The number of furloughed employees has increased to new highs since the US retaliatory tariffs in August. On Monday, the Labor Ministry announced that, as of the end of November, 456 businesses are implementing official furlough programs, affecting 9153 people, an increase of over 600 workers and 21 businesses. Of the companies affected, the overwhelming majority cite US retaliatory tariffs as the main reason for the furlough program. 

Labor Ministry Labor Standards and Equal Employment Department Director Huang Chi-ya (黃琦雅) says the increase is mostly due to three large enterprises of over 150 employees furloughing workers. All the companies, in machine manufacturing, metal product manufacturing, and consumer goods, reported the reason for the furloughs as a decrease in orders caused by the US tariff situation.

Huang said, “The increase in the number of furloughed employees is mainly concentrated in specific companies. When new cases come from large companies, each exceeding 150 employees, it naturally boosts the overall employee count. However, we still see 90% of cases in small-scale enterprises.”

Almost 72% of the companies that reported furloughing workers are in industries eligible for employment stabilization measures, meaning almost 80% of affected employees can apply for wage subsidies. For affected workers, this would add a 70% wage subsidy from the Labor Ministry, in addition to the minimum wage guarantee from companies. 

The ministry said it will continue to closely monitor the situation with proactive visits to each company as well as contact workers on unpaid leave to ensure stable employment for all.