The Future of Work 						 for the Asian YouthCountry Profile: Taiwan
Kelly (Sun Young) PARK and Melody (Yi Chien) LIN

The Future of Work for the Asian YouthContents

Country Profile: Taiwan

Contents

I.

Introduction										1II.

Demography and Labor								2A. Super-aging society and its SME-led economy					

2B. Labor 										3III.

Issues and Challenges 								4A. Structural changes in Taiwan’s industries					

4B. Education and youth employment gap						4C. Workforce and social protection issues						7IV.

Policy responses and recommendations					8A. Advantages of Taiwan								8B. Government Initiatives								9C. Policy Recommendations								10References 											13iiiThe Future of Work for the Asian Youth

I. Introduction

Country Profile: Taiwan

I.

Introduction
Taiwan, one of the Four Asian Tigers, was viewed as an East Asian economic miracle by theWorld Bank in 1973.1 In four years, Taiwan’s GNP increased by 11 times, with an averageannual growth rate of nearly 7 percent.2 Such economic success facilitated Taiwan’s debuton the global stage and became a popular choice for economic research. This miraculous
economic performance started from the 1950s when the Taiwanese government launched
an export-oriented policy.3 With sufficient labor force, Taiwan developed its light industries
such as the textile and apparel industry, and attracted extensive capital and investment
from abroad.4 After years of exporting, the domestic needs of machinery, equipment,
and intermediate materials have increased. Taiwanese government set capital-intensive
industries such as the steel industries and electricity industries as its next goal.5
In the 1980s, with the Chinese market opening, Taiwan had to transform its capitalintensive industries to knowledge-based industries. The rising costs of materials and labor
led to many factories leaving Taiwan for China. Fortunately, with the basis of intermediate
industries, Taiwan had its rapid economic expansion with the help of its rising laborproductivity and governmental policies.6 The Hsinchu Science-based Industrial Park,
dubbed as “Taiwan’s Silicon Valley,” was created during this period and led Taiwan to its
high technology development.7 By 1985, Taiwan became one of the largest producers ofcomputers around the globe. Information and Communication Technology (ICT) products
were also one of Taiwan’s primary goods exported overseas.8 Through firms such as the
Taiwan Semiconductor Manufacturing Company (TSMC), Taiwan began producing electronic
components.9 Since 1998 Taiwan became the third-largest producer of information products
worldwide, following the United States and Japan10. Thirteen Taiwanese companies, suchas the Taiwan Semiconductor Manufacturing Company and the LITE-ON Technology,11
were included in the Top 100 global technology leaders by Thomson Reuters Corp.12 Taiwan
continues to carry its title as one of the bellwethers of technological industries throughadvanced innovations, technological infrastructure, and a high capacity workforce.

1
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3
4
5

6
7
8
9
10
11
12

http://documents1.worldbank.org/curated/en/975081468244550798/pdf/multi-page.pdf
https://fee.org/articles/economic-growth-in-taiwan-invisible-factors-contributing-to-economic-development-in-therepublic-of-china/
https://aacs.ccny.cuny.edu/2013conference/Papers/Rubenstein%20Murray_2.pdf
https://taiwantoday.tw/news.php?post=13965&unit=8,8,29,32,32,45
https://ws.ndc.gov.tw/Download.ashx?u=LzAwMS9hZG1pbmlzdHJhdG9yLzEwL3JlbGZpbGUvNTYwNy83MzIvMDAx
NzUwOV8xLnBkZg%3D%3D&n=MjAxMl%2FntpPlu7rmnINf6Ie654Gj55m85bGV6Iux5paH55Wr5YaKX%2BeAj%
2BimvS5wZGY%3D&icon=..pdf)
https://milkeninstitute.org/sites/default/files/reports-pdf/Recapturing-the-Taiwan-Miracle.pdf
https://www.jstor.org/stable/2761276?seq=12#metadata_info_tab_contents)
https://www.britannica.com/place/Taiwan/Economy
https://www.nature.com/articles/d41586-020-00060-1
https://www.nomurafoundation.or.jp/en/wordpress/wp-content/uploads/2014/09/20010525_Chao-Cheng_Mai.pdf
https://www.thomsonreuters.com/content/dam/ewp-m/documents/thomsonreuters/en/pdf/reports/thomson-reuters-top100-global-tech-leaders-report.pdf
13 Taiwanese companies ranked among top 100 global tech leaders, https://focustaiwan.tw/business/201801180009
1

