Labor Market Summary
According to the report of the Directorate General of Budget, Accounting and Statistics, Executive Yuan, Taiwan’s GDP growth rate for Q2 of 2021 was 7.43%, and the overall economic growth rate for the first half of the year was 8.34%. The forecast for the annual economic growth rate for 2021 is 5.88%. As countries in Europe and the Americas have gradually loosened their pandemic mitigation measures, thereby driving an increase in terminal demand, the demand for emerging technology applications, such as 5G and high-performance computing, has continued. Net foreign demand contributed 5.14% to economic growth in Q2.
On the domestic demand side, due to the level-3 epidemic alert announced in mid-May, private consumption showed negative growth; the food and beverage industry’s turnover decreased by 11.23% due to restrictions on indoor dining; passenger capacity on public transportation decreased by 20 - 30%; total sales revenue of tourist hotels decreased by 8.59%; physical retail sales have also plummeted, and most consumer purchases have shifted to online platforms.
2021 End of July Job Openings Forecast (By Industry)
Source: The third survey of manpower needs by the Ministry of Labor in 2021
According to data released by the Ministry of Labor, it is estimated that by the end of October 2021, manpower demand will increase by 44,000 from the end of July 2021. Industries with the highest demand for manpower are still predominately in manufacturing, with a net increase in demand of 27,000, mainly due to demand in the electronic components manufacturing and metal manufacturing industries. The increase in demand are mostly due to the expansion of company operations or diversified operations (65.7%), and replacing of retirees (23.1%).
Reasons for Increasing Manpower in the End of July.
Source: The third survey of manpower needs by the Ministry of Labor in 2021
The seasonally adjusted unemployment rate for July 2021 was 4.36%, for an increase of 0.46% year-on-year. The average salary for the month was NT$45,115, for an increase of 1.11% year-on-year. Total unemployment is 539,000. By age, the unemployment rate for the 20-24 age bracket is 13.87%, which is the highest among all age brackets. The reason is due to that bracket being in the first job search stage, adapting to the workplace, or being in the graduation season.
The local epidemic in Taiwan was reduced to a level-2 epidemic alert in Q3; and with the gradual increase in the vaccination rate, market stability and corporate confidence have improved compared with the previous quarter; these values are expected to gradually return to normal levels in the second half of the year. At the same time, many foreign brands still hold a very positive attitude towards the Taiwan market. As they make more frequent reconnaissance and arrangements for entering Taiwan, new opportunities for Taiwanese talent will undoubtedly open up.
Although the epidemic has compelled most companies to introduce remote work, digital recruitment, and online management, some companies have not yet made such adjustments, and have not formulated any digital strategies, still insisting on physical interviews and recruitment. It is not that the old methods are problematic, but that young talent can no longer be forced to adopt them. If companies cannot quickly adapt to market changes and adjust their digital pace and management methods, they may no longer be favored by new generations of talent and may thus face elimination by the market.
Industry Outlook
Finance and Banking
Overall employment activities for the financial industry in Q3 were relatively conservative, mainly due to the changes in consumer behavior and the new application environment in consumer finance. In order to provide such services as new payment methods or FinTech, vacancies have opened up. In addition, there are also some investment advisor positions available to meet future investment needs.
Looking forward to Q4, it may be seen that new trends in consumer finance and overall technology will continue to drive emerging financial services.
Administration and human resource management:
Affected by the pandemic, many companies have undergone organizational changes and have introduced new blended-work models, prompting human resources personnel to start thinking about the possibility of blended work in different work positions and the possible savings to be made from office space. HRBP (HE Business Partner), which understands business management and operation, also saw an increase in demand this quarter.
The younger generations, having experienced remote work, may have more conditions for requiring flexible working hours. Human resources personnel must face the work needs particular to each generation, and they must also assist management in the new challenges in conducting performance appraisals while engaged in remote work. The work environment also presents many unsolved issues for human resources personnel.
Human resources personnel may consider introducing online education and training to cope with the physical meeting restrictions imposed by the pandemic. Such measures may also help human resources personnel effectively manage remote work team members through training workshops designed for management.
Sales and Marketing
Under the level-3 epidemic alert, most of the sales openings that require face-to-face visits with customers called for a halt, delaying recruitment. Faced with a level-2 epidemic alert, companies have begun to prepare and recruit appropriate personnel, such as marketing, digital marketing, customer relationship management, and business channel management personnel, in seeking to increase performance in Q4 to make up for the previous impact from sluggish sales caused by the pandemic.
As Taiwan’s overall e-commerce sales increasingly thrive, talent in online live broadcasting and marketing data analysis are also expected to become increasingly popular.
Retail
The retail industry in north and central Taiwan has gradually recovered its operational state after dropping to a level-2 epidemic alert, and front-line staff, counter tellers, delivery workers, and other positions have opened up. Operating policy for the next quarter has also begun to be planned. It is expected that the NT$5,000 stimulus vouchers to be released in October will stimulate retail revenue. However, most retailers in southern Taiwan have been affected by the pandemic from last year until now, and their performance has been sluggish. Only physical retailers that simultaneously operate e-commerce platforms have been able to achieve revenue growth.
