TAIPEI (Taiwan News) — Taiwan’s unemployment rate fell to a 25-year low in 2025, while the labor force participation rate climbed to a 36-year high.

The Directorate General of Budget, Accounting and Statistics said Thursday that the unemployment rate stood at 3.3% in December and averaged 3.35% for the year, both the lowest levels in 25 years, per UDN. The annual labor force participation rate reached 59.43%, marking a 36-year high, signaling stable employment conditions.

Tan Wen-ling (譚文玲), deputy director of the DGBAS Census Department, said the labor market remained steady in December amid a stable economy and support from the peak consumption season. She said that January’s traditional pre–Lunar New Year busy period typically drives a short-term increase in hiring demand.

Based on historical trends, January’s unemployment rate is usually lower than December’s. Barring unexpected developments, Tan said the rate is expected to decline further this year due to a rise in temporary and short-term holiday-related jobs, such as those tied to Lunar New Year markets.

Tan added that the government has rolled out multiple policy tools in recent years to boost labor force participation, with efforts led by the Ministry of Labor and the National Development Council. These initiatives focus on middle-aged and older workers as well as women.

Restrictions have been eased to allow employees aged 65 and above to remain in the workforce through mutual agreement with employers. Female labor force participation has also continued to rise, particularly among those in their 20s to 40s, strengthening women’s role as a key pillar of the labor market.

The labor force totaled 12.043 million in December, up 3,000 from the previous month, while the participation rate rose to 59.59%. Employment increased by 6,000 month-on-month to 11.645 million.

Service-sector employment rose by 4,000, agriculture by 1,000, and industry by 1,000. For the year, the average labor force stood at 12.028 million, with average employment of 11.626 million.

With US-Taiwan tariff negotiations concluded, attention has turned to whether the outcome could benefit the job market. Tan said it is still too early to see any clear short-term impact, as the tariff figures have only just been finalized.

She said that a flat 15% tariff rate is positive news for traditional industries, as major competitors in Europe, Japan, and South Korea face the same rate. Compared with the previous cumulative tariff structure, the change helps ease pressure and improve relative competitiveness for Taiwan’s traditional sectors.

Tan added that labor indicators are generally lagging and unlikely to immediately reflect policy effects. Amid global overcapacity, industrial performance remains constrained by external conditions, and labor market trends will need to be monitored alongside broader global economic developments.