The Future of Work for the Asian YouthII. Demography and Labor

Country Profile: Taiwan

Although Taiwan was able to advance its economy, it is currently facing simultaneousdevelopments that are changing its industries and labor force. This paper discusses therising global issues of the future of work and its impact on youth employment in Taiwan. It
begins by giving a brief background of Taiwan’s demography, economics, and labor profile.
The next session describes the three main challenges of the future of work in Taiwan: (1)the structural change of the nature of work, (2) the gap between education and youth
employment, and (3) issues of workforce and social protection. The paper concludes byhighlighting the advantages that Taiwan holds in preparing for the future of work and abrief set of policy recommendations that will enable it to harness these advantages.
The youth population of Taiwan indicated in this paper are individuals aged between 1535 years old. While the United Nations defines the young workforce as those belonging
to the ages 15-24, this paper extends the age limit to accommodate those that fall underTaiwan’s extended education period.13 In Taiwan, the general youth have high education
attainment, which translates to a relatively older age of first-time job seekers. Statistics
from the Ministry of Labor show that the labor force participation rate is only 36% for ages
15-24. In contrast, the participation rate for the ages of 25-44 is almost triple that, reachingalmost 90%.14

II. Demography and Labor
A. Super-aging society and its SME-led economy
Despite Taiwan’s economic success in recent decades, Taiwan is facing challenging
demographic changes. The birth rate report by the World Population Review indicates
Taiwan’s fertility rate as 1.218 children per woman, the lowest around the globe.15
According to the National Development Council, negative population growth will occur
in 2020 due to a dropping fertility rate.16 This accelerates Taiwan’s path toward becominga super-aged society, where the elderly population will account for at least 20% of thenational population.17 Such early arrival of a super-aged society and declining population
might pose adverse effects on the labor force and social insurance system.18
Taiwan’s economy mostly consists of Small and Medium Enterprises (SMEs). Based on the
Ministry of Economic Affairs statistics in 2018, up to 98% of the enterprises in Taiwan
are SMEs.19 Moreover, SMEs account for nearly 80% of total employment in Taiwan20. The
13
14
15
16

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20

https://www.un.org/en/sections/issues-depth/youth-0/
Labor Force Participation Rate by Educational Attainment, Age and Sex, http://statdb.mol.gov.tw/html/mon/c2030.htm
https://focustaiwan.tw/society/201903250013
https://ws.ndc.gov.tw/Download.ashx?u=LzAwMS9hZG1pbmlzdHJhdG9yLzExL3JlbGZpbGUvNTU4OS8xMjkzLzdhOWRmMjhlLTgwYzUtNGY2Ny1iZjkxLTdkMGEzNWQ3NjMzZC5wZGY%3d&n=MTA354mI5Lq65Y%2bj5o6o
5Lyw57Ch5aCx77yaMjAxOH4yMDY1LeiLseaWh%2beJiChQZXRlcueJiClmaW5hbC5wZGY%3d&icon=..pdf
https://focustaiwan.tw/society/202008180025
https://menafn.com/1100684096/Taiwan-expects-drop-in-2020-population
https://www.moeasmea.gov.tw/files/4503/93529CB6-486E-4047-BC9E-63F7B4E7AF93
https://www.moeasmea.gov.tw/files/4503/C15B4667-A9BC-4AFD-B1D5-05967EB25FE2

2

The Future of Work for the Asian YouthII. Demography and Labor

Country Profile: Taiwan

service industry accounted for 60% of total employment, creating more than 60% of GDP
overall output value.21
B. Labor
According to the Manpower Survey done by Taiwan’s Ministry of Labor, the labor force
participation rate is up to 60%. From 2010 to 2019, the unemployment rate has gradually
declined from 5.21% to 3.73%. Taiwan’s 3.73% jobless rate is slightly higher among Asian
countries, such as Japan 2.4% and Singapore 3.1%. Also, the jobless rate is higher among
men compared to women, with 4.02% for the males and 3.98% for the female.22
The unemployment rate poses threats to the youth and the more educated. While theunemployment rate for workers aged 15-24 has dropped in recent decades, the statistics
in 2019 have risen to 11.88%, which is nearly four times the unemployment rate of workers
aged 25-44, at 3.87%.23 Taiwan’s jobless rate in 2018 for youth aged 15-24 is slightly higher
than Korea’s (10%) but nearly tripled that of Japan’s (3.5%).24 Additionally, Taiwan’s Ministryof Labor revealed that the unemployment rate is higher among university graduates.
People with college degrees face a 5.07% unemployment rate, which is the highest among
all other education holders. Senior high school graduates’ jobless rate is 3.73% while it
stands at 3.59% for junior high school graduates.25
Taiwan’s average working hours in 2019 were 169 hours monthly, with 7.8 hours overtime,
which was both slightly lower than the previous year. As for the regular income, it grew
2.26% in 2019, which amounts to 41,883 NTD(1,430 USD) per month.26 For workers under
30, their monthly income is approximately 40,776 NTD, and for those 30-34 years old, it
rises to 52,244 NTD monthly. The monthly salary is also higher for those having higher
education diplomas. (See below Table 1)
Table 1. Monthly Salary by Educational Attainment

