TAIPEI (TVBS News) — Taiwan’s average wage growth has lagged behind its GDP growth in recent years, leaving many workers feeling economically strained. Despite Taiwan’s GDP surpassing that of Japan and South Korea, median wages still fall short compared to these countries.
In an interview, National Chengchi University (NCCU, 政治大學) Postgraduate Rachel shared that she plans to intern and work in Japan as she believes Taiwan’s workplace environment is unfriendly to younger generations. Rachel prefers to explore opportunities overseas, particularly in Japan, where the starting salary gap between humanities and science graduates is smaller.
"It’s definitely getting increasingly expensive to live in Taipei. It feels like it’s almost catching up with Japan. The cost of living, combined with the pay range, makes the situation similar to Japan's, but salaries in Taiwan are still relatively lower," stated Rachael.
Professor Li Shih-hui (李世暉) of NCCU College of International Affairs noted that Taiwan’s wage growth lags behind that of Japan and South Korea, with uncontrolled housing prices making it increasingly difficult to cover living costs.
The International Monetary Fund (IMF) reported that in the first quarter of this year, Taiwan’s per capita GDP was US$34,430, South Korea’s was US$34,160, and Japan’s was US$33,140. However, many Taiwanese do not feel the benefits of this GDP growth. Scholars link this to the declining share of labor compensation in GDP.
Associate Professor Hsin Ping-lung (辛炳隆) at National Taiwan University’s Graduate Institute of National Development explained, "A decline in the labor share of GDP means that the fruits of our economic growth, specifically the GDP and the added value it creates, are not being distributed to workers as much as expected. While the economic growth rate is strong, the annual wage increase hasn’t kept pace." Hsin also highlighted that considering local price levels, Taiwan still lags behind Korea but ranks higher than Japan in terms of purchasing power parity (PPP).
Taiwan’s overall wealth contrasts with individual poverty, exacerbating the sense of relative deprivation among some of its citizens.