February jobless rate has first rise in six months

This article was published by the Taiwan Headlines on March 31, 2006. It reports that Taiwan's jobless rate increased for the first time in six months, to 3.92 percent in February 2006. This translates into a total unemployed population of 408,000 persons.

Compared to January 2006, the jobless rate increased by 0.12 percent, and the number of the employed decreased by 32,000 persons. According to the Directorate General of Budget, Accounting & Statistics, the rise in the jobless rate can be attributed to the seasonal leaves of temporary employees after the Chinese New Year holidays.

The rise of the jobless rate can also be attributed to the shrinking workforce in the consumer banking units of domestic banks due to the recent proliferation of bad consumer loans, including those to the credit- and cash-card holders. Official statistics show that the financial and insurance industry slashed 5,000 employees in January 2006, and cut an additional 3,000 jobs in February 2006.

The manufacturing and construction industries also witnessed workforce declines in February 2006. However, service industries such as retailing, restaurants and hotels boasted a combined rise of 5,000-10,000 persons on their payrolls in that month.

Meanwhile, since October 2005, non-agricultural sectors in general have witnessed an upward trend in their substantive regular monthly pay. In January 2006, monthly salary posted a fourth monthly consecutive rise to an average of NT$36,000 (US$1,059), excluding year-end bonuses.