Taiwan’s April unemployment rate hits 26-year low, outperforming China but above Japan and South Korea

Taiwan’s unemployment rate fell to its lowest April level in 26 years, showcasing a positive sign for the island’s labor market even as policymakers remain cautious about mounting global economic headwinds and regional competition.

Labor market posts strongest April showing since 2001

Taiwan’s unemployment rate edged down to 3.3% in April, marking the lowest level for the month in 26 years, according to data released by the Directorate-General of Budget, Accounting and Statistics (DGBAS). The figure showed a decline from 3.34% in March.

The seasonally adjusted unemployment rate also eased, dropping 0.01 percentage points to 3.34%.

The number of unemployed people fell by roughly 5,000 month-on-month to approximately 397,000, while total employment held above 11.6 million.

According to Radio Taiwan International, DGBAS Census Department Deputy Director Tan Wen-ling (譚文玲) told the press that the number of people unemployed due to dissatisfaction with their previous jobs fell by around 4,000 from the previous month, a trend commonly associated with Taiwan’s post-holiday job-switching wave.

Tan added that unemployment linked to the end of seasonal and temporary work after the Lunar New Year holiday period also declined by roughly 2,000.

As for the unemployment rate among those aged 15-24, it was 11.37% in April, highest among all age groups. Tan said that as graduation season approaches, it may have a more noticeable effect on the figures between June and August.

Asked whether the ongoing conflict in the Middle East had affected the labor market, Tan said no obvious impact had been observed and the overall market remains stable.

The latest figures come against a backdrop of slower trade growth, geopolitical uncertainty, and the disruptive effects of artificial intelligence on hiring patterns across export-oriented economies.

Taiwan fares better than China, but trails Japan and South Korea

In a regional comparison, Taiwan’s labor market appeared comparatively robust. China’s surveyed urban unemployment rate stood at 5.2% in April, according to Chinese official data, higher than Taiwan’s level.

China's youth unemployment rate for those aged 16 to 24, excluding students, dropped to 16.3% in April from 16.9% in March. 

Taiwan nonetheless trailed two of its advanced Northeast Asian peers. Japan’s latest unemployment rate increased to 2.7% from 2.6% the previous month, while South Korea recorded a 2.8% seasonally adjusted unemployment rate in April, according to international economic databases and official statistics.

Data released by the DGBAS showed that unemployment rates in April for Hong Kong, the US and the UK stood at 3.4%, 3.9%, and 4.6% respectively, all above that of Taiwan. 

Semiconductor strength supports hiring momentum

Taiwan’s labor market has drawn sustained support from the island’s technology sector, especially companies tied to semiconductors, AI servers, and advanced electronics manufacturing.

Industry surveys and recruitment data such as those released by ManpowerGroup pointed to continued demand for engineers, technicians, and AI-related professionals, particularly in semiconductor manufacturing and advanced computing supply chains. 

Technology-related industries have continued to benefit from strong global AI demand, helping underpin broader economic activity.

Within Taiwan, however, debate continues over structural challenges including demographic aging, uneven wage growth, and labor concentration in the technology sector.