Taiwan’s manufacturers are cutting their workforce amid slowing economic growth and weakening global demand. According to the Ministry of Labor, by the end of February 2023, a total of 2,392 businesses had employees on furlough, affecting 17,532 workers.
Of all the workers affected, almost 7,000 are in manufacturing, overtaking tour operators, which was one of the largest sectors on furlough scheme during the height of the pandemic, along with restaurants and hotels. Back then, layoffs and furloughs were a common occurrence in the service sector, while manufacturing saw a surge of demand for goods and record-high revenues. In the post-COVID era, the food business is back in full swing and employing new workers, while factories are cutting back on operations.