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Taiwan offers subsidies to alleviate labor shortage issues

Reporter Vivian Hsiao
Release time:2023/07/10 10:49
Last update time:2023/07/10 10:49
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TAIPEI (TVBS News) — The pandemic significantly impacted Taiwan's food service, hospitality, and tourism industries.

Now, as businesses reopen, these industries face a severe labor shortage. A hot pot restaurant reported a 3-month wait to find new employees. 

 

Staff member Lin Chien-hung confirmed, "It's true we’re short of staff," adding that finding suitable high-level management personnel and servers has become difficult.

His colleague Huang Chien-chih revealed that recruitment remains hard despite the restaurant offering NT$50,000 a month.

To address this issue, the Ministry of Labor (MOL) allocated NT$1 billion to encourage those laid off during the pandemic to return to work.
 

Workers in the food service industry who meet the criteria and earn a minimum wage of NT$32,000 can receive a monthly subsidy of NT$6,000 for a year.

Additionally, middle-aged individuals and jobseekers can receive up to NT$10,000.

However, many believe the subsidies will be of little help in the long run.

"After a year, if the employer doesn’t raise their wages to bridge the gap, then when the subsidy program ends, wages are still low," National Taiwan University Graduate Institute of National Development Associate Professor Hsin Ping-lung said.

"This may result in them leaving the jobs again, so long-term speaking, it won’t be effective."

Experts recommend that the authorities require employers to match employees' salaries after the subsidy period ends to ensure a stable workforce.

Given Taiwan's low birth rate, attracting foreign talent and retaining existing workers is crucial.