Taiwan's Aged Labor Participation Rate Down to 53.2% in 2013

Taiwan's labor participation rate of 55-59 year olds dropped to 53.2% in 2013, far lagging that of  Japan, South Korea and Singapore, according to the Directorate General of Budget, Accounting and Statistics (DGBAS).

C. S. Huang, director of the DGBAS Department of Census, indicates that Taiwan's labor participation rate of sub-50 year olds is similar to that of the said  countries, in contrast to that of 50-plus year olds on the island.

Huang says that the plummeting labor participation rate of Taiwan's aging workforce over the past decade is partly due to aversion against older workers, which motivated seniors to retire voluntarily. Also many retirees would rather do volunteer and charity work rather than develop  second careers.

However Huang fails to mention the prevalence of nepotism and cronyism in Taiwan, where many marginally-employable relatives are patronized by entrepreneurial family members; while age is the ultimate, legitimate reason to dismiss such personnel who are often more liability than asset to business.   

Taiwan's labor participation rate of 55-59 year olds declined to 53.2% last year, much lower than Japan's 80% as well as S. Korea and Singapore, whose percentages exceed 70%. The corresponding percentage of those aged 60-64 in Taiwan was 33.4%, also far lower than about 60% recorded in Japan, S. Korea and Singapore.

In 2002 Taiwan's non-working  population who left the labor market not due to age (over 65), marriage or studies, reached 517,000 persons, for 6.97% of the total non-working population, which rose to 1.01 million persons in the first three quarters this year, the highest on record, with the corresponding proportion growing to 12.37%.

As the graying society rises in Taiwan so is the proportion of 55-64 year olds. In recent years many working at public schools and civil servants have retired much earlier than the mandatory 65 years.

The statistics compiled by the National Development Council show the average retirement age of civil servants being 60.8 years in 1997, which tumbled to 55.4 years in 2013, with that of  educational staff in the same period down to 54 from 58. Last year the average retirement age of private business workers was 57.4.

Huang says that Taiwan's employers need to change attitudes toward elderly professionals who have valuable experience, skills and insights to offer, but are retired simply due to age. (JL)