l According to the latest statistics released by Taiwan's Directorate General of the Budget, Accounting and Statistics (DGBAS), Taiwan’s jobless rate was 4.28 percent in September, down 0.17 percentage points from the previous month. The seasonally adjusted jobless rate was 4.27 percent, down from 4.36 percent in August, and identical to the 4.27 percent rate in September 2008, when the global financial crisis began battering the world economy and employment market.
l The mild decrease in the jobless rate was a pleasant surprise since Taiwan’s trade performance began to slide last August and private investment this year has fallen considerably below government’s original projections.
l In addition, reports have emerged recently that companies like Everlight (TaiEx 2393) have begun asking their employees to take furloughs because of renewed fear of another global economic slowdown. Under public pressure, however, Everlight later rescinded the decision.
l Although the European sovereign debt crisis is far from over and the outlook on the US economy remains cloudy, we are not as pessimistic toward Taiwan’s, and the world’s, economic prospects in the 4th quarter this year.
l Compared with the 2008-09 global financial crisis, governments around the world, particularly those in the euro-zone, have already acknowledged that there is a budding crisis and are formulating ways to address the problem. As such, Taiwan’s economy will probably slow down since demands will drop; however, large-scale layoffs and forced unpaid leave are not considered unlikely.
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