cens logo

Taiwan's Net Personnel Increase Estimated to Dip to 7-Year Low in Q2

Mar 09, 2016 | By Ken Liu

Taiwan's net personnel increase is estimated to dip to 7-year low in the second quarter. Taiwan's net personnel increase is estimated to dip to 7-year low in the second quarter.

Taiwan's Ministry of Labor (MOL) has released a survey that estimates Taiwan's enterprises to add a net 19,000-plus workers overall in the second quarter of this year, plunging 57 percent year on year to a seven-year low.

The ministry conducted the survey in January this year on enterprises with over 30 employees to see if they will recruit more workers by the end of April. The ministry received 3,010 effective samples in the survey.

The survey shows that only 18.1 percent of the responding enterprises said they would employ more workers in the second quarter relative to their recruitment program in the previous quarter, 68.9 percent replied they would not employ more workers, 4.2 percent felt they would downsize staff, and the rest said it was hard to predict staffing needs at the time of the survey.

The survey shows that enterprises with plans to add more employees in the second quarter will hire a total of 30,500 workers, while those with plans to downsize staff will totally cut personnel by around 11,200. The difference between the added staff and cutback in personnel results in a net growth of 19,300 employees.

Of all the surveyed industrial sectors, the manufacturing sector plans the highest net increase, followed by the retail sector. In the manufacturing sector, the net growth will mostly be created by electronic-component makers, metallic-product makers, computer-electronics makers, and optics-product makers, whose increases vary between 1,200 to 1,600 workers.

The manufacturing sector has been the major creator of job growth in Taiwan, but also being the most vulnerable to economic fluctuations, with Taiwan's exports having been rocked by weakening economic growth in China, buyer of some 40 percent of the island's exports, as well as plunging crude oil prices, South Korea-China free trade agreements, relatively sagging Japanese yen that has sapped competitiveness of Taiwan-made machinery. Although the sector as a whole plans to increase a net 8,300 workers in the second quarter, which is clearly an improvement from the previous quarter, the net number is only around 40 percent of the net 21,000 workers it had hired in the same quarter of 2015.

The island's services industry as a whole plans to add a net 11,000 workers in the second quarter, but the number is 3,400 workers down from the net number it added in the first quarter this year. The net quarter-on-quarter reduction is also reflected in the food and beverage sector.

The ministry points out that based on the double-digit pace of net employment increase in the island's manufacturing sector and the net reduction in the local services industry, the business outlook of the services sector has to be closely watched.

The ministry says short-term measures to boost consumer demand, expansionary finance (easier credit), and sustainable private investment will help shore up manpower demand of the island's services sector.

Based on the survey, the ministry points out that the island's manpower demand will stay weak for a second quarter if the recent estimates eventually become reality. This, it adds, suggests the lingering impact of the lukewarm global economy on the job market. Some observers suggest, however, that stagnant wages in Taiwan also sap consumer spending to weaken staffing needs in the services sector. Matsusei, an upscale Japanese supermarket chain in Taiwan, has shuttered after many years on the scene to show at least lack of spending among consumers willing to pay moderately more for groceries.      

Senor ministry officials point out that the decelerating global economy and intensifying competition worldwide are not likely to improve in the short term, resulting in the island's enterprises having become more prudent than before in their recruitment plans. 

The ministry's statistics show that in January alone 20 companies on the island launched massive layoffs, sacking a total of 1,897 workers.

Among the companies, seven are manufacturers and six are retailers. The above-mentioned supermarket chain, reportedly Taiwan's No.2 grocery store chain, laid off 796 staff, with display-panel maker CANDO Corp. axing 477 workers, making them two high-profile cases of sizable staff downsizing in January.

Testoni, an established Italian brand of high-end men's footwear, located among the designer boutiques adjacent the Taipei Regent on Zhongshan North Road has also recently closed shop, as has Coach, the American designer accessories brand, and Geox, the shoe brand known for perforated shoes, both of which shuttered their outlets along the same road last year. 

