TAIPEI (Taiwan News) — Taiwan’s manufacturing sector, which made up roughly 34.5% of Taiwan’s GDP in the first three quarters of 2022, is being hit by a cooling economy.

According to government data, despite an 8,000 monthly increase in workers hired in November, the manufacturing industry saw 2,000 fewer new monthly hires and an average 2.7-hour decrease in overtime from the year before. “A sluggish economy is starting to affect the manufacturing industry,” said Deputy Director Chen Hui-hsin (陳惠欣) of the Directorate-General of Budget, Accounting and Statistics (DGBAS) Census Department.

She cited weak demand amid global inflation as the cause of job cuts in manufacturing, per Economic Daily News.

“Usually, at the end of the year, the job market benefits from holiday demand and online shopping festivals (i.e., the double-11 day). Many business operators may adjust overtime hours or hire new workers to fulfill the demand,” Chen told Economic Daily News.

However, overtime hours in the manufacturing sector declined for five months straight in the latter half of 2022. The decreases in overtime amounted to 0.1 hours in June, 0.7 in August, 1.3 in September, 2.8 in October, and 0.9 in November, compared with the respective periods in 2021.

In contrast, hotels and travel bookings have perked up, benefiting from eased border restrictions and mask mandates. Surging domestic demand spurred new hires for Taiwan’s service industry.

In November 2022, new hires in hospitality increased by 2,000, while retail also saw a 2,000 increase in employee headcount, and travel companies added 3,000 employees.