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2025-05-01

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High tariffs affect Taiwan's labor market by 32%. Hong Shenhan proposed four measures to ensure job security for workers.

High tariffs affect Taiwan's labor market by 32%. Hong Shenhan proposed four measures to ensure job security for workers.
讀後心得
U.S. President Trump announced a 32% tariff on Taiwan, and the Taiwan Executive Yuan subsequently launched a support plan of 70 billion yuan aimed at improving six major aspects of the export supply chain. Minister of Labor Hsu Ming-chun pointed out in a press conference that the tariff will impact the economy and the job market, proposing four measures to safeguard employment: proactively visiting companies and labor unions, reducing the risk of layoffs for existing workers, helping unemployed workers return to the workforce, and providing job training and subsidies for new graduates. He emphasized the need to integrate resources and enhance the effectiveness of the measures, with a related budget of 15 billion yuan.

U.S. President Trump announced a reciprocal tariff policy, imposing a 32% tariff on Taiwan. The Executive Yuan recently declared that it will invest 70 billion TWD through six major areas and fourteen measures to support our country's export supply chain. Minister of Labor Hsu Ming-han proposed four specific measures in a press conference addressing the three major issues facing "employment stability."

  • Hsu Ming-han pointed out that the impact of tariffs will affect the economy and industry profitability, subsequently leading to uncertainty in the job market. He raised three major concerns: first, to prevent companies from prematurely terminating labor contracts due to profits or impacts; second, to avoid unemployed workers from being unable to return to the workforce due to tight job opportunities; and third, to reduce the employment difficulties faced by first-time job seekers and graduating youth.
  • The first measure is to actively visit both labor and management. In addition to targeting business units, there will be special contact with potentially affected unions to understand changes in the frontline job market and to seek cooperation in responding to potential changes.
  • The second measure is aimed at assuring job security for workers. The Ministry of Labor hopes to reduce the risk of dismissal for employees by proposing salary subsidies, reduced working hours, encouraging businesses to provide training, and assisting micro-enterprises in entrepreneurship, in order to maintain employment stability.
  • The third measure addresses workers who have already been impacted, providing support to help them successfully return to the job market. The Ministry of Labor will provide enterprises with incentives, including hiring bonuses and the expansion of public service job vacancies, to lower the barriers for workers to return.
  • The final measure focuses on young people and nearing-graduation students, offering training for job positions, such as pre-employment training subsidies, and expanding the distribution of job-seeking allowances and employment bonuses, with subsidies potentially reaching up to one million TWD.

Hsu Ming-han emphasized that these four measures have had successful experiences in the past and will further enhance the integration of related resources to improve implementation efficiency, as well as relax possible application conditions and thresholds. Currently, the funding for these measures has reached 15 billion TWD.