TAIPEI (Taiwan News) — About 3,800 workers in Taiwan have been placed on partial work furloughs, with more than 70% of affected companies citing the impact of US tariffs.

According to the Ministry of Labor, 240 companies reported furloughing 3,839 workers, per CNA. While the number of companies fell by seven, the number of employees increased by 69 from the last report on March 2.

Huang Chi-ya (黃琦雅), head of the MOL's Department of Labor Standards and Equal Employment, said reduced hours remain concentrated in the manufacturing sector, with 187 companies and 3,475 workers affected, about 90% of the total. Within manufacturing, the metal and electromechanical industry is the largest, with 149 companies and 2,672 workers impacted, particularly in machinery and equipment manufacturing, which accounts for 1,698 employees.

Huang added that 184 companies with 2,804 workers reported being affected by US tariffs, representing over 70% of the total. Most of these are small-scale enterprises.

Among the additional workers affected, one larger company in the consumer goods sector with more than 100 employees cited a drop in export orders. This reduction, however, was unrelated to US tariffs.

Huang said that while the US recently announced investigations under Section 301 of the Trade Act of 1974 targeting Taiwan and other trading partners, companies have mainly reduced hours due to drops in domestic and export orders. No company has implemented reduced hours specifically in response to Section 301 investigations.

She also said fluctuations in oil prices caused by the Middle East conflict have not prompted any domestic company to reduce hours. Huang stressed that these recent developments have not yet been reflected in the ministry’s data, which it will continue to monitor closely.

The ministry said 70.4% of affected companies (169 firms) belong to industries covered by employment stabilization measures. Nearly 80% of affected employees (3,032 workers) are eligible for wage differential subsidies, meaning employees receive guaranteed minimum wages from employers plus a subsidy of 70% of the wage difference from the ministry.

The ministry added that workers in industries not covered by stabilization measures can still apply for training allowances. Employees can use reduced hours to participate in ministry training programs and receive a training allowance of NT$196 per hour, up to NT$16,300 per month, included in the wage differential subsidy.