Scholars prescribe more jobs to pull out of economic slump

Yang Chia-yan, director of the Taiwan Institute of Economic Research (TIER) Research Division VI, cited the example of a popular local resort that employs a team of people to greet guests. This type of service has helped the hotel to create a successful high-end business, he said.

“Employing more people can help to improve not only the jobless situation but also the quality of service in the country,” Yang said.

TIER recently forecast that Taiwan's economy will grow by 4.21 percent in 2010, but also expressed concerns that many uncertain factors such a sluggish recovery in the job market and the fading effects of government stimulus measures could affect growth.

As international markets begin to show signs of recovery, exports and consumption in Taiwan have been on the rise. However, the 6.04 percent unemployment rate for September showed a persistent area of worry for Taiwan, as it meant that over 600,000 people were still jobless.

The unemployment rate and the continued negative growth of wages are two major challenges to Taiwan's economic recovery, TIER said.

In addition, China's inclusion in the Association of Southeast Asian Nations (ASEAN) free-trade grouping next year is expected to greatly affect Taiwan's industrial exports, it said.

To cushion the impact, Taiwan should use advanced European and U.S. technologies to create products for the Asian market, TIER Vice President Kung Ming-hsin suggested, citing as an example the “bandit cell phones” which use key components produced by the Taiwan-based Mediatek.

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