The number of Taiwanese companies which have reduced hours and required unpaid leave is increasing. That’s according to a Labor Ministry figures released on Thursday. The ministry says 2,300 companies have furloughed over 16,000 employees, an increase of 65 companies and 1,403 workers compared to last month.
Especially concerning is the manufacturing sector. 283 manufacturing companies have furloughed more than 6,000 employees, the highest number since December 2020.
The Labor Ministry says nearly 90% of new furloughs came from the manufacturing industry, mainly due to a decline in foreign demand.
The ministry says most companies are implementing leave on a temporary basis. Figures show companies are requiring workers to take 4 extra unpaid days off per month on average. It adds that the unpaid leave policies could be recalled if demand increases.
As for domestic demand, the ministry says it remains mostly unchanged, with travel agencies being the most affected. It says authorities are still hoping an increase in international tourism will boost the economy.