The number of workers employed in the local manufacturing sector fell in October as many export-oriented Taiwanese manufacturers felt the effects from the weakening global economy, according to the Directorate General of Budget, Accounting and Statistics (DGBAS).
Data compiled by the DGBAS showed the number of workers on the payrolls of manufacturers in Taiwan fell by about 1,000 from a month earlier to about 2.88 million in October, while the number of overtime working hours in the sector dropped by 2.8 hours year-on-year in October, marking the fourth consecutive month of year-on-year decline.
DGBAS Census Department Deputy Director Chen Hui-hsin (???) said the weakness in hiring and a decline in overtime hours in the manufacturing sector both pointed to a slowdown in the global market.
In a slowing economy, Chen said, employers tend to scale back the number of overtime working hours as an initial response to falling demand before implementing cuts in their workforce.
Before the impact resulting from the COVID-19 pandemic in 2021, the number of workers hired in the local manufacturing sector in the fourth quarter from 2016-2020 showed signs of increasing, but during the current October-December period, the uptrend seems to have been reversed.
In the industrial sector, which includes the manufacturing sector, the number of those employed fell by 1,000 from a month earlier to 3.43 million in October, while the number of workers in the service sector bucked the downturn, rising 6,000 from a month earlier to 4.76 million, the DGBAS said.
Service sector
Chen said the improvement in hiring in the service sector reflected an increase in business activities and private consumption amid eased fears over COVID-19 infections.
In the service sector, the number of employees in the retail/wholesale industry and in the lodging and food/beverage industry rose by 2,000 and 4,000, respectively, from a month earlier to 1.71 million and 488,000 in October, the DGBAS said, adding that the lodging and food/beverage industry saw an increase in hiring for the fourth consecutive month.
As of the end of October, the number of workers in the industrial and service sectors in Taiwan totaled 8.19 million, up 5,000 or 0.06 percent from the end of September, the DGBAS said.
In addition to an increase in hiring, Chen said, the lodging and food/beverage industry also recorded an increase of 5.59 percent from a year earlier in its average regular wage in the first 10 months of this year, while the transportation and warehousing industry, and the arts, entertainment and leisure industry saw their average regular wages rising 3.68 percent and 3.65 percent, respectively, from a year earlier.
Inflation erodes income
According to the DGBAS, the average nominal regular wage in the local industrial and service sectors in the 10-month period totaled NT$44,339 (US$1,444), up 2.90 percent from a year earlier, marking the highest year-on-year growth since 2000, when it hit 3.08 percent.
After inflationary adjustments, however, the average real regular wage fell by 0.13 percent from a year earlier to NT$41,346, marking the first decline in six years, the DGBAS said.
Rising inflation also eroded the average monthly earnings, which are made up of regular wages and non-regular wages such as overtime pay and bonuses, the DGBAS said. The real average monthly earnings in the first 10 months of this year rose only 0.46 percent from a year earlier to NT$54,434, while before inflationary adjustments, the average nominal monthly earnings totaled NT$58,375, up 3.51 percent from a year earlier.
In the 10-month period, Taiwan’s consumer price index rose 3.04 percent from a year earlier, according to the DGBAS’s data.
In October alone, the average regular wage hit NT$44,528, up NT$131 or 0.30 percent from a month earlier and also up NT$938 or 2.15 percent from a year earlier, the data indicated.
The average monthly earnings in October totaled NT$50,449, down NT$2,269 or 4.30 percent from a month earlier, but up NT$337 or 0.67 percent from a year earlier, the data showed.
Source: Focus Taiwan News Channel