Number of Companies on Reduced Work Hours Decreases; Some End Furloughs or Do Not Re-report
The latest statistics from Taiwan's Ministry of Labor show a decrease in both the number of companies and employees on reduced work hour schemes (furloughs). This indicates an improvement in the labor market, with some companies ending their programs as scheduled or earlier.
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- 📰 Published: May 18, 2026 at 12:34
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(CNA, Taipei, 18th) The Ministry of Labor today released its latest statistics on reduced work hours, showing a total of 254 companies and 3,319 people, both decreases from the previous reporting period (on the 4th). Additionally, among the companies that reported last period, 37 either did not re-report after their period ended or terminated the arrangement early.
The Ministry of Labor announced that a total of 254 enterprises have negotiated reduced work hours with their employees in response to economic conditions, affecting 3,319 people. This is a decrease of 10 companies and 313 people from the previous period's 264 companies and 3,632 people.
According to the Ministry's statistics, of the 254 companies implementing reduced work hours, the manufacturing industry accounts for the most with 198, followed by wholesale and retail with 42. Within manufacturing, metal and machinery industries are the most numerous at 148, followed by chemical industries at 23, consumer goods industries at 17, and information and electronics industries at 10.
By city/county, the top six municipalities account for the highest numbers, with New Taipei City having the most at 55 companies, followed by Tainan City (51), Taichung City (43), Taoyuan City (24), Taipei City (21), and Kaohsiung City (17).
The Ministry of Labor's analysis indicates that reciprocal tariffs between Taiwan and the US remain a significant reason for companies implementing reduced work hours. There are still 197 companies and 2,448 people affected, but this is a decrease of 4 companies and 97 people since early May.
The Ministry pointed out that most companies currently on reduced work hours have fewer than 50 employees affected, and the duration is mostly 3 months or less. Furthermore, of the companies from the last reporting period, 37 did not re-report after their furlough period ended or terminated it early, with 608 employees returning to their original working conditions.
The Ministry's statistics show that 70.5% (179) of the currently reporting companies are in industries eligible for the Employment Stabilization Program, and nearly 80% (78.8%, or 2,617) of the employees can apply for wage subsidies. This means that in addition to the employer paying a salary no less than the minimum wage, employees can also receive a subsidy from the Ministry of Labor for 70% of the wage difference, supporting their financial well-being.
The Ministry stated that companies report reduced work hours to avoid direct layoffs and to reduce the risk of unemployment for workers. The Ministry has launched employment stabilization measures to ensure that every worker on a reported furlough has a channel to apply for allowances or subsidies and is not left behind.
The Ministry noted that if a worker at a company on reduced hours is not in an eligible industry for the Employment Stabilization Program, they can still apply for training allowances. By participating in the Ministry's training programs during their reduced hours, workers can receive a training allowance of NT$196 per hour, up to a maximum of NT$16,300 per month within their wage gap.
The Ministry reminds that reduced work hours are not unpaid leave. For full-time employees paid monthly, the monthly wage cannot be lower than the minimum wage of NT$29,500. The employer must also continue to pay for the employee's labor and health insurance and contribute to their pension.
The "Employment Stabilization Program" was originally scheduled to run until the end of January. Due to the impact of reciprocal tariffs, some traditional industries are still under pressure, so the Ministry previously announced an extension from February to the end of July. The nine currently eligible industries include: food and feed manufacturing, textiles, rubber products manufacturing, plastic products manufacturing, metal products manufacturing, electrical equipment manufacturing, machinery manufacturing, automobile and parts manufacturing, and other transportation equipment and parts manufacturing.
The Ministry of Labor announced that a total of 254 enterprises have negotiated reduced work hours with their employees in response to economic conditions, affecting 3,319 people. This is a decrease of 10 companies and 313 people from the previous period's 264 companies and 3,632 people.
According to the Ministry's statistics, of the 254 companies implementing reduced work hours, the manufacturing industry accounts for the most with 198, followed by wholesale and retail with 42. Within manufacturing, metal and machinery industries are the most numerous at 148, followed by chemical industries at 23, consumer goods industries at 17, and information and electronics industries at 10.
By city/county, the top six municipalities account for the highest numbers, with New Taipei City having the most at 55 companies, followed by Tainan City (51), Taichung City (43), Taoyuan City (24), Taipei City (21), and Kaohsiung City (17).
The Ministry of Labor's analysis indicates that reciprocal tariffs between Taiwan and the US remain a significant reason for companies implementing reduced work hours. There are still 197 companies and 2,448 people affected, but this is a decrease of 4 companies and 97 people since early May.
The Ministry pointed out that most companies currently on reduced work hours have fewer than 50 employees affected, and the duration is mostly 3 months or less. Furthermore, of the companies from the last reporting period, 37 did not re-report after their furlough period ended or terminated it early, with 608 employees returning to their original working conditions.
The Ministry's statistics show that 70.5% (179) of the currently reporting companies are in industries eligible for the Employment Stabilization Program, and nearly 80% (78.8%, or 2,617) of the employees can apply for wage subsidies. This means that in addition to the employer paying a salary no less than the minimum wage, employees can also receive a subsidy from the Ministry of Labor for 70% of the wage difference, supporting their financial well-being.
The Ministry stated that companies report reduced work hours to avoid direct layoffs and to reduce the risk of unemployment for workers. The Ministry has launched employment stabilization measures to ensure that every worker on a reported furlough has a channel to apply for allowances or subsidies and is not left behind.
The Ministry noted that if a worker at a company on reduced hours is not in an eligible industry for the Employment Stabilization Program, they can still apply for training allowances. By participating in the Ministry's training programs during their reduced hours, workers can receive a training allowance of NT$196 per hour, up to a maximum of NT$16,300 per month within their wage gap.
The Ministry reminds that reduced work hours are not unpaid leave. For full-time employees paid monthly, the monthly wage cannot be lower than the minimum wage of NT$29,500. The employer must also continue to pay for the employee's labor and health insurance and contribute to their pension.
The "Employment Stabilization Program" was originally scheduled to run until the end of January. Due to the impact of reciprocal tariffs, some traditional industries are still under pressure, so the Ministry previously announced an extension from February to the end of July. The nine currently eligible industries include: food and feed manufacturing, textiles, rubber products manufacturing, plastic products manufacturing, metal products manufacturing, electrical equipment manufacturing, machinery manufacturing, automobile and parts manufacturing, and other transportation equipment and parts manufacturing.