• Last updated:2021-10-18

“Regulation Loosening, Industry Development, and Employment Support”

The Executive Yuan will sponsor the “Taiwan Economic Growth Convention” on June 18th and 19th in 2005 in support of the everlasting economic growth of Taiwan. The Council of Labor Affairs will be leading the discussion on “Labor Market and Human Resource Planning.”

Human resource is the foundation of industrial development. Labor turnover has shattered national boundaries in today’s globalized economy, which further underscores the importance of human resources. In particular, Taiwan’s admittance into the WTO in 2002 has had a strong impact on the structural adjustment and relocation of labor market in Taiwan’s traditional industries, giving rise to deficiencies in high-level professionals and blue-collar workforces. Furthermore, both Taiwan’s qualification as an aging society based on UN standards and its continual decline in birth rate aggravate the problem of human resources that are necessary for the development of domestic industries.

The topic of labor market and human resource planning has a broad and profound influence and is both an economic and social issue. Presently, Taiwan faces a shortage of high-level professionals and blue-collar workforces. In order to rectify this trend, the following policies must be implemented:

1. Setting up “Dispatch Worker Protection Acts”

Reduction of business limitations for employment of non-traditional hiring methods is a means to employment flexibility and a necessary course of action in face of globalized economic developments. Nevertheless, employment and income security must be taken into consideration to protect and assure labor rights. It is thus necessary to draft “Dispatch Worker Protection Acts” that clarifies the relationship between the employer and the employee and put into practice policies of joint responsibility between the two to secure the rights of dispatch workers. 

2. Reviewing relevant retirement policies and raising the minimum retirement age.

Present labor retirement and insurance policies led to Taiwan’s trend of early retirement. For instance, Labor Standard Law stipulates self-initiated retirement for laborers who are above the age of 55 and have worked for over fifteen years or those who have worked for over 25 years. Aside from negative accumulative effects on human capital due to early retirement from the workforce that affects the nation’s level of competitiveness, the additional cost of social security benefits takes a huge toll on society. Taking heed to the retirement policies of advanced countries, the Labor Standard Law, Workers’ Retirement Payment Regulation, and Labor Insurance Act should be amended, along with an increase in the retirement age. At the same time, anti-age discrimination regulations should be established to fully utilize middle-aged or senior labor resources and prevent employers from using age as an excuse for job dismissal or refusal.

3. Strengthening recruitment of overseas high-level professionals

High-level professionals are a key factor in strengthening the economic competitiveness of Taiwan. Although the country brings in approximately 10,000 overseas professionals each year, it remains inadequate in face of industry needs. The issue must be resolved to overcome the barriers of economic development and strengthen the nation’s international competitiveness. As such, creating an appealing environment for foreign workers, adjusting immigration policies according to economic developmental requirements, and providing tax incentives to attract foreign professionals are necessary measures. Furthermore, tax deductions must be utilized to enhance and nurture enhanced labor workforce, encouraging workers to pursue personal professional training. 

4. Increasing the participation rate of the female workforce

The participation rate of the female workforce in Taiwan is lower th

• Source:Department of General Planning
• Publication Date:2006-05-12
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