The number of newborns in Taiwan has dropped to 140,000 a year from a peak of 440,000 a year. The nation is approaching a serious shortage of labor and it will happen before these 140,000 newborns grow up.
Taiwan has been dealing with a comprehensive shortage of educated and skilled labor in the manufacturing and service industries, including in semiconductors, construction, catering and agriculture, which is affecting national development.
Unfortunately, the government still relies on outdated concepts, believing that migrant workers would “steal jobs” from local workers. Such a protectionist mindset shows a wrong understanding of market economies and should be abandoned.
Industry consists of upstream and downstream sectors, and every job is different. The relationship between industry chains and jobs is complementary.
Taipei has the highest concentration of job opportunities and offers the highest remuneration. More than half of the working population in Taipei are skilled workers from other cities and counties. If the government insisted that only Taipei residents could seek work there, the consequences would be dire.
Singapore and Israel are strong and rich countries precisely because they take advantage of imported labor. As tiny as Singapore is, 1.4 million foreigners work in the country, or 40 percent of its working population. Malaysia has a population of 33 million, but relies on 3 million foreign workers.
Taiwan still considers the labor force from a protectionist perspective and governmental departments have tried to fend off foreign workers when designing labor policy.
Foreign labor has been treated as an “add-on.” Only a small number of migrant workers can enter and work in Taiwan, and they are severely regulated. An application to work in Taiwan requires numerous details about what industries the applicant has worked in and what job they would do here. It also comes with many prohibitions.
Facing a comprehensive labor shortage, Taiwan must address the issue of its low birthrate. In the near future, the number of local workers will decrease year by year. Migrant workers are not just an “add-on” to Taiwan’s labor force, but an essential resource. If the government refuses to change its protectionist mindset, Taiwan’s progress will be seriously hindered.
The semiconductor industry wants to secure as many workers as it can, but the labor force in Taiwan is insufficient. Semiconductor companies have been trying to grab workers from the manufacturing industry, leading to a severe shortage in that sector. The manufacturing industry pulls workers from the service industry, and so on.
Entrepreneurs in the service industry say that they would hire anybody, as long as they have hands and feet. A regular college graduate can look forward to more than five jobs to choose from. It is no longer necessary to “protect” local workers.
The labor shortage is also a national security issue. With only 140,000 newborns this year, the semiconductor industry is likely to snatch up a significant number of them when they enter the workforce. Taiwan’s security to an extent depends on semiconductor companies, not just for economic growth, but also strategic planning, but people are also needed in the armed forces.
Rather than “protecting” local workers, Taiwan should open up to foreign workers. This would be the best way to optimize the nation’s resources.
Attracting more migrant workers would not only be beneficial for national defense, but also for diplomatic relations. If China were to attack Taiwan, countries with people working here would pay more attention.
Taiwan is a nation founded upon industry and commerce. Its vitality is dependent on the development of the industrial economy. With a lot of foreign workers, diplomatic relations would be bolstered. Together with the “silicon shield,” national security would be enhanced.
It is time to revise Taiwan’s labor policies and lift unnecessary restrictions on foreign workers.
Tommy Lin is director of Wu Fu Eye Clinic and president of the Formosa Republican Association.
Translated by Emma Liu
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