Educational
Attainment

Primaryschool andbelow

Junior
middle(vocational)
schoolHighschoolSeniorVocational
SchoolJuniorCollegeCollegeand above

Monthly
Salary30,841NTD

45,208NTD

50,778NTD

51,614NTD

64,136NTD

70,837NTD

Source: Ministry of Labor of Taiwan

21
22
23
24
25
26

https://www.taiwanservices.com.tw/internet/en/aboutus.aspx#
https://eng.stat.gov.tw/ct.asp?xItem=42761&ctNode=1609&mp=5
https://eng.stat.gov.tw/public/Data/082411838DBU1BWDH.pdf
http://statdb.mol.gov.tw/html/nat/table4.3.pdf
https://eng.stat.gov.tw/ct.asp?xItem=42761&ctNode=1609&mp=5
https://eng.stat.gov.tw/public/Data/081016244ZX60WRYE.pdf

3

The Future of Work for the Asian Youth

III. Issues and Challenges

Country Profile: Taiwan

Despite the slightly comparable unemployment rate by gender, however, the salaryshows severe inequality between male and female workers. While the male workers gain
62,930 NTD monthly, the female workers only receive an average salary of 46,188 NTD per
month.27

III. Issues and Challenges
A. Structural changes in Taiwan’s industries
Similar to other countries around the world, Taiwan also faces the impact of the Fourth
Industrial Revolution, which was predicted to wipe out 20 million jobs with automation.28
Due to the impact of technologies, especially artificial intelligence (AI), labor-intensive andexport-oriented policies are no longer beneficial for Taiwan’s economy. Most occupationsin Taiwan are at a high risk of being replaced by automatic equipment and robots.
Some companies are already planning to replace their workers with robots. For example,
the electronics company Foxconn plans to replace 10,000 Taiwanese workers with robotics
in the near future.29 Not only will the manufacturing sectors face harsh challenges, but
the service sectors will also confront such worsening situations. Research from the World
Economic Forum has indicated that AI would pose threats to employment in the service
industries.30 This would become a significant issue in Taiwan’s industrial development
since Taiwan’s economy relies highly on the manufacturing and service sectors. An 1111
job bank survey also shows that over 50% of Taiwanese employees are worried about theirjob security due to technology. However, less than 10% of the workers in Taiwan havetaken steps to enhance their technical skills in order to face such future work challenges.31
B. Education and youth employment gap
Highly educated workforce with long hours of work and low pay
Taiwan is a developed country with a highly educated labor force and advanced humanresources capacity. From 2015-2019, 62.3% of senior high school degree holders, 74.2% ofjunior college degree holders, and 63.8% of university and graduate school degree holders
participated in the labor force.32 Taiwan has highly literate young people, having a 98.5%
literacy rate for those over 15.33 However, Taiwan’s workforce has longer average working
hours and lower salaries relative to its neighboring countries in the region.

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https://win.dgbas.gov.tw/fies/e12.asp?year=108
https://www.straitstimes.com/tech/robots-to-wipe-out-20-million-jobs-around-the-world-by-2030-study
https://www.wisconsingazette.com/views/foxconn-to-replace-workers-with-robots-at-taiwan-plant/article_02e421400cbc-11e8-a316-cb45e6cf2447.html
http://www.taipeitimes.com/News/editorials/archives/2017/03/14/2003666715
https://focustaiwan.tw/business/201807210010
https://eng.stat.gov.tw/ct.asp?xItem=12683&ctNode=1609&mp=5, Table 3. Labor Force Participation Rate by
Educational Attainment
https://wenr.wes.org/2016/06/education-in-taiwan

