Heavy layoffs before year’s end: Job banks

According to statistics released by the Cabinet-level Directorate General of Budget,Accounting and Statistics (DGBAS) ,the unemployment rate surged to a four-year high for September of 4.27 percent, with 464,000 people out of work, an increase of 12,000 from August.

The jobless rate for the first nine months averaged 3.96 percent, up 0.04 percentage points year-on-year.

Government statistics also show that export orders received by local manufacturers recorded 2.82 percent growth in September, the lowest in six and a half years, with orders from Taiwan’s two most important export markets, China/Hong Kong and the United States, posting negative growth.

Chang Hsu-lan, a spokesman for the online employment brokering service 1111 Job Bank, said nearly all sectors, from wholesaling and retailing to manufacturing and financial services, have felt the pinch of the economic downturn.

Citing a forecast by the Council for Economic Planning and Development, Chang said export orders are not expected to regain momentum until the third quarter of 2009.

Chang indicated that to the best of his knowledge, some companies have adopted measures such as salary cuts, unpaid leave and shortened work weeks to cope with the challenges posed by the bleak business climate.

“In the face of sluggish business, job openings will decline, “ Chang said, adding that heavy layoffs in the financial services, tourism, catering and electronics sectors are likely to occur before the end of the year.

In fact, workforce downsizing has been evident among local industries since March, said Wu Ting-ting, one of Chang’s colleagues.

With export orders dwindling, job opportunities among blue-collar workers have been affected and the wave of layoffs is expected to hit a peak around January of 2009 or ahead of the Chinese Lunar New Year.

Chiu Wen-jen, a supervisor at another online employment brokering company, 104 Job Bank, said the number of large-scale manpower recruitment cases commissioned to the company has been declining steadily since the one commissioned by Chi Mei Electronics in May.

“Actually, we have not received a single such project from the technology sector since then,” she said.

Chiu further predicted that the wave of layoffs expected to hit in November and December will expand to white-collar workers, with high-tech companies, airlines and financial service providers the most likely to downsize their staffs and impose hiring freezes.

According to Chiu, recessions tend to occur once every five years, so those who work for 30 or 35 years are likely to encounter five to seven recession cycles during their working years.

Chiu urged those with faltering job security not to feel frustrated during this down cycle and instead remain confident and optimistic.

“While the employed should work even harder to retain their jobs during a period of economic gloom, laid-off workers should remain upbeat and spend time to learn new skills and develop professional expertise to enhance their chances of finding new jobs,” she added.

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