these manufacturers were small and medium-sized enterprises with fewer than 100 employees.

However, the manufacturing sector continued to have the highest number of furloughed workers among Taiwan's major business sectors, largely due to U.S. tariff policies. As of mid-August, 134 employers in this sector reported 2,167 furloughed workers, accounting for about 90 percent of the total. Within the manufacturing sector, the metal and electric machinery industry had the largest number of furloughed workers, with the number decreasing from 2,276 to 1,727 between July 31 and August 15. The number of firms with furlough programs in this industry also fell from 139 to 90 during this period.

Wang noted that the impact of U.S. tariff policies has been subsiding, as evidenced by a reduction of 611 furloughed workers impacted by these tariffs, bringing the total to 1,953 by August 15. The service sector remained stable, with the retail and wholesale business seeing a decrease in furloughed workers from 242 at the end of July to 204 by mid-August. Additionally, furloughed workers in the lodging and food/beverage industry declined from 21 to four.

Since February, the overall number of furloughed workers nationwide has steadily decreased to around 2,000, suggesting stabilization in the job market, Wang said. The MOL updates its furloughed worker data on the 1st and 16th of each month, reporting the number of employees placed on unpaid leave by registered companies. Most of these programs are implemented by small firms with fewer than 50 employees. Typically, unpaid leave programs last less than three months, with employees taking five to eight days of unpaid leave per month.