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Weak economy could force workforce cuts: survey

Weak economy could force workforce cuts: survey

Taipei, Oct. 22 (CNA) A slowing economy at home and abroad could force about 10 percent of employers here to trim their workforces, according to the results of a survey released Thursday. Citing the survey, yes123 job bank said that 9.8 percent of the 783 corporate respondents said they planned to downsize through lay-offs before the arrival of the Lunar New Year holiday, which will fall in February 2016. Based on local tradition, employers do not have to pay year-end bonuses to employees who leave their jobs before the Lunar New Year holiday. The survey shows that 74.1 percent of the employers polled said they are likely to lay off low-level employees, while 33.3 percent of them said they could cut the number of middle-level employees. The job bank said that the plan for these employers to trim their workforces results from the economic slowdown, in particular after Taiwan reported its sixth consecutive monthly drop in export orders for September. Exports account for 60-70 percent of Taiwan's gross domestic product (GDP), and with global demand weakening, many market analysts fear it will be hard for the country to maintain its GDP growth at 1 percent for 2015. Amid cautious sentiment toward the economic climate, the survey shows, 19.4 percent of the employers have plans to cut wages, while 51.9 percent of them will target middle-level employees, followed by 48.1 percent targeting low-level employees and also 48.1 percent targeting high-ranking executives. In another survey, yes123 said, 69.6 percent of the 1,620 employees said they fear they will be laid off before the Lunar New Year holiday, while 65.4 percent of them said that they might have to take a pay cut due to the economic slowdown. Anxiety about possible lay-offs and pay cuts appeared more visible in the fourth quarter or in the first quarter of a year with the Lunar New Year holiday approaching, adding that employers here tend to announce policy changes ahead of the holiday. The survey shows that 47.2 percent of the employees had been laid off before, while 40.5 percent of them had previously suffered a pay cut. (By Tsai Yi-chu and Frances Huang)


Updated : 2021-09-25 12:05 GMT+08:00