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Risks of manpower shortage to begin emerging next year: NDC

Risks of manpower shortage to begin emerging next year: NDC

Taipei, Jan. 21 (CNA) Taiwan's declining birth rate will soon take a toll on the country's workforce, the National Development Council (NDC, ???) warned Tuesday, noting that Taiwan's working population will fall by an average of 180,000 people annually starting in 2016. The NDC estimated that the size of the working population aged 15-64 will reach its peak at 17.37 million people this year and begin to slip next year until 2060, resulting in increasingly large manpower shortages. The demographic dividend that has helped catalyze Taiwan's economic development in the past will also come to an end in about a decade, the NDC said. The demographic dividend refers to the period of time when the workforce in a country accounts for more than two-thirds of the total population. Due to the impact of declining births and an aging society, the NDC estimated that the country's demographic dividend will end in 2028. At present, Taiwan's working-age population is 74 percent of the total population, but as that ratio declines and society ages, a greater burden will be put on income earners, the NDC said. Each senior citizen was supported by 6.2 working-age people in 2014, but that will fall to 1.2 working-age people on average by 2060. To cope with the structural changes in Taiwan's population and its shrinking working population, the NDC invited scholars, experts and related government agencies to revise population policy guidelines last year. The revisions targeted increasing the country's relatively low labor participation rate from 58 percent to 60 percent among the overal population and 50 percent to 53 percent among women. Achieving those targets means addressing the problem of Taiwanese entering the job market late and retiring early by increasing the willingness of working-age people to be part of the workforce, the NDC's Department of Human Resources Development said. Taiwan has a low labor participation rate among people aged 20-24 relative to other countries, largely because of the tendency among young Taiwanese to pursue advanced degrees after graduating. To get more young people into the workforce, the NDC said the government is mulling a diverse range of working models, such as allowing young people to study and work at the same time, or encouraging them to enter the job market earlier and then head back to school later if advanced training or studies are needed. To stem early retirement, the NDC said, the government has unveiled policies that give those over 50 years old incentives to participate or remain in the labor market. (By Chen Cheng-wei and Lilian Wu)


Updated : 2021-09-26 03:12 GMT+08:00