4The Future of Work for the Asian Youth

III. Issues and Challenges

Country Profile: Taiwan

In 2018, Taiwan had the 2nd longest average annual working hours in Asia and ranked
4th in the same category among the OECD countries.34 Taiwan’s average annual working
hours were 2,033 hours, exceeding South Korea and Japan at 2,005 hours and 1,680 hours,
respectively. The OECD average, on the other hand, is at 1,768 hours.35 Compared to its
longer than average work hours, Taiwan’s average salary and minimum wage rank low inthe region. In 2018, Taiwan’s monthly salary in industry and services was 1,737.89 USD.
In contrast, South Korea had a monthly salary of 3,067 USD, Hong Kong with 2,103 USD,
and Japan with 2,917 USD.36 In 2019, Taiwan’s minimum wage was 4.64 USD per hourcompared to South Korea’s wage of 6.84 USD and Japan’s pay of 7.92 USD.37
The long hours but low pay trait of Taiwan’s labor market is partly caused by increasing
global competition, expansion to the Chinese market, and low growth rate. Domestic
factors include increasing atypical jobs, smaller sized businesses, and the weak labor
union movement in Taiwan.38 The dominance of SMEs in Taiwan’s economy and market
dependence on the original equipment manufacturing (OEM) and original design
manufacturing (ODM) models also contribute to the stagnant wage and long working
hours. Taiwan’s government and policymakers have been collecting and analyzing thelabor market data to create policy reforms that increase the average wage while cutting
work hours. As a result, since 2013, Taiwan’s nominal wage has increased by an average of
2.3%, and working hours are reduced by an average of 2 hours annually39 .
Taiwan’s Technical Vocational Education (TVE) and job training
Taiwan’s technical vocational education (TVE) is highly praised by developing countries asa successful human capital development model and an essential contributor to economic
success as it was successfully embedded in the national economic strategy. From 19501960, TVE’s curriculum focused on agriculture, industrial, and commercial education to
support Taiwan’s economic goal for increasing agricultural productivity and transforming
into an export-oriented economy. During this period, there was a higher ratio of students
attending TVE programs than traditional high school. During the 1970s to 1980s, theTVE was dedicated to establishing technological institutions and upgrading the quality
and quantity of vocational education to match high-tech industries and petrochemicalindustries. From the 1990s to the 2000s, the TVE system expanded the establishment ofcomprehensive high schools to support the economic strategy to develop a knowledgeeconomy and expand Taiwan’s role in the Asia-Pacific region.

34
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39

https://www.taiwannews.com.tw/en/news/3785553
http://statdb.mol.gov.tw/html/nat/table6.2.pdf, Table 6-2 Average Annual Hours Actually worked per person in employment
http://statdb.mol.gov.tw/html/nat/table5.2.pdf
http://statdb.mol.gov.tw/html/nat/table5.9.pdf
https://international.thenewslens.com/article/91779
http://statdb.mol.gov.tw/html/nat/table5.2.pdf

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The Future of Work for the Asian Youth

III. Issues and Challenges

Country Profile: Taiwan

Since 2010, Taiwan’s TVE program has been focused on matching industrial workforce
demands and student aptitude to support the economic goal of developing six emerging
industries (healthcare, bio-tech, sophisticated agriculture, leisure and tourism, cultural
innovation, and green energy), ten major service industries (cuisine internationalization,
healthcare internationalization, pop music and digital contents, convention industry,
international logistics, innovation, and venture capital, urban renewal, WIMAX, Chinese
electronic business, and higher education export), and four major intelligent industries(cloud computing, smart electric cars, intelligent green buildings, and inventions andpatents).40
The current TVE curriculum includes extensive programs in electronics, biotechnology,
agriculture technology, hospital, tourism, navigation technology, and design innovation.41
These programs aim to prepare youth workers for a technology-driven environment. Oneof the key features of Taiwan’s TVE is diverse internship opportunities, which allows youth
workers to gain firsthand experience in local industries and further build practical work
skills. There are generous scholarships provided by the government to encourage youth
workers to participate in internship programs and financial incentives for local businesses
to mentor the future workforce. This effort is possible through close partnerships andcollaborations between ministries, industries, and academia.
The gap in workforce education and changing values of work
While Taiwan’s investment in education and high-level labor capacity is commendable,
Taiwan’s youth unemployment rate is still around 11.88% for the age group of 15-24,
which is triple the overall national unemployment rate of 3.73%.42 The challenges of youth
employment in Taiwan can be explained through two issues. First, there is a significant
gap between the existing education, including vocational training programs, versus skills
needed for future jobs. Second, younger generations’ work values are changing, and thedigital economy is facilitating new trends in the work environment.
In 2009, the National Development Council reported that Taiwan faces a lack of talents anddifficulties recruiting workers in key industrial sectors. The sectors with over 80% of the
difficulty in hiring included shipping, smart machinery, applied AI services, data science,and information services. In conjunction, there was a 100% demand for hiring overseas
talents in areas of smart machinery, offshore wind power, aviation, and aerospace fornational security.43 As this indicator depicts, there is an urgent need to fill in the workforce
gaps for key industries, which will strengthen Taiwan’s economic power and national
security.

