Taiwan’s manpower shortage puzzle
Taiwan’s 1111 Manpower Bank released its findings about Taiwan’s manpower shortage on November 22, 2017, showing that 66% of Taiwanese businesses say there is a manpower shortage in Taiwan.
According to the survey, 46.4% note that worker mobility in Taiwan is high, 29.4% note that there is a “disconnect” of talent, 23.4% say Taiwan’s wages are low, 21.3% say the caliber of Taiwanese workers is not high enough, and 16.2% note that Taiwan’s brain drain has impacted local businesses.
There are 50.6% of Taiwanese businesses that say the most difficult problem in personnel recruitment is to find the right talent, 30.8% say the most difficult problem is to keep good workers, and 18.5% say the most difficult problem is to nurture talent and good workers.
There are 49.6% of Taiwanese businesses that implement regular salary adjustments to keep good workers, 27.7% offer on the job training, and 23.3% give out cash rewards and bonuses.
Between 2004 and 2014, average annual wages in Taiwan grew 2.4%, behind the 8% in South Korea, 6.8% in Singapore, and 17.4% on the Chinese mainland.
In 2015, 724,000 Taiwanese worked overseas. In 2005, 340,000 worked overseas, 70% of them have university and college degrees, and 58% of them work on the Chinese mainland.
A survey of 1,375 responses conducted by Taiwan’s yes123 online job recruitment website from October 19 to November 1, 2017, shows that 66.8% of Taiwanese businesses as of November 1, 2017, will give year-end bonuses equivalent to 1.1 months of salary in 2017, 4% say they will not offer any bonuses for 2017, and 29.2% have not decided.
In 2016, 64.7% of Taiwanese businesses gave year-end bonuses equivalent to 1.03 months of salary, 7.5% did not give any bonuses, and 27.8% were undecided as of November of 2016.
There were 67.8% of Taiwanese businesses that indicated the year-end bonuses would be the same as in 2016, 23% say they would increase the amount of the bonus, 9.2% say they would reduce the amount of the bonus, and among the businesses that say they will reduce the amount of the bonus, 83% say the Tsai Ing-wen government’s new work schedule law has caused an increase in personnel cost. The same reason is also cited by Taiwanese businesses that have yet to decide whether to offer year-end bonuses as of November 1, 2017, and by those businesses that have decided not to give year-end bonuses in 2017.
Taiwan’s October 2017 unemployment rate was 3.75%, a drop of 0.02% from the 3.77% in September 2017. There were 443,000 people out of work in October 2017 in Taiwan.
The manpower shortage puzzle in Taiwan is that while 66% of Taiwanese businesses say there is a manpower shortage problem and 50.6% of Taiwanese businesses say the most difficult problem in personnel recruitment is finding the right talent and worker, there is simultaneously a tremendous brain drain.