Industry Reports

K, the leading global plastic and rubber trade fair (Photo courtesy of Messe Düsseldorf/ctillmann)

K, The World's Leading Trade Fair for Plastic and Rubber Industry

Jul 24, 2020

2019 K Show, the leading global trade fair for the plastics and rubber industry, had been held in Düsseldorf on 16-23 October, 2019. There were 3,330 exhibitors from 63 nations proved impressively: plastics continue to be an innovative, indispensable material. But they also unanimously underscored the necessity of having operational circular economies along the complete material chain and to this...

Photo courtesy of CENS

Digital Healthcare & Technology at the Heart of Las Vegas CES 2020

Jul 14, 2020

■ Hubert Chih The number of healthcare exhibitors at the 2020 CES in Las Vegas increased significantly by 23% from 2019. According to the analysis and report by the CES organizer, digital healthcare and technology were the focus in the healthcare exhibition. In addition to the continued expansion of healthcare coverage, the reduction of healthcare costs, the improvement of effectiveness and th...

The Taiwan Hardware Show sees global buyer attendance. (Photo provided by Kaigo Co.)

Taiwan's Hand Tools Seeking Opportunities Amid Global Crisis

Jul 10, 2020

Due to the COVID-19 pandemic sweeping the globe, most of the international hardware shows slated for this year has been moved to 2021. However, as Taiwan’s efforts combating the new virus has proven to be successful, the 2020 Taiwan Hardware Show (THS) will continue as scheduled, beginning on Oct. 13 and ending on the 15th at the Taichung International Exhibition Center, thus becoming the only sh...

Industry In-Focus

SINOSTEEL Corporation: Rising price in Steel</h2>

SINOSTEEL Corporation: Rising price in Steel

Jun 05, 2020

Brazil’s new crown pneumonia epidemic has rapidly increased. Brazil’s Vale, the world’s largest iron ore producer, is facing an out-of-control impact. The market is worried that iron ore production and sales will be affected. new highs. Experts from Sinosteel (2002) evaluated that steel prices will rise steadily under the effect of rising costs, with a promising outlook. According to a legal p...

Apple Invests Millions in LED Plant in Taiwan</h2>

Apple Invests Millions in LED Plant in Taiwan

Jun 01, 2020

Apple is considering to invest over US$330 million in a factory in northern Taiwan to manufacture both LED and micro-LED displays for its iPhones, iPads, MacBooks, and other new devices. Apple is teaming up on the new factory with Epistar, Taiwan's top LED producer, and Taiwanese LCD panel maker, AU Optronics. The plant will be located in the Longtan branch of the Hsinchu Science Park and Appl...

Taiwan Machinery Was Applauded in COVID-19</h2>

Taiwan Machinery Was Applauded in COVID-19

May 18, 2020

What the epidemic showed was the amazing flexibility of Taiwan's machine tool industry. Taiwan, which has allowed the semiconductor industry to specialize in the past, has finally realized that these machine tool industries with amazing strength are the "invisible champions" of Taiwan's economy. In early February, three companies -- Habor Precision, Tongtai Machine & Tool and Taiwan Takisawa -...

Supplier News

With professional technics and rigorous quality control, Kung Hsing gains high-reputation in the industry</h2>

With professional technics and rigorous quality control, Kung Hsing gains high-reputation in the industry

Jul 23, 2020

Kung Hsing Plastic Machinery Co., LTD., founded in 1972, is the brainchild of the company President Tsai Chin-lien’s over 48 years of experience in designing and producing extrusion machines. The firm stood by its belief to uphold integrity and offer the best quality and services, eventually becoming a leader in the extrusion machinery industry in Taiwan. Kung Hsing currently has two factories; t...




Jul 21, 2020

■ Tseng Lung-nan Intype Enterprise has built up 55 years of experience in producing extruders, though the firm is placing greater consideration on rapidly degrading of the global environment. In the past 20 years, Intype has become an active contributor to building up a global ecosystem, enabling them to reuse the products manufactured by their own extruders and avoid further waste. The firm t...