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42
43

http://english.moe.gov.tw/public/Data/New182910424171.pdf
https://issuu.com/educationinternational/docs/2018_eiresearch_tvet_taiwain_preli
https://eng.stat.gov.tw/point.asp?index=3
https://theme.ndc.gov.tw/manpower/cp.aspx?n=E8A714D9C15F1A96&s=78F108EB6FF75B3E report on theestimation of supply and demand in key industries

6The Future of Work for the Asian Youth

III. Issues and Challenges

Country Profile: Taiwan

According to a recent job survey, nearly 70% of salary workers in Taiwan have jobs
unrelated to skills, which results in low earnings compared to the group of workers in therelevant job field. Comparing the two groups, the workers with inadequate job skills andknowledge match earn 28% less than those with expertise and skills related to their jobs.44
The missing talents in Taiwan’s key industries and mismatch of job skills of the workforce
and the labor market may increase future youth unemployment rates and atypical workers
under unstable work conditions and labor protections. This phenomenon calls for a timely
reformation of existing policies and strategic planning, especially targeting the youth
workforce. However, in reality, there are many challenges in creating good and inclusive
policy decisions that match the fast-paced technological changes and innovations.
The second issue deals with the change in the younger generations’ work values andthe new trends in the work environment facilitated by the digital economy. According to
the National Statistics, the leading reason for unemployment among the age groups of
15-24 and 25-44 in 2019 was due to dissatisfaction with the job. This reason surpassed
other causes, such as business closure or personal illness.45 A recent survey reported thatnearly 90% of salary employees in Taiwan wish to work abroad.46 The primary reasons fordissatisfaction in jobs are due to the low pay, long hours, competitive work environment,
and lack of future opportunities in the field. While these reasons describe typical traits oftraditional work, there are also strong desires of younger workers preferring lifestyle andpersonal development over full-time work. The value of leisure and freedom outweighs
the traditional value of work.
Under the new normal of COVID-19, traditional office work is replaced by remote
work while collaboration and business transactions are conducted through online
platforms. Remote working can be money-saving and gives flexibility and convenience
to workers; however, it also creates human resources and labor rights issues in thelong run. Slashie (斜槓) represents the new normal where young generations preferflexibility, independence, diversity, and quality of life over traditional full-time work,
labor protection, job stability, and benefits. On a positive side, these young generations
have multifaceted skills, flexibility in work, and technological advantages that can drive
innovation and entrepreneurship in the economy. However, it also means that there will
be an increase of atypical workers, which requires the government to develop policies
that ensure equal social protection and labor rights similar to typical full-time workers.
C. Workforce and social protection issues
In labor protection areas, the strength of the labor union in Taiwan is not as developed
as other countries. Thus, labor unions are unable to intervene in the development of

44
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46

https://www.taiwannews.com.tw/en/news/3968739
https://www.stat.gov.tw/ct.asp?xItem=45283&ctNode=518 Table 61 Reasons for unemployment of the unemployed-byage
https://www.taiwannews.com.tw/en/news/3857035

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The Future of Work for the Asian Youth