Although domestic food and beverage businesses are still at the forefront of the pandemic, many of these businesses which have embraced delivery services and attempted new modes of operations have survived the pandemic and have gradually found a foothold in the market and a way to survive. They are expected to gradually return to normal in Q4.
Looking forward to the next quarter, it can be seen that Shopee Taiwan will start to build its own package pick-up points; and popular Korean e-commerce companies are also planning to enter Taiwan. The overall market prospects indicate prosperity. With such market development, the importance of traditional marketing talent in the market is gradually disappearing. Instead, e-commerce channels, digital marketing, and integrated marketing talent have become more popular. In addition, when major channel leaders have control of the market, brand owners are more eager to establish direct relationships with customers; helping brands establish and maintaining customer relationships with end consumers will become increasingly important.
Merchandising and Logistics
Affected by the continuous increase in e-commerce revenue and changes in consumer behavior, logistics companies that provide freight for e-commerce have also prospered. Not only do they frequently open entry-level positions for the most terminal logistics, but they also actively recruit senior managers for operations and order management. As South Korean e-commerce companies prepare to enter Taiwan, the market prospects are promising.
Pharmaceuticals and Healthcare
Foreign companies have continued to focus on headquarters strategies; they have adopted cost reductions, and organizational restructuring; they have determined their next development direction before opening up vacancies. Therefore, recruitment demand has become less significant. In addition, health insurance conditions and current physical sales visits have been restricted; the development of foreign companies in the Taiwan market in Q4 will not be easy.
For Taiwanese companies, on the other hand, the vacancies just mentioned have recently received investment in recruitment because of the obvious market prospects. These companies are hoping to keep up with the rapid changes in the market. Opened vacancies include jobs in R&D, business development, quality assurance specialists, quality control analysts, and manufacturing specialists.
Traditional production and manufacturing:
As Taiwan has dropped to a level-2 epidemic alert, recruitment activities for traditional production and manufacturing have gradually resumed. Companies have gradually begun recruitment plans for Q4 and next year. At the same time, as the pandemic situation slows down, candidates are gradually becoming more willing to engage in interviews.
In Q3, the steel manufacturing field opened up positions for engineers and supervisors. Wind power continues to open up positions for maintenance engineers. In the bicycle industry, as international demand continues to rise, positions in global logistics, orders, inventory, and control have been opened. Due to the international state of the pandemic, the introduction of foreign workers into Taiwan is still restricted, resulting in a shortage of front-line production manpower for nearly an entire year.
On the whole, orders for the bicycle industry have already extended into next year, and the industry will continue to flourish, while the development of other traditional manufacturing fields may be similar to their development in Q3. In response to the labor shortage, some companies have gradually introduced automated equipment, and are planning to replace part-time positions with machines while filling full-time job vacancies with human personnel to maximize production manpower arrangements. In addition, because of manpower shortages, in addition to increasing salaries and benefits, companies may need to adjust their recruitment strategies to solve manpower shortages.
Technology manufacturing:
Q3 is the typical peak season for the semiconductor industry, and it has opened up considerable demand for manpower. The wafer industry in particular is experiencing labor shortages, and it is actively recruiting talent in R&D, manufacturing processes, procurement, materials, and warehouse management. The online interview and recruitment process used in response to the pandemic has also led to an increase in orders for video technology manufacturers, and the demand for recruitment has also increased significantly.
TSMC, its vertical supply chain, and surrounding manufacturer ecosystems are still the core of Taiwan’s technology manufacturing industry. However, because the semiconductor industry has continued to develop vigorously over several quarters, attracting much talent, it has also caused a shortage of talent in other industries. In response, many companies have strengthened their talent retention, and some have lowered the barriers to recruitment and replaced their original full-time job openings with assistant engineers, which they then foster to complete competency after hiring.
Q4 is expected to be similar to this quarter, with more jobs released into the market, fewer job seekers, and more job choices for candidates. In response, some companies have begun to integrate and combine positions with similar skills for recruitment to meet recruitment needs. Some companies have introduced online interviews for technicians, shortening the distance between companies and talent as well as increasing the willingness of talent from various counties and cities to accept interviews. It may be seen that companies are acquiring talent and filling job vacancies through a variety of methods and strategies.
It is suggested that in addition to salary, companies can also invest in education and training in talent development, which would give them a more competitive edge in recruitment. For technology-manufacturing talent, as remote work becomes the norm for some positions, maintaining relative flexibility and adjusting mentality to face rapid changes in the greater environment will be the key.
Information Technology
The information technology industry did not see significant change in Q3. The development of FinTech and blockchain has grown slightly and has increased the demand for manpower. At the same time, the cryptocurrency field has been suppressed in China, which has caused some companies to look to Taiwan, Southeast Asia, and other countries for talent. Inquiries for overseas job opportunities, such as those in Japan and Singapore, are still high this quarter. However, because countries have not yet fully opened up, some overseas companies have granted provisional contract status for remote work, which will gain full-time work status at the headquarters once the pandemic stabilizes.
Moving into Q4, Fintech, blockchain, and start-ups in many fields will continue to develop, driving demand for talent. In addition, outstanding talents are still able to find job opportunities overseas.
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