Taiwan Jobless Rate Hits 26-Year Low at 3.29%

Workers across Taiwan are staying put in their jobs, and the numbers prove it. The unemployment rate fell to 3.29% last month, marking the lowest level since 2000 and capping five straight months of improvement.

The drop reflects something remarkable happening in Taiwan's economy. Companies are increasing salaries and handing out bigger bonuses as business conditions improve, giving workers fewer reasons to leave.

DGBAS Deputy Director Tan Wen-ling says the pattern is clear. "Improved business conditions, salary hikes, a rallying stock market and higher bonus payouts have lifted household disposable income," she explained.

The total number of unemployed people fell by 2,000 to just 396,000. Most notably, workers leaving jobs due to dissatisfaction dropped by 2,000, a sign that companies are treating employees better.

Taiwan's economic boom is the engine driving these gains. The economy expanded 8.68% last year, with projections of 7.71% growth this year, encouraging businesses to invest more in their workforce.

The stock market surge has created a wealth effect that's spreading through the economy. As investment portfolios grow, people spend more confidently, creating demand that keeps employment stable.

For the first time, Taiwan is measuring unemployment using "resident population" data, which includes migrant workers and foreign professionals while excluding nationals working overseas. Under this more accurate measure, unemployment stands even lower at 3.25%.

The Ripple Effect: This employment boom touches every corner of Taiwanese society. Young people entering the workforce face better prospects than their older siblings did. Families have more financial security to plan for the future. Small businesses find customers willing to spend on extras, not just necessities.

The stability cascades beyond paychecks. When workers feel secure, they invest in education, take entrepreneurial risks, and support their communities. Taiwan's tech sector, already a global powerhouse, benefits from a confident workforce willing to innovate rather than simply hold on.

Even as some sectors face restructuring, with 3,000 more layoffs from business downsizing, the overall trend shows resilience. Export growth in the second half of last year helped cushion those transitions.

Workers who collected year-end bonuses may push unemployment slightly higher in coming months as job switching picks up, but economists view this as healthy movement in a dynamic economy. People confident enough to seek better opportunities signal strength, not weakness.

Taiwan's labor market transformation shows what's possible when economic growth translates into shared prosperity, not just corporate profits.