IV. Policy responses and recommendations

Country Profile: Taiwan

company policies.47 Although the labor law in Taiwan entitles people to join and create
labor unions, the statistics show that there is only 32.5% of the organization rate. There is
only a 7.33% organization rate for corporate unions, which is far from the total rate.48 Thismight result from the relatively higher criterion for corporate unions to set up. Moreover,
employees are frequently afraid to join labor unions for fear of their bosses, making things
difficult for them.
Other than the Taiwanese workers, migrant workers also face difficulties while working in
Taiwan. According to the statistics in 2019, there are 718,058 foreign workers in productive
industries and social welfare, which are the two main subjects open for foreign workers
by the Taiwanese government.49 The obstacles faced by the migrant workers come fromunfamiliar use with language and the lack of protection in the labor laws for them. The US
Human Rights Report 2019 pointed out that foreign workers in Taiwan remain vulnerable
to exploitation and significant debt burdens.50 Moreover, migrant workers also face being
questioned that they are “stealing” the Taiwanese workers’ existing jobs. As a result,migrant workers are left out of labor law protection regardless of facing such serious
human rights issues. Nevertheless, this portion of foreign workers would probably grow inrecent years since Taiwan is facing an insufficient labor force in the long-term care system.

IV. Policy responses and recommendations
A. Advantages of Taiwan
High-Educated Workers
Taiwanese government sets education as one of the top priorities of national issues.
One-fifth of the annual central government budget is used for education, science, andculture. Almost 50% of the population over age 15 has at least a university degree.51 In
addition, education in the field of technology has been mainly focused by the Taiwanese
government. Since 2000, computer literacy has been considered as a core curriculum
subject at all levels of education.52 The focus of Taiwanese education has been geared
towards the growth of artificial intelligence applications and other highly advanced
technological developments. In the latest curriculum plan announced by the Ministry of
Education in 2018, AI educational materials have been compulsorily integrated into all
public school curriculums53, preparing the educational system for future work trends.

47
48
49
50
51
52
53

The Roles of Labor Unions and Employee Representatives in Taiwan, https://www.jil.go.jp/english/events/documents/
clls06_08taiwan.pdf
http://statdb.mol.gov.tw/html/year/year08/d3010.htm
http://statdb.mol.gov.tw/html/year/year08/313030.htm
https://international.thenewslens.com/article/115514
https://www.taiwan.gov.tw/content_9.php
https://www.hekupu.ac.nz/article/technology-and-early-childhood-education-taiwan
https://www.viatech.com/en/2020/06/ai-education-from-past-to-present/

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The Future of Work for the Asian Youth

IV. Policy responses and recommendations

Country Profile: Taiwan

Well-Developed Internet Environment
Taiwan is one of the leading countries in technological development and innovation
for future generations. Taiwan’s proactiveness in identifying the next generation’s job
prospects, analyzing current labor trends, building a strategic development of TVE systems,
and advancing technological infrastructure, have placed Taiwan in the lead of having ahigh capacity in human resources development and technological platform.
With advantages in 5G, digital technology, health, semiconductor, and ICT, Taiwan is also
viewed as a model country for many developing nations and a hub for global technology
industries. Taiwan has an immense opportunity and advanced infrastructure to elevate its
workforce’s quality to meet domestic and international demand for a talented workforce.
More importantly, Taiwan can expand its leadership in the international community as it
demonstrates a strong willingness to share knowledge and resources with other countries.
In Taiwan, the inter-government ministries, academia, and industries work collectively tocreate a robust future workforce that can respond to technological advancements andfuture labor demands. This critical development is accompanied by ongoing efforts bypolicymakers to expand social rights and enhance the well-being of its workforce.
B. Government Initiatives
While adapting to the global changes in job markets and technological advancements,
the Taiwanese government leadership reflects a strong willingness to invest in the youth
and future workforce. In President Tsai Ing-Wen’s second-term inaugural speech, shehighlighted six core strategic industries: (1) ICT and semiconductor, (2) cybersecurity, (3)biotech and medical technology, (4) defense capabilities, (5) green energy and renewableenergy, and (6) strategic stockpile production54. These six sectors also have been integrated
into Taiwan’s TVE system.
Several inter-ministerial collaboration programs are led by ministries of the government,
industries, and academia to develop youth employment and training programs. The
programs serve various constituents, including first-time job seekers, unemployed youth
workers, atypical workers, and more. The programs provide career consultation to match
job skills, conduct research to upscale the current education curriculum, and offer general
financial incentives to encourage training opportunities and help young workers transition
from atypical jobs to full-time jobs.
Taiwan is also carrying forward a national goal to become bilingual by 2030. This
movement’s primary objectives are to elevate national competitiveness rather than simply
the ability to pass examinations and cultivate people’s English proficiency nationwide.55
While this is a long term goal, it will enhance the English proficiency of Taiwan’s future
workforce and further elevate the human resources capacity.

