In recent years, Taiwan’s job market has been the underperformer among those of the developed Asian economies and there is much room for improvement. Following the global financial crisis, the unemployment rate persistently increased. Gradually, the situation improved and unemployment has recently fallen back below 4%, based on figures from the ROC Directorate-General of Budget, Accounting and Statistics.
Today, employment conditions are stable. Although job creation remains comparatively flat because of slow economic growth, companies have begun replacing headcount when employees leave their organisations.
Taiwan has an export-manufacturing-focused economy therefore improvements in exports have a significant positive impact on the economy. In the third quarter of 2014, real merchandise and services exports rose by a respectable 7.3% according to the Directorate General of Budget, Accounting and Statistics. Given this result, it is unsurprising that 63% of survey respondents state that they plan to increase headcount.
In addition, some new companies are entering the market while others are beefing up headcount. Taiwan has many technology firms focusing on innovation and some of these are hiring, seeking designers for electronic goods and experts in R&D. Retail and luxury goods companies are also performing relatively well, and hiring accordingly.
However, this does not mean that Taiwanese companies will be able to easily satisfy their human resources needs. In fact, a serious ‘brain drain’ continues to affect Taiwan. As Andrew Wright, Associate Director of Michael Page Taiwan explains, “Companies – in particular tech companies – from the mainland, Hong Kong and Singapore, as well as other locations around the world including California, target Taiwanese talent. Because salaries in Taiwan have been stagnant in recent years, Taiwanese who go abroad for their career know that they will need to take a pay cut if they decide to return to Taiwan.”
For full details see the 2015 Greater China Salary & Employment outlook report .