YFCM Carbon Fiber Driveshaft Lauded in the field of Modified Cars for its Flexibility </h2>

YFCM Carbon Fiber Driveshaft Lauded in the field of Modified Cars for its Flexibility

Jul 14, 2020

■Hsiao Yung-le Yifeng Technology Co., Ltd. specializes in the research and development of carbon fiber transmission shafts and the manufacture of carbon fiber related products.The carbon fiber material has the characteristics of lightweight, impact resistance, fatigue resistance, and corrosion, and chemical stability is quite high. The product type is increasing in the extensive range with an ...


Insiders' Views

Caption: Pictured from front row, third right, Changhua County Government Economic Affairs Department Director Liu Yu-ping, County Magistrate Wang Huei-mei, Secretary Chen Bo-tsun pose in front of the exhibition booth. (Photo provided by CHCIA)

Changhua County Government Shores up Biz-Matching to Global Buyers

Nov 18, 2019

■Yang Feng-Chun In a bid to assist manufacturers in Changhua County to expand their market reach overseas against severe competition in the globalized market, Changhua County Government has been an active player in pushing for a makeover and innovation of its local small and medium-sized enterprises. This is done in hopes of establishing stronger connection with international markets. An ex...

Paul Master offers high-quality chassis and engines parts for passenger cars, trucks, and industrial trucks. (Photo courtesy of Paul Master)

Paul Master Builds Reputation with Auto Chassis and Engine Parts

Nov 18, 2019

Founded in 1980, Paul Master Auto Parts Co. is headquartered in Taiwan, a professional manufacturer of chassis and engines parts for passenger cars, trucks, and industrial trucks including forklifts. General Manager Terry Liang said the company has its own professional design department, which provides customized products and specifications for global buyers, including automobile steering and...


Nan Hoang Traffic Instrument Co., Ltd.</h2><p class='subtitle'>Taiwan First brakes Technology Co., Ltd. </p>

Nan Hoang Traffic Instrument Co., Ltd.

Taiwan First brakes Technology Co., Ltd.

Sep 04, 2019

Nan Hoang Traffic Instrument Co., Ltd is one of the major manufacturers of automobile friction materials in Taiwan and globally. Chairman Austin Cheng has implemented the double-arrow strategy this year - own brand of “YangPo” is adopted to focus on global channels while the “NHC brand focuses on improving market shares in global markets, such as Europe, America, Asia, Australia, and the Middle E...

Exhibition Highlights

Koelnmesse (Beijing) Co., Ltd.

Announcement on Postponement of China International Hardware Show 2020 (CIHS 2020)

Jul 10, 2020

In view of the continuous spreading of COVID-19 all over the world and the latest epidemic prevention requirements of China and the government of Shanghai, in order to guarantee the health and safety of exhibitors, purchasers and professional visitors, China National Hardware Association and Koelnmesse have prudently decided to postpone China International Hardware Show 2020 (CIHS 2020) from Augu...

Automechanika Shanghai 2020 creates channels for cross-sector collaboration</h2>

Automechanika Shanghai 2020 creates channels for cross-sector collaboration

Jun 16, 2020

This year, Automechanika Shanghai continues to serve the entire automotive value chain by offering opportunities for information exchange, marketing, trade and education. Both vertically and horizontally, from OE, vehicle production to the aftermarket, it incorporates all elements of manufacturing, supply networks, services, new business models and information technology. Companies across the...

Messe Frankfurt (Shanghai) Co Ltd

CAPAS defers to 2021

Apr 20, 2020

Following the Chinese Government’s initiatives to prevent and control the COVID-19 outbreak, the organisers of the Chengdu International Trade Fair for Automotive Parts and Aftermarket Services (CAPAS) have announced the defer of the show’s 2020 edition. The fair, originally scheduled from 21 to 23 May 2020, will now be held from 20 to 22 May 2021. In China, the State Council issued an announc...