The labor market lost momentum in April, with the number of workers in the industrial and service sectors falling by 3,000 from the previous month to 8,164,000, as local manufacturers were affected by a global economic slowdown, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday.
The data came after manufacturers reduced headcounts by 5,000, as global inflation and interest rate hikes curbed demand for electronic gadgets. Many local firms supply electronic components for such products.
Outbound shipments have contracted for nine consecutive months and might not recover until global technology firms introduce next-generation products, which would stimulate sales ahead of the high season, the Ministry of Finance said last week.
Photo: CNA
Companies tend to reduce overtime hours to cope with slowing business before letting their employees go, Census Department Deputy Director Chen Hui-hsin (陳惠欣) said.
That is why overtime hours shrank 7.1 percent year-on-year to 146.5 hours in April, falling for the 10th straight month, Chen said.
Declines in headcounts and overtime hours confirm that the manufacturing industry is facing economic headwinds, she added.
By contrast, service providers expanded their payrolls to meet rising business amid continued recovery from the COVID-19 pandemic, which helped mitigate the downturn in the job market, the DGBAS said.
The accession rate — the number of new employees added to payrolls — weakened to 2.14 percent, while the exit rate moderated to 2.18 percent, meaning that more people opted to leave the market than join it amid an ongoing trend, the DGBAS said.
The average regular monthly wage rose 2.27 percent annually to NT$45,363 in April, while the average total wage inched up 0.36 percent to NT$51,658 after including performance-based commissions, overtime compensation and bonuses, the agency said.
Financial service providers, video content publishers, as well as telecommunication and communications operators, offered a higher average regular monthly wage of more than NT$65,000, almost twice the NT$34,000 for workers at hotels, restaurants, hair salons and massage parlors, DGBAS data showed.
The average regular wage in the first four months of this year rose 2.37 percent year-on-year to NT$45,306 per month, while the average total wage gained 1.96 percent to NT$65,824, the DGBAS said.
However, the 2.54 percent inflation rate during the period tapered the gains to 0.16 percent and 0.56 percent respectively, the agency added.
The decline in real wages might have eased last month, when the consumer price index grew a mild 2.02 percent from a year earlier, Chen said.
However, inflationary pressures might return this month due to the holiday effect caused by the Dragon Boat Festival, the DGBAS said last week.
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