54
55

https://focustaiwan.tw/politics/202005200003
https://www.ndc.gov.tw/en/Content_List.aspx?n=D933E5569A87A91C&upn=9633B537E92778BB

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The Future of Work for the Asian Youth

IV. Policy responses and recommendations

Country Profile: Taiwan

The New Southbound Policy (NSP) promoted by President Tsai since 2016 is a revived
strategy to strengthen Taiwan’s ties with neighbors in the Indo-Pacific region, open doors
for more business opportunities, and foster people-to-people connections. Based on the‘people-centered’ approach, the NSP includes goals of expanding economic collaboration
and resource sharing with South Asia countries, which translates to more international
business opportunities and job creations for Taiwan. Furthermore, the NSP serves as agreat platform and resource for Taiwan enterprises to showcase its capacity building, R&D,
and high-technology sectors with the international community.
Overall, Taiwan has been diligently working toward improving its workforce and preparing
for the future of jobs. While the global and domestic challenges of changing demographics,
labor rights, youth unemployment, and the gap in job skills persist, Taiwan proves to havethe capacity and prerequisites to build a strong foundation for the future of work. More
importantly, there is strong willingness and determination from the Taiwanese government
to enhance the skill sets and generate a better work environment for its workforce. The
prospects of future jobs in Taiwan are hopeful and opportunistic.
C. Policy Recommendations
The following policy recommendations are proposed to enhance Taiwan’s efforts in
preparing for the future of work and adapting to the global changes in the workforce.
1. Provide useful incentives for enterprises to invest in employee’s lifelong learningand digital skills that can enhance their work capabilities and personal development.
Taiwan’s government has worked towards enhancing its workforce’s capacity andproviding fiscal incentives for enterprises to train their employees for job-specific skills.
The government should provide additional tax credits, larger subsidies, special award
recognition, and technology resources to enterprises that promote lifelong learningand digital training for their full-time and part-time employees in conjunction withthe existing efforts. Providing opportunities for employees to advance their language
capabilities, leadership, digital skills, and other professional development areas may
serve as a motivation for employees to better engage at work and, overall, elevate theefficiency and quality of labor in the enterprise.
Through the partnership with academia and government organizations, enterprises
can utilize existing curriculums at local universities and online tools such as Coursera
and growth with google that provide professional development services at theemployees’ convenience. The long-term investment in employee’s knowledge-centricand digital skills will better equip enterprises for the technological changes that the
future of work holds. For employees, education in technology and job-specific skills
can benefit their career development and foster a sense of job security and personal
achievement.

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The Future of Work for the Asian Youth

IV. Policy responses and recommendations

Country Profile: Taiwan

2. Reform current education and vocational training curriculums to match futurelabor skill demands involving STEM, AI, ICT, data analysis, and expand internshipprograms that can lead to full-time employment opportunities.
While Taiwan has a mature vocational training system, there are still areas of
improvement, such as integrating technology and digital skills into existing education
curriculums and diversifying internship programs to fit the change of future work.
The government should give more incentives and special recognition to companies
that are actively running internship programs and providing interns opportunities totransition into full-time working positions. The government can tap into companies tobetter understand how to integrate and apply trending technologies such as AI andsmart devices at work.
Under the recently reformed educational plan, the internship period’s extension
brings great benefits to both companies and future workers. First, the companies are
more compelled to create internship programs that train for practical and job-specificskills rather than basic administrative tasks. Second, young workers will have more
opportunities to gain invaluable work experience and insights during the extended
internship periods. This can provide young students and entry-level workers a positive
start off in finding jobs and can improve the youth unemployment challenge in Taiwan.
3. Create labor protection policies for future jobs that are inclusive of the underserved
workforce populations including but not limited to youth, women, disabled,
aboriginal community, aging workers, atypical workers, and migrant workers.
As Taiwan copes with the global trend of technological changes and adverse effects
from an aging society, the government should focus on labor policies that address such
trends and be inclusive of the underserved workforce population. As technologicaladvancements bring changes that replace human labor with technology, the vulnerable
groups in the labor force such as women, disabled, migrant workers, and others willbe the first ones to get impacted. The government should prepare policies that protectthese labor groups and alleviate the difficulties they face in finding jobs.
For example, the government could provide more flexible working conditions
and services that encourage labor participation from the underserved group. The
government should continue working on narrowing the gender income gap andimproving migrant worker protection as there might be future demand for bringing
talents from abroad. The government and companies should also actively promote
employment practices such as childcare leave, sick leave, employment dispute, goodwork practices, and others to create a healthy workplace environment.

