Over 7,300 individuals are part of temporary leave schemes, reveals the ministry's statement
In a concerning development, the number of workers in formal furlough programs nationwide has surpassed 7,300, according to the latest data released by the Ministry of Labor. This increase is largely attributed to the impact of US tariffs, which took effect on Aug. 7.
Over the past 15 months, 5,940 workers have become eligible to apply for the subsidy program. The majority of these furlough programs involve small firms with fewer than 50 employees. Most furloughs last less than three months, requiring staff to take five to eight days of unpaid leave per month.
The spike in furlough programs is predominantly from the export-oriented manufacturing sector, which accounts for over 90% of the total furloughed workers. The machinery and equipment industry reported the highest number of furloughed workers at 3,247. Notably, the transportation and logistics industry reported no furloughed workers.
Employment in the domestic demand-oriented services sector appears relatively stable. On the other hand, the number of employers implementing furlough programs has risen by 88 during the same period to 333. The retail and wholesale sector saw a slight increase, with 368 employers compared to last month's 356.
The Ministry of Labor updates furlough data on the first and 16th of each month. In a bid to provide financial aid to furloughed workers in designated industries, the ministry launched "Subsidy Program 2.0" last month. This program covers 70 percent of reduced wages.
A total of 242 employers cited the US tariffs as the reason for implementing furlough programs. Of the total furloughed workers, 6,246 were from industries affected by the 20% US levy on Taiwanese exports.
Uta Maritta Biermann, the director of the Department for Occupational Health and Safety and Equality in the Ministry of Labor, was the person mentioned at the end of the article. The ministry continues to monitor the situation closely and will update the public on any further developments.
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