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Economic Daily News: New thinking needed on job creation

Economic Daily News: New thinking needed on job creation

Taiwan's unemployment rate stood at 4.24 percent last year, higher than the figures recorded in the three other "Asian Dragons" -- Hong Kong, 3.4 percent; South Korea, 2.8 percent and Singapore, 1.9 percent. The rate was even worse than even deflation-hit Japan, where the 2012 jobless rate was 4.2 percent.
The lackluster number indicates that joblessness is our most serious economic problem. Our government should give priority to creating jobs for the 487,000 unemployed to prevent their woes from blowing up into public outrage.
With old economy manufacturing jobs getting less and less attractive to young people, the service sector should be the main sphere for absorbing the unemployed workforce.
While the service sector accounts for about 70 percent of our gross domestic product, it employs only about 60 percent of the workforce.
This gap could be attributed to a combination of factors, including small operating scale, inadequate investment in research and development and disregard for service consumption.
The government has outlined an eight-year development project aimed at creating 250,000 additional jobs by 2020. Should the goal be realized, our unemployment rate could be lowered by more than 2 percentage points.
This would be a remarkable achievement. According to a blueprint unveiled by the government, the new jobs would mainly be in the retail, wholesale, restaurant, information service and design sectors.
We believe that more visionary thinking should be employed in job creation. The government should learn from other advanced countries and introduce new emerging services to Taiwan to facilitate the job creation drive. (Editorial abstract -- Jan. 22, 2013).
(By Sofia Wu)


Updated : 2021-06-20 14:21 GMT+08:00