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The Future of Work for the Asian Youth

IV. Policy responses and recommendations

Country Profile: Taiwan

4. Innovate public-private partnerships by tapping into trending businesses in Taiwan
and supporting the incubation of key industries through business-friendly policies
and tax incentives.
While it is critical to advance the six core strategic industries mentioned in the report, it
is equally vital for the government to focus on protecting and incubating small-medium
sized businesses and local enterprises in Taiwan. The government can separate
innovation from local businesses versus global enterprises and create businessfriendly policies for local firms to catch up, innovate, and further their technologicalcapacity for global competition. Providing R&D, technology transfer, domestic andforeign FDI, and human resources development training can boost local businesses’
quality of employees and services. Furthermore, the government can provide its
network and resources to local enterprises seeking to expand their services into theregional market.
Taiwan has a convenient online platform and infrastructure for businesses andpublic services. However, there could be further diversification of services to provide
accurate and up-to-date information on immigration services, tax services, banking,
IP protection rights, and other services that can be time-saving and convenient forbusinesses. In return, the local business can actively participate in surveys and datacollection efforts to provide the latest trends and outstanding issues in their industries.
The gathered data and information can be analyzed for creating better policies for the
future of work.
5. Expose Taiwan’s high tech infrastructure, R&D, and human resources capacity to
the international community for knowledge sharing and expanding opportunities
for Taiwan’s workforce.
Taiwan is a technological powerhouse attracting global firms such as Google, Apple,
Samsung, and also home to the world’s largest semiconductor and electronics
manufacturing firms such as TSMC, HTC, Foxconn. The highly skilled capacity of
Taiwan’s labor force and technology-driven initiatives by the Taiwan government-led
Taiwan to have advantages in software design, AI research, semiconductor production,
medical technology, ICT, IoT, and smart machinery development. Taiwan is proving its
capabilities and readiness to serve as a leading country in industrial innovation andthe future of technology.
It is critical to promote Taiwan’s talent, willingness, knowledge, and resources withcountries in the region through efforts such as the New Southbound Policy andinitiating proactive participation in international forums through support gatheredfrom neighboring countries. Through the knowledge-sharing of technologicaladvancements and the exchange of talents, Taiwan can explore flexible, durable,
and innovative ways to strengthen its relationships with neighboring countries whilestabilizing their place in the world.

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The Future of Work for the Asian Youth

References

Country Profile: Taiwan

References
1. 13 Taiwanese companies ranked among top 100 global tech leaders, https://focustaiwan.tw/
business/201801180009
2. Taiwanese health care ranked 1st in world: Online survey, https://www.taiwannews.com.tw/
en/news/3873772,
3. Taiwan set to become super-aged by 2025: NDC, https://focustaiwan.tw/society/202008180025
4. https://www.un.org/en/sections/issues-depth/youth-0/
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gov.tw/html/mon/c2030.htm
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12. https://eng.stat.gov.tw/public/Data/082411838DBU1BWDH.pdf, Table 3
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mon/c2050.htm
14. Unemployment rate for individuals aged 15-24 years in Singapore from 2011-2020 https://www.statista.com/statistics/708329/singapore-youth-unemployment-rate/
15. Manpower Survey Results in July 2020, https://eng.stat.gov.tw/public/
Data/082411838DBU1BWDH.pdf
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mon/c2050.htm
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18. https://www.taiwannews.com.tw/en/news/3810861

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The Future of Work for the Asian Youth

References

Country Profile: Taiwan

19. https://www.cnbc.com/2018/09/17/wef-machines-are-going-to-perform-more-tasks-thanhumans-by-2025.html
20. https://focustaiwan.tw/business/201807210010
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Participation Rate by Educational Attainment
22. https://wenr.wes.org/2016/06/education-in-taiwan
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29. https://www.taiwannews.com.tw/en/news/3785553
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english/events/documents/clls06_08taiwan.pdf
32. http://statdb.mol.gov.tw/html/year/year08/d3010.htm
33. http://statdb.mol.gov.tw/html/year/year08/313030.htm
34. https://international.thenewslens.com/article/115514
35. https://focustaiwan.tw/politics/202005200003
36. https://www.ndc.gov.tw/en/Content_List.
aspx?n=D933E5569A87A91C&upn=9633B537E92778BB

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