Taiwan Hits 25-Year Unemployment Low at 3.35%

Taiwan just achieved something most countries dream about: the lowest unemployment rate in 25 years.

The island nation's unemployment fell to 3.35% in 2025, down from 3.38% the previous year. December alone saw the rate dip to 3.30%, with experts expecting it to drop even further in January.

The numbers tell a story of growing economic strength. About 398,000 people were unemployed in December, down 3,000 from the month before. Job losses from business closures and downsizing fell by roughly 2,000 people.

Tan Wen-ling, deputy director of Taiwan's statistics department, credits the upcoming Lunar New Year holiday for the positive trend. Consumer spending during the celebration typically creates temporary jobs and boosts hiring across retail and service sectors.

Good news from the United States helped brighten the outlook too. America indicated it would cut tariffs on Taiwanese goods to 15%, a move that should particularly benefit traditional industries on the island.

The December data showed 403,000 people unemployed on average throughout 2025, representing 3,000 fewer jobless workers compared to 2024. That steady decline reflects consistent economic momentum rather than a temporary blip.

The Ripple Effect

The unemployment win tells only part of Taiwan's labor success story. The real breakthrough came in workforce participation, which climbed to 59.43% last year, the highest level in 36 years.

Women returning to work drove much of this surge. Government policies specifically designed to support middle-aged and older workers also played a crucial role in bringing more people into the job market.

The statistics department recognized this shift matters. Starting this month, officials will track unemployment rates differently to better capture the actual state of Taiwan's labor market, focusing on the national resident population.

Not everything looks perfect. Time-related underemployment, which tracks workers wanting full-time hours but stuck with less than 35 hours weekly, rose slightly to 127,000 people in December. Global overcapacity in traditional industries and seasonal agricultural patterns during winter contributed to this bump.

Still, Taiwan is heading into 2026 with genuine momentum and a labor market most